New car sales are just a disaster. Or terrible. what you prefer. With the new car sales imploding the automotive industry is facing even more problems. This while Detroit in the United States is still not recovered from the collapse from a decade ago.
If we look at Fiat Chrysler than the sales are down by 10% in just 1 year. This is terrible for the firm and I expect factory closings en dealerships going bankrupted.
But it could be worse. Ford is down by 12%. This is not looking great, isn’t it?
But the problems for General motors are not only the decline in sales. The unionized workforce of GM is on strike. With the automotive union simply rejecting proposals. Prior to the last collapse unions where cheating upon the companies. The result was bankruptcies.
It makes sense for General Motors to keep its labor costs down. The firm is developing electric cars and this is very expensive. Why have an expensive workforce that is represented by cheaters?
Money losing Tesla is finally opening its China factory. By opening the company can more easily access the biggest EV market in the world. But at the same time is Tesla money-losing and are they failing to get any profits in the near future.
All these automotive news is just an indicator. Don’t forget that automotive companies are all having large financial divisions. So when the economy implodes they are hurt harder. After all, are payments in the financial division being reduced. Resulting in even more bankruptcies.