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2024 will go down as one of the worst years for Western automakers in an otherwise “normal” environment. The long-predicted U.S. recession remained as elusive as it was last year, and auto sales were reasonably strong in 2024. Higher interest rates, which were touted as a key negative for the auto sector, have also been coming down in the U.S. and Europe.
However, auto stocks still had a horrible year. Ford (F) stock is down over 18% on the year, while Toyota (TM) has lost 5.5% over the period. European automakers had an even worse time, with Volkswagen (VWAGY) losing 28% while European-American automaker Stellantis (STLA) has lost 43%.