Automotive industry taking hits in the stock market

The automotive industry is taking huge hits in the stock market. Ford is down 8.2%. GM is down 8.5%. Stelantis (Dodge) is down 3.6%. Volkswagen Group is down by 8.7%. Toyota is down 4.2%. And even Tesla is down 2.4%.

Manufactures are referencing inflation & parts shortages as primary reasons, but it’s more than that.

What we’re seeing is a surging costs for lack-luster vehicles. The average price of new cars hit $48,000 in August. That’s for AVERAGE… aka basic transportation. And that’s IF you’re lucky enough to find a vehicle that was actually in stock without greedy dealer markups stacked on top. The average new car payment is creeping towards $1,000/month. About 15% have surpassed that.

And now – the interest rates have risen, the cost of vehicles is STILL in the stratosphere… and people are over it. Stimulus checks have dried up, business has gotten harder, and we’re on the brink of real financial insecurity. General mentalities & feelings towards the car industry are changing for the worse. People are not getting excited about the idea of a new car… because nothing about this is exciting.

Add to that – we’re seeing more recalls than ever, with higher levels of complication in the solutions…

Because EVs are being rushed to market. The auto manufacturers do not have control of their own battery cost or supply. Apple is gouging manufacturers for the next version of Apple CarPlay. In short – manufacturers have given too much leverage to outsiders & 3rd parties. US auto manufacturers seem to be playing with house money based on the knee jerk reactions (overreactions). American brands are acting erratically, while most Japanese & Korean manufactures seem more level headed. And European brands are losing their unique style & driving dynamics, thus giving up what’s historically set them apart.

If auto manufacturers want to right this ship while that’s still an option…

They need to STOP making fluffy press releases, stop virtue signaling, and START making the cars that people want… at a price that is fair & realistic. And elected officials need to step aside & give them the leash to do that.