Automakers Thrived in the Pandemic. Many Are Now Struggling.Changing technology, political turmoil and competition from China are cutting into profits and forcing carmakers to cut jobs and close factories.

New York times ^ | Dec 15, 2024 | Jack Ewing

[Cronos]

A few years ago, automakers were celebrating record profits as the pandemic created shortages of new cars, allowing them to raise prices. Now the hangover is setting in.

Nissan, the Japanese automaker, is laying off 9,000 employees. Volkswagen is considering closing factories in Germany for the first time. The chief executive of the U.S. and European automaker Stellantis, which owns Jeep, Peugeot, Fiat and other brands, quit after sales tumbled. Even luxury brands like BMW and Mercedes-Benz are struggling.

Each carmaker has its own problems, but there are some common threads. They include a tricky and expensive technological transition, political turmoil, rising protectionism and the emergence of a new class of fast-growing Chinese carmakers.

...The rise of Chinese automakers has been particularly tough on German carmakers. Volkswagen gets one-third of its sales from China and once dominated that market. But the company’s deliveries there plunged 10 percent in the first nine months of this year, compared with 2023.

...Toyota could be left behind if sales of electric vehicles grow faster than market analysts expect. Prices for battery-powered vehicles are dropping while the distance they can travel on a charge is growing. In China, electric vehicles are already cheaper than comparable gasoline models. More than half of new cars sold there are electric or plug-in hybrids.

[Cronos]

"In China, electric vehicles are already cheaper than comparable gasoline models."

[rottweiller_inc]

The problem with automation is that moving parts wear out and the people who supply said specially machine items, much like drug dealers, make the first taste cheap. Price goes up after that.

[Bonemaker]

“Toyota could be left behind if sales of electric vehicles grow faster than market analysts expect”

Don’t worry Toyota. GM and Ford on the other hand...😎

[ClearCase_guy]

Tariffs
And less government regulation so that the automakers can make simpler and cheaper cars — of the type that consumers want to buy.

[TwelveOfTwenty]

As I said after Trump won in 2016, we need to commit to buying American. Whether that means what's left of the "Big Three" or transplants, we need to bring those jobs back.

As unlikely as many of us thought this was, we got another chance. We need to make it work this time.

[V_TWIN]

There’s a ton of videos on this subject on youtube......e.g. when Jeep and Lincoln are asking $110k ......WHAT??!! for their high level SUVs this is what they deserve.

[Cronos]

Electric vehicles have fewer mechanical parts. Fewer points of failure.

[P.O.E.]

Thrived “during the pandemic” or thrived “during the Trump administration”?

/rhetorical

[Cronos]

In the article it points out that

Toyota relies more on hybrids and hasn’t retooled for electric. That could be a problem

GM on the other hand has a profitable electric vehicles divisions and its stock is actually up.

[George from New England]

Thrived = couldnt travel, free money, got spent on auto

[Cronos]

It will raise the price of cars. That’s as car makes will need to source from new local manufacturers

[unread]

Toyota is coming out with a pickup you can buy for twelve grand. Sounds like quite a deal.

[V_TWIN]

Thrived during the pandemic because taterhead was handing out checks like a drunken sailor.....people had disposable income so they ran out and bought cars that they eventually couldn’t afford.

1 out of every 5 auto loans are now being defaulted on and the vehicles repossessed.

[rottweiller_inc]

hehehe. Electronics are far more vulnerable to the random glitch patterns that are described in the Chaos Theory than mechanical things.

[Theoria]

Taterhead didn't start the checks, he merely followed what Trump did with raining down money. Throw in artificial low interest rates during the scamdemic, and you have a recipe for disaster housing, cars, and the rest of the economy.

[bk1000]

“GM on the other hand has a profitable electric vehicles divisions and its stock is actually up.”

Aren’t they still getting a hefty subsidy for each car? No one really wants those things.

[Leaning Right]

> Whether that means what’s left of the “Big Three” or transplants, we need to bring those jobs back. <

Right. As was mentioned elsewhere, the government simply must reduce burdensome regulations. Trump will certainly do that.

But there’s another problem. It’s greed. Union workers demand pay way out of line with their work. It’s not only them. Company executives are paid tens of millions of dollars for mediocre leadership. It’s hard to ask workers to be reasonable when their bosses are looting the company.

I don’t know how you fix that.

[DanZ]

we need to commit to buying American. Whether that means what's left of the "Big Three" or transplants, we need to bring those jobs back.

No, we do not need to do any such thing.
1. Obama motors (GM) Who remembers what Obama and the Ds did - kept GM running, and especially kept BLACK dealerships running with big $$$$ handouts
2. Ford - MANY dealerships were closed due to NO Obama $$ for Ford
3. Chrysler/Ram - now owned by the FRENCH - FIAT/NISSAN and never a very good truck

Companies need to EARM my $$$ and at 60-80,000 as the starting price for a truck - this is the definition of INSANITY

[Mr. Lucky]

Exactamente.

[Dutch Boy]

Fewer mechanical parts, but far more electronics and software. That seems to be were a lot of the EV issues fall. Those are the issues my son’s EV fanatic friends complain about, a lot. I overhear them talk about how awesome their cars are but then keep talking about how it was fixed for this or that. It’s reminded me of VP in a company I worked with a long time ago. He had a Jaguar that was in the shop every few months but the car was awesome.