New car listings down at Carsales

Shares in Carsales.com have fallen 6% over the past couple of days on concerns about directives from car makers for dealers not to list new cars for sale on Carsales sites. Fuel was poured on the flames by an article that appeared in Fairfax publications on Friday titled Auto makers pull ads from Carsales. The article was based on research published last week by Adelaide stockbroker Taylor Collison showing sharp falls in new car listings, but was given something of an alarmist slant – most particularly in the headline, which suggested that car makers were pulling display advertisements, whereas in fact what they are doing is preventing dealers from listing new cars for sale.

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