The car industry faces a short-term crisis and long-term decline

the recession, investors were deeply pessimistic about the car industry. Sitting on $1.3trn-worth of legacy investments in factories that rely on a technology that ought to become obsolete—the internal-combustion engine—the likes of Ford, Renault and Volkswagen don’t exactly look well positioned for the 21st century. Now, with car sales collapsing, a dinosaur business that employs 10m people directly faces a moment of truth .

There are other dangers. As recession bites, people may default on car loans, many of which are owed to carmakers’ finance arms. The value of second-hand cars is dropping, harming these finance arms through their leasing operations. There may be a permanent fall in commuting, as more people work from home—road-passenger numbers in China are still 57% below their pre-covid level. This prospect helps explain why oil prices have collapsed .

The industry should take control of its own fate. Car firms need to be pioneers in operating factories under new health protocols, from redesigning the choreography of assembly lines to providing health tests for workers. Big Western firms are starting to re-open some plants. This won’t be lucrative, but it will stem short-term losses.

Cars are over. They will be used sparsely.

I think this virus, and response to this virus, is designed alter the way we live and cripple certain businesses that contribute to green house gasses. Forcing the collapse of the oil industry and petrol vehicle industry 🤔 coronavirus

Tha_KingShem I see you!

Gas is cheap... electric expensive and WHAT to do with battery storage🥺

Good on you Mr Musk. World needs more musks, especially now. Innovation not imitation and rentseeking.

We have an opportunity to remake the carbon economy as we emerge fro this Covid_19 crisis ClimateChange matters

Let’s get rid of those Unions!

Here is my thought bubble: auto industry is optimistic and resilient by nature. They will take it. But we don’t need Conventional Cars. Produce cheap electric vehicles.

Imho it’s a dinosaur- many brands have recognition. They just need a way forward, electric cars. forduk BMW MercedesAMG Nissan let’s start a new way forward with sustainability at its heart to reduce emissions and risks to the environment MazdaRacing ToyotaMotorCorp DM me

Here's the thing... we don't need a new car every three years, and in large cities we don't need them at all. Millennials are environmentally conscious and the carbon footprint of making a car, much less operating it, is enormous. The industry is in long term decline.

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