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Carmakers face a painful hit from this consumer crash

Average car selling prices are falling as ample supply and sluggish demand hit pricing power

The post-pandemic consumer boom has lasted longer than expected. But the lesson from recent results is that — at some point — depleted wallets snap shut. Ryanair signalled the end of revenge travel. Luxury groups are fraying at the seams. And the auto sector is suffering a veritable car crash.

Stellantis saw its stock fall by some 10 per cent on horrible results on Thursday. It missed expectations with net profit of €5.6bn, down 48 per cent compared with the first half of 2023, and €400mn of negative industrial free cash flow. Investors in rivals Nissan and Ford slammed on the brakes, with their stocks down 7 and 13 per cent respectively. Skittish markets marked down Renault and General Motors too, despite what looked a more solid performance.

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