WHY ARE CAR SALES SUDDENLY SLOWING DOWN?

EV Channels Review

The "Autoline After Hours" panel discusses the surprising slowdown in new car sales during Q3, despite strong economic indicators like low unemployment and GDP growth. The primary culprits identified are sticker shock from significant price increases over the past three years and elevated interest rates, which deter consumers from financing purchases. While pent-up demand may have been met, uncertainty surrounding upcoming elections and the potential for future rate cuts also contribute to buyers holding off. The discussion highlights that 17 million unit sales are likely a thing of the past, with natural demand closer to 16-16.5 million. Hybrids are noted as a bright spot, not necessarily due to explicit consumer demand for the technology, but because they offer better fuel economy and are often a natural, well-integrated choice within popular models like the RAV4 and Maverick. The panel also delves into Stellantis's struggles, attributing them to a lack of product refreshes, an overabundance of brands, and a cost-cutting strategy that may have alienated key markets and employees. General Motors' EV strategy, particularly the Ultium platform and its path to profitability, is also examined, with concerns raised about achieving sufficient volume.