Summary
The global auto industry, once buoyed by pandemic-era shortages and high prices, is now facing significant challenges.
Major automakers like Nissan, Ford, and Volkswagen are cutting thousands of jobs and closing factories due to falling demand, competition from Chinese carmakers, and rising protectionism.
Chinese brands, offering cheaper and innovative vehicles, are gaining market share, pressuring Western automakers, particularly in China.
The shift to electric vehicles (EVs) is proving costly, with sluggish demand in some markets and government subsidies declining. Some companies, like GM and Toyota, are faring better with strategic EV and hybrid models.
Perhaps companies should have “rainy day” funds in case of a downturn like they tell average citizens.
🤔
An interesting thing I found out from this article is that the drop in demand is due to non-Chinese companies not being able to compete in the Chinese market. The incoming tariff war will only make this worse. Donald Trump may be thinking he is putting American Manufacturing first, but in reality he is cutting off American companies from the largest market in the world.
Donald Trump may be thinking
Doubtful.
I’m positive his “brain” consists of two knife welding rabies infected rats in Nazi uniforms fighting over rancid cheese.
“Thrived”?
Somebody wasn’t working in the industry during the pandemic I guess…
Parts shortages driven by the one-two punch of the pandemic + the invasion of Ukraine led to a massive inventory of cars that could not be sold because manufacturing wasn’t complete:
https://www.cbsnews.com/news/ford-motor-losses-chip-shortage-rivian/
Then, the used car market exploded because people were unable to complete lease returns as there weren’t new cars to trade in for.
So, no, the automotive industry was not “thriving” during the pandemic.
Can confirm, I waited 6 months for a new car delivery (off catalogue, it wasn’t anything fancy or custom) and when delivered it lacked some electronic functions they promised at sale. At least I got a discount.
Also the pandemic is one of the things that broke Elon.
Good, let’s not bail them out again. Let the market decide.
Automakers enjoyed huge profit margins with the shortages since they could charge much more for fewer vehicles. Now that supply is back up, there is nothing justifying these ridiculous prices and they’re crying. Too bad. Also funny how they had the government shut out Chinese competition in domestic markets but they’re still losing in the China market even though there aren’t 100% tariffs on their vehicles there.
Prices on new vehicles are totally fucking outrageous. So sorry the $10K markup is no longer sustainable.
