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.
He doesn’t actually care about America first, just Donald first. Tariffs are merely a bargaining chip that he can use to encourage bribes in order to get exemptions, or a cynical market play that makes him and his masters money at the expense of the economy . Or hell, the likeliest could just be Putin tugging on the leash to get him to hurt the US economy as much as possible, though if the energy markets bottom falls out, Putin might be in actual trouble
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.
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.
"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.
There is no reason they should have thrived during the pandemic, they should have been taking a hit just like the customers. If they were taking increased profits, then it's because they were screwing over customers during a challenging time.
Any auto maker that focuses on practical/efficient/affordable will benefit in the long run, and the fact that another country is more focused on that, makes the real threat of competition.
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.
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