Automakers thrived in the pandemic. Many are now struggling. - eviltoast
Automakers Thrived in the Pandemic. Many Are Now Struggling.
www.nytimes.com
Changing technology, political turmoil and competition from China are cutting into profits and forcing carmakers to cut jobs and close factories.

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.

Non-paywall link

  • henfredemars@infosec.pubEnglish
    12·
    5 days ago

    Part of the demand drop is that automakers aren’t making a product consumers want to buy. They got lazy during the pandemic, and now that the sugar rush has ended their “cutting out entire product lines that appealed to the common buyer” has come home to roost.

    You can only sell so many $100k pickups.

    EDIT: Added quotes to make the sentence easier to read. My grammar is weird.

    • Tower@lemm.ee
      7·
      5 days ago

      Not just a product that consumers don’t want to buy, but one that most consumers can’t buy because of high prices and low wages.

      I purchased my current car used. I plan to purchase my next car used. The new car I bought in 2016 will likely be the last brand new car I ever buy (I know buying used typically makes more sense anyways, but the point still stands).

    • PlantJam@lemmy.world
      6·
      5 days ago

      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.