...it does not matter if it is EV or ICE vehicles....the entire auto industry is moving into recession state.
...if people are struggling with cost of living, can you expect demand for vehicles to grow? Even the boomers will stop spending big soon.
I've been reviewing ALL reports of ALL major automakers which have already reported. What I see is mayhem which is not immediately visible by just looking at the headline numbers.
It's granular but some large themes start to emerge and include:
1. Volume loss
2. Price/ mix worse
3. Inventory build ups
4. Cash flow coming down
5. (a Europe issue) High R&D capitalisation
6. The finance arms of certain OEMs see default rates go up. ...
However, as of writing, a lot of big ones are still missing from the picture: Toyota, BMW, BAIC, GWM, BYD, VW Group, Mazda, Honda, Geely, DongFeng, GAC, SAIC (in no particular order). Hence, above assessment is preliminary.
