Inflation, supply chain disruption, and other issues have impacted all industries over the past half-decade. Like many aspects of the economy, there are also several issues in the automobile industry.
CNBC begins the video by explaining that the Volkswagen Group, the second largest automaker in the world, may have to close two factories in Germany. In three chapters, the CNC video explains why automakers are losing billions on their factories, factory utilization, EV transition, and the “New Normal.”
Billion-dollar losses, massive job cuts, and a long, difficult transition to electric vehicles loom on the horizon. Lower electric vehicle sales coupled with friction-laden EV transitions have resulted in empty factories across North America and the world. Here in the US, factory utilization is below profitability and there is concern over a deluge of high-quality yet inexpensive Chinese electric vehicles.
