Ford, Toyota, GM, Stellantis Sit Out on SuperBowl Ads for First Time Since 2001
America’s largest automakers will sit on the sidelines for this year’s SuperBowl, riding the bench, in a historic no-show for America’s most expensive and high-profile advertising.
In an unprecedented move that reflects the economic pressures and market dynamics, America’s four largest automakers—Ford, Toyota, GM, and Stellantis—have opted out of the annual advertising extravaganza, the Super Bowl. Due to a challenging U.S. automotive market, marked by slowing consumer demand and soaring interest rates, these companies are tightening their budgets and making significant ad spending cuts. This decision breaks a long-standing tradition; particularly notable is Stellantis, which, aside from two exceptions, has consistently participated in Super Bowl advertisements for the past 15 years.
However, foreign companies like Kia and Volkswagen are capitalizing on this situation, willing to pay the hefty estimated $7 million fee for a 30-second spot. This year’s game will mark the first time since 2001 that Ford, Toyota, GM, and Stellantis will not be advertising during the Super Bowl, reshaping the landscape of one of the most-watched events on US television.
Electric Vehicles: A Possible Cause
The auto industry might indeed be anticipating a prolonged period of turmoil following a challenging 2023. Traditional automakers had collectively invested an estimated $100 billion into mass-market Electric Vehicle (EV) production by November as they raced to compete with industry leader Tesla. Despite these massive investments, sales of these vehicles fell short of expectations. Consumers reported reliability issues, and most EV models remained prohibitively expensive for the average buyer, even with tax credits.
While none of the companies linked their decision to withdraw from Super Bowl advertising to the challenging EV market, the financial impact of their EV ventures is evident in their earnings. Ford alone projected in June that its EV division would cost it a staggering $4.5 billion in 2023. GM even scaled back its EV production target in October, citing a slowing market.
Even Tesla, the far-and-away industry leader, was hit by 2023’s rough-and-tumble EV climate. CEO Elon Musk recently admitted the company was in a “moderate low-growth period” after a years-long bull run. This year hasn’t been any better: Tesla lost over $94 billion in market valuation in the first two weeks of 2024—its worst start to a year in its history as a public company—as it digests bad news ranging from Hertz selling 20,000 EVs, to another price cut in China to expensive labor costs.
American total auto sales rose 12% in 2023, however they’re still lagging behind pre-pandemic levels. Sagging consumer demand, along with disruptions such as strikes and supply chain problems cloud an uncertain future for 2024’s domestic automotive industry.
Kia and Volkswagen Take the Spotlight
The spotlight at this Super Bowl will be largely on Electric Vehicles (EVs), with Kia set to showcase its newly launched EV9 SUV. Additionally, for the first time in a decade, Volkswagen will be running an advertisement, a teaser for which was unveiled just yesterday. As the German automaker celebrates its 75th year of operation in the United States, both Kia and Volkswagen are fervently promoting their EV lineups. As of last October, both companies reported an impressive year-over-year sales growth exceeding 60 percent, and each commands roughly 3 percent of the national EV market. However, their market share pales in comparison to Tesla’s dominant position, with the latter holding an astounding 56.5 percent of the new EV market.
Ford, Toyota, GM, and Stellantis’ decision to forgo advertising may be influenced not just by the economic climate but also by timing factors. For instance, Toyota, which became the NFL’s exclusive automotive partner last fall at an estimated cost of up to $50 million annually, does not have any significant new product launches aligned with the Super Bowl’s date on February 11.
EV Future Remains Bright
Experts predict that looking forward in 2024, global EV sales will exceed 18 million units. Due to a higher base in 2023 and because regional markets are still being affected by both positive and negative factors, the global EV market will see an annual growth of 29.6%.
Although Ford, GM, and Stellantis have had difficulty selling their EVs, the future of the EV industry remains bright. EV adoption in the U.S. has passed the early adopter stage, and is still young. It will continue to grow quickly, despite several challenges. One of the most notable challenges is public EV charging. The federal government is strongly supporting EV adoption, most recently with a momentous announcement this week. 20 states will receive $150 million in grant funding to improve existing electric vehicle (EV) charging infrastructure, to make them more reliable, according to the U.S. Department of Transportation (USDOT). Used EV models are available in greater numbers, and at lower prices, than ever before.
In the United States, Tesla will most likely continue to lead EV sales. EV expert Loren McDonald, CEO of EVAdoption, predicted the top ten best-selling battery electric vehicles (BEVs) in 2024 for the U.S. Among those top ten BEVs, McDonald listed these Tesla models:
1. Model Y
2. Model 3
4. Cybertruck
10. Model X
