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Can the U.S. auto industry adapt fast enough to survive?
Posted on 3/30/26 at 11:12 am
Posted on 3/30/26 at 11:12 am
quote:
Toyota has always run lean with little appetite for risk. That strategy has worked out well—at least up until now. However, its outgoing CEO, Koji Sato, recently raised a red flag about the state of the auto manufacturing industry. And if Toyota is feeling the heat, you know there's trouble ahead.
Sato spoke up at a recent supplier summit where 484 different companies gathered. Speaking to the hundreds of executives in attendance, Sato delivered a very clear message that things need to change, or Toyota, the world's largest car company by sales, "will not survive."
Inside EVs - via yahoo
Toyota is significantly more resilient than most US automakers, in large part because they didn't over commit CAPEX to the EV game. Ford and other US automakers (who to be fair were nudged in that direction by politics) miscalculated their ability to compete in the EV domain and suffered great financial losses because of it.
China appears to be a real existential threat. Even tariffs which both Trump and Biden supported on Chinese autos don't solve the problem completely.
And of course this applies to the automotive industry in all countries, not just the U.S. Japanese and German automakers are at risk as well.
I'm not sure how this all plays out but I think 20 years out some major brands will have vanished.
16
Posted on 3/30/26 at 11:16 am to Powerman
quote:
China appears to be a real existential threat. Even tariffs which both Trump and Biden supported on Chinese autos don't solve the problem completely.
The day I get into a Chinese made vehicle, it would done by force, not voluntary..
quote:
I'm not sure how this all plays out but I think 20 years out some major brands will have vanished.
What major Brands?
GM already dropped Pontiac, Oldsmobile and Saturn. GMC, Chevy, Cadillac and Buick are still going strong... Unless they drop Hummer.
Chrysler dropped Plymouth.
This post was edited on 3/30/26 at 11:25 am
Posted on 3/30/26 at 11:17 am to Powerman
As long as people are willing to pay 80k for trucks and yukons the car industry will survive
Posted on 3/30/26 at 11:19 am to Cosmo
quote:
As long as people are willing to pay 80k for trucks and yukons the car industry will survive
There are only so many people who can "afford" that though
Posted on 3/30/26 at 11:20 am to Powerman
American cars need to be more reliable for me to care about them.
Posted on 3/30/26 at 11:21 am to Powerman
quote:
There are only so many people who can "afford" that though
Are you under the assumption that people are paying for these trucks outright? Most are paying monthly payments of $300-$400 over the next 15 years to pay it off.
Posted on 3/30/26 at 11:22 am to Powerman
Biden Administration killed American Automakers with all of this emission and ev Garbage.
This post was edited on 3/30/26 at 11:25 am
Posted on 3/30/26 at 11:23 am to Powerman
Maybe, if they abandon the EV nonsense and focus on making great normal vehicles.
Posted on 3/30/26 at 11:25 am to Powerman
Elon is rolling out fully autonomous cybercabs this year. No steering wheel or pedals. A lot of automakers are going to be significantly behind the curve and some won't recover.
Posted on 3/30/26 at 11:29 am to CastleBravo
quote:
Maybe, if they abandon the EV nonsense and focus on making great normal vehicles.
Toyota never got into that nonsense and they're concerned
Even with the pivot back to ICE engines, the industry seems to be in a state of adapt quickly or die
Posted on 3/30/26 at 11:35 am to Powerman
quote:
There are only so many people who can "afford" that though
10 year note makes everything affordable
Posted on 3/30/26 at 11:36 am to UcobiaA
quote:
Elon is rolling out fully autonomous cybercabs this year. No steering wheel or pedals. A lot of automakers are going to be significantly behind the curve and some won't recover.
The self driving market seems to be an almost completely separate niche market
I think the ultimate play for Tesla will be to eventually sell this tech to other companies
Posted on 3/30/26 at 11:37 am to Cosmo
quote:
10 year note makes everything affordable
You're sort of getting off topic
That doesn't do anything to help the actual automakers. It's a way for dumb people to finance vehicles.
Posted on 3/30/26 at 11:38 am to Powerman
quote:
That doesn't do anything to help the actual automakers.
When automakers do the financing it helps
10 years of interest to boost bottom line
Posted on 3/30/26 at 11:43 am to Powerman
quote:
The self driving market seems to be an almost completely separate niche market
Agreed. I would even say the Ev mkt as a whole.
But I am going to wait for Elons zero gravity car
Posted on 3/30/26 at 11:47 am to Powerman
No 'entry-level vehicles', hardly. It's all near 100K SUVs and trucks.
Prices keep skyrocketing due to an endless array of electronics that are now "necessary" in every vehicle. This also makes auto insurance exponentially more expensive. The used car market is ridiculously inflated. And as previous posts have pointed out, it's all reliant on the debt bubble and with decent paying jobs in decline, you have to wonder how much lifespan that thing has left in it.
Prices keep skyrocketing due to an endless array of electronics that are now "necessary" in every vehicle. This also makes auto insurance exponentially more expensive. The used car market is ridiculously inflated. And as previous posts have pointed out, it's all reliant on the debt bubble and with decent paying jobs in decline, you have to wonder how much lifespan that thing has left in it.
Posted on 3/30/26 at 11:51 am to Cosmo
quote:
When automakers do the financing it helps
10 years of interest to boost bottom line
OK bud you seem to be missing the point here. That financing structure already exists. Yet in despite of that leaders at very resilient firms like Toyota are sounding the alarm.
Posted on 3/30/26 at 11:53 am to Powerman
quote:
Even tariffs which both Trump and Biden supported
Just outed yourself. Not a single one of you complained about tariffs under Biden.
Posted on 3/30/26 at 11:55 am to dgnx6
“I wish a Ford and a Chevy would still last 10 years like they should.”
Posted on 3/30/26 at 11:57 am to dgnx6
quote:
Just outed yourself. Not a single one of you complained about tariffs under Biden.
And you just outed yourself as functionally useless. It has nothing to do with the topic at hand.
But maybe you can sleep well tonight knowing that you stepped in to defend Trump who isn't even being criticized in the thread in the first place.
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