This problem needs to be solved fast as now we have several American vehicle manufacturers not doing well.
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Overpriced and lower quality as compared to Toyota, Honda, BMW, VW, etc? Same reason(s), different decade.
Too much content that some people don't need or want. I'm young, drive an older manual transmission vehicle and despise all the electronic babysitters and screens in newer vehicles.
"What is the core reason cars are not selling?"
Average base selling price for ICE vehicle: $46,500 ($41k in 23')
BEV: $60k
And we have loans that extend for eight years.
Cut out half the useless cr-p that no one needs or uses, help out our complexity, reduce our warranty and start selling affordable vehicle again.
The economy is cooling down, starting with the brake and accelerator function of the FED. We went from near zero interest rates up to where we are now in record time. It's a large adjustment in which discourages borrowing, and taking on new loans.
Since the beginning of 2024, companies all over have been reducing headcount, as silently as possible. Each layoff will result with a perpetual cycle that will build on itself and eventually gain momentum. Job markets are not hot any longer, so everyone that can't find a job, is not usually a participant in the current market.
As you may recall, most of the OEMs and tiers bet the farm on EV's, only to find out that very few want them, and with no way to force or capture the ones that do not want them. This in turn adds to a tremendous flop in profits, and fuels further layoffs.
With the stock market at record high after record high, it's best to do some research into monetary history of the past, and what happens next when those levels are achieved in a blow off top. When everyone is screaming it can only go higher, is when you should be fearful.
This economic cycle of forty years (40) years is about over with, ending in 2022. I believe we are in the death throes of the reminder of it before the deleveraging begins.
So to answer your question, what can any of the OEMs do to make changes?
That answer is to brace for impact. To understand this, you must recall the similarities of 2008, and then multiply those same situations, by a bubble that is a multitude larger.
For those that say this time is different, or that is incorrect, that's actually what is anticipated. You are expected to always, always, always buy the dip.
- Until the dip isn't the dip anymore, but actually timber.
Stellantis stock cratered 50% in two (2) quarters. Two quarters. Does anyone actually believe that's the end of the fall? What happens when the market turns? All boats rise with the tide, and fall with the tide...
The solution apparently is keep making up lost revenue with recalls. Insurance pays for it so why sell cars.
Inflation/green new scam
Because coming out of a pandemic during record inflation, our CEO thought it would be a great idea to sell premium luxury vehicles while our competitors made cheaper models