Automotive Industry Hot Topics with CAR President and CEO, Alan Amici (06/28/2024)
Automotive Industry Hot Topics with CAR President and CEO, Alan Amici (06/28/2024)

On a bi-weekly basis, the Center for Automotive Research (CAR) welcomes our audience to decompress with our President and CEO, Alan Amici, as he covers and shares his thoughts on the latest Hot Topics happening in the automotive industry. If you would like to receive this bi-weekly insight into critical industry issues you and your organization are facing, sign up for our mailing list here to get Hot Topics sent directly to your inbox.  

 

Tariffs on Chinese EVs

Alan’s thoughts:

The EU plans to raise the duty on Chinese-manufactured EVs by 38%, despite European automakers opposing the tariff to prevent a potential trade war escalation. Many European manufacturers import parts from China and run the risk of facing retaliatory duties. The tariff is relatively benign when compared to the 100% duty imposed by the U.S. Still, it sends a message that “unfair subsidization” of Chinese imports will not be tolerated. Canada is considering similar measures to protect its robust automaking industry. The industry needs a level playing field and an appropriate capacity to meet demand. Excess capacity, dumping, and subsidized products create labor, supply, profitability, and sustainability issues in the long term, which is not a good outlook for the auto industry. 

 

EV Demand Decrease:

Alan’s thoughts:

GM is reducing its forecast for EV sales in 2024 by approximately 50,000 units, citing a slowing rate of sales growth. GM still expects EVs built off their Ultium Platform to be profitable, even at 200-250,000 units, suggesting GM has a good command of its variable costs and productivity improvements. Matching supply to demand is the hallmark of any good company and we’re simply seeing adjustments being made to match the market demands. Fortunately, companies such as GM, Ford, Toyota, and others have sufficient alternative powertrains to offer to customers with little or no disruption.

Meanwhile, Fisker files for bankruptcy, highlighting the cash-hungry nature of automotive design, development, and production. It takes more than a good idea and talent to make it as an OEM.

 

Alan Amici

President & CEO

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The post Automotive Industry Hot Topics with CAR President and CEO, Alan Amici (06/28/2024) appeared first on Center for Automotive Research.