Automakers are facing significant challenges in the competitive U.S. car market, with weak prices, high inventories, and logistical issues denting profits. Ford, Stellantis, and Nissan saw their shares plummet on Thursday, with Ford down 16% due to high warranty costs and struggles in its EV business. Stellantis lost nearly 9%, and Nissan dropped 7%, dragging Renault down despite strong profits.
A June software outage exacerbated excess inventory, doubling new vehicle supply year-over-year. Analysts expect normalization in a few months, but investors remain cautious about pricing risks. Nissan’s CEO admitted the difficulty in managing U.S. inventory, and Stellantis’ CEO threatened to axe underperforming brands.
The outlook for global automakers remains bleak, with rising U.S.-China tensions and competition from Chinese rivals adding to the turmoil. Hyundai’s strong U.S. sales of premium SUVs offer a glimmer of hope amid the broader industry struggles.
