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.
Prices on new vehicles are totally fucking outrageous. So sorry the $10K markup is no longer sustainable.
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.
“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.
well there’s a simple solution to that: make cars that people want to buy.
I was in the market for a car recently. I wanted a small city car. All the big players have now is crossovers and suvs.
So that’s why I got a chinese made vehicle. It was what I wanted, and it exists. The reason I didn’t buy something european is because none of them make anything I’d want to buy anymore. Maybe the fiat 500, but that’s a bit too pricey, imo.
