readers have been predicting a major upheaval in the global auto market for years now, precipitated primarily by the success of the EV revolution. It’s not easy building traditional cars and trucks while also building the battery powered vehicles that will replace them. This week may mark the beginning of the end so many have been predicting for years.
Nissan was hit hard by higher inventories, as its fiscal first quarter profits were virtually wiped out and it slashed its annual outlook due to deep discounting in the US market to get cars off dealer lots. Dealer oversupply is becoming a problem for several companies who sell cars in the US, a situation made worse by the CrowdStrike software debacle that made it impossible for some dealers to complete sales in the regular course of business for up to a week.
The planned investment in the factory is said to be around five billion dollars, while the production capacity would be up to one million electric cars per year. It is not clear which models Tesla was or is planning to build in Mexico. There have been reports that production would not kick off until 2026 or 2027.
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