..."I see EVs everywhere in where I am" so says a European who is an LTR lithium hodler.
... EU car makers are in trouble, questionable how far they can get ahead in EVs in EU (without the help of the Chinese).
...Suffice to say the case I have laid out for China domination in EV/Lithium is pretty spot on - and believe me, the Chinese EV/Battery barons do not want higher lithium prices. So keep hoping.
German Auto Industry in Free Fall
An automotive industry study from EY shows the devastating situation the German Auto industry is in.
VW Group, Mercedes, BMW Profit: €7.1 Bn Compared to Q3 2023 about -50% Profit Q3 Revenue €145Bn or -6% (-18% in 1H24) Due to the slump in profits, the margin, which measures operating profit in relation to turnover, almost halved to 4.9 percent.
Suzuki was the most profitable car manufacturer globally in Q3 with 12.7 percent ahead of Kia (10.9 percent) and Tesla (10.8 percent). Q3 Profits: Mercedes 7.3% BMW 5.2% VW 3.6% EY industry expert Constantin Gall said: “The German car manufacturers in particular have had a pitch-black quarter.”
German Automakers have lost the battle, have lost the war in their most important market in China and there is not a single sign that they will recover. Without China, the companies won’t survive in their current form. “There is fierce cut-throat competition in China, which is heavily centered on price. There is currently not much to be gained here for the established companies,” said Gall. To give just one example of many, the registration figures from data provider MarkLines show that no month since May has seen more than 100 EQS, i.e. the electric S-Class, Mercedes' flagship BEV, registered. A market in which Mercedes currently sells a third of all its cars and which is also considered irreplaceable for the company.
The records of the post-CoVid years had concealed deep-rooted structural problems that are now coming to light without mercy. For example, the German automotive industry is finding it difficult to keep up with the pace of new competitors in the electric sector - for example from China. The costs are too high, the equipment too cumbersome.
“The next few years could be brutal.” I hate to say that the worst I have been predicting for the last 10 years has became true. The next years will be for the German Auto Industry brutal and bloody.
