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.
They’re building to skirt regulations (efficiency requirements scale related to vehicle size) instead of just making the small reliable vehicles that almost everyone actually needs. The increased size of the average vehicle also leads some people to prefer larger vehicles themselves even if they don’t need them. Try driving a smaller car and see how much more often you’re blinded by headlights, both oncoming and from behind.
I don’t know what the solution is but I’m glad to hear car makers are not seeing massive success with the current oversized lineups.
