For the first time in 23 years, none of the four largest American automakers will be airing national Super Bowl ads. However, foreign-owned companies like Kia and Volkswagen are stepping in to fill the gap, citing the challenging U.S. automotive market as a leading reason.

　　Slowing consumer demand and high interest rates are putting pressure on Ford, Toyota, GM, and Chrysler parent company Stellantis to reduce their ad spending. While car commercials are typically a staple of the Super Bowl, this year will mark the first time since 2001 that none of the Big Four automakers will be paying the estimated $7 million fee for a 30-second spot, according to AdAge's archive.

　　A spokesperson from Stellantis stated, "With a continued focus on preserving business fundamentals to mitigate the impact of a challenging U.S. automotive market... we will not be participating in the Big Game this year." Toyota mentioned that instead of an ad, they will have an "exciting, multi-faceted activation experience" leading up to and during the game, as they are currently the NFL's official automotive sponsor. GM confirmed that none of its brands would advertise during the Super Bowl and stated that they continuously update their media strategies to align with their business priorities. Ford did not provide a comment at the time of reaching out.

　　The auto industry might be facing a long hangover after a challenging 2023. Legacy manufacturers, racing to catch up with industry leader Tesla, had collectively invested around $100 billion into mass-market electric vehicle (EV) production as of November. However, sales fell short of projections, customers voiced concerns about reliability issues, and most models remain too expensive for the average consumer, even with tax credits. In the recent harsh winter storm and "bomb cyclone," Teslas failed to charge for some unlucky Chicago consumers in subzero temperatures, possibly due to a lack of awareness about how to "precondition" their batteries.

　　While none of the companies explicitly cited the tough EV market in 2023 as the reason for their Super Bowl ad pullback, their earnings tell a different story. The scramble to enter the EV market has weighed heavily on their balance sheets in the past year. Ford estimated that its EV division would cost $4.5 billion in 2023. GM revised its EV production target in October due to a slowing market.

　　Even Tesla, the dominant industry leader, faced challenges in 2023's rough and tumble EV climate. The company reported its first quarterly loss since 2020 last fall, and an executive recently acknowledged a "moderate low-growth period" after a prolonged period of success. This year hasn't been any better, with Tesla losing 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. This was due to a series of negative news, including Hertz backing out of a supply deal, another price cut in China, and expensive labor costs.

　　The sagging EV sector is also influenced by a broader industry outlook. Despite a 12% increase in total auto sales in the U.S. last year, they still lag behind pre-pandemic levels. Cooling consumer demand, along with manufacturing disruptions such as strikes and supply chain issues, present a cloudy picture for the domestic automotive industry in 2024.

　　Nevertheless, EVs will take center stage during this year's Super Bowl. Kia will promote its newly released EV9 SUV, while Volkswagen will run an ad for the first time in 10 years, celebrating its 75th year of business in the U.S. Both companies have been aggressively pushing their EV offerings, reporting over 60% annual sales growth as of October. However, they still trail behind Tesla, which holds a commanding 56.5% share of the new EV market.

　　Apart from economic conditions, timing could also be a factor in the Big Four automakers' decision to pass on Super Bowl ads. Toyota, which recently became the NFL's exclusive automotive partner for a reported cost of up to $50 million per year, does not have any major product launches coinciding with the February 11 Super Bowl date.

　　"I can't think of a vehicle that [Toyota] needs to advertise at that level of exposure. These ads are expensive," commented David Whiston, a Morningstar analyst.

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