Just a few years in the past, automakers have been celebrating report earnings because the pandemic created shortages of latest vehicles, permitting them to lift costs. Now the hangover is setting in.
Nissan, the Japanese automaker, is shedding 9,000 staff. Volkswagen is contemplating closing factories in Germany for the primary time. The chief govt of the U.S. and European automaker Stellantis, which owns Jeep, Peugeot, Fiat and different manufacturers, stop after gross sales tumbled. Even luxurious manufacturers like BMW and Mercedes-Benz are struggling.
Each carmaker has its personal issues, however there are some frequent threads. They embody a difficult and costly technological transition, political turmoil, rising protectionism and the emergence of a brand new class of fast-growing Chinese carmakers. The many woes increase questions on the way forward for firms which can be a essential supply of jobs in lots of Western and Asian nations.
Many of those issues have been obvious for years however grew to become much less urgent throughout the pandemic, lulling some automakers into complacency. When shortages of semiconductors and different elements slowed manufacturing and restricted stock, carmakers discovered it simple to lift costs.
But that period is over and the business has reverted to its prepandemic state, with too many carmakers chasing too few patrons.
