Ford kills its EV unit. Stellantis shops factories to China. Nissan slashes models. Western automakers are coming apart and Chinese rivals are picking up the pieces.
I'm possibly going to add a fair amount of controversy, not sorry though.
Absolutely fascinating research and analysis by AlixPartners. Nailed what has been apparent since circa 2010 [ish] but not always obvious outside of European and US OEMS. In essence, a total dereliction of strategic planning for the future.
Couple the research with the comments... no... the statement of fact from the WDK MD, Boris Engelhardt, one has to conclude the strategic decisions that have been made historically, continue to have been made from at least 2010, and are now being planned to be made, are not in the interests of a western automotive industry future. Nor a number of nations and supply bases that rely on their success.
This begs a very serious question - should the executive teams or the shareholders bare responsibility of a declining automotive OEM industry, and the freefall of GDP for each of the nations affected?
As ever, a great post guys, a lot of fascinating data to work through.
I had a similar thought about Nissan needing to reserve capacity at its former Renault plant. Becoming a customer in a once-owned facility signals a capital retreat and possible loss of control.
Sometimes, leadership does whatever it takes to appease shareholders. It often seems like "the thing we have to do" in the moment, but it keeps shooting itself in the foot again and again.
As for accountability, it's telling that 2025 has had about twice as many executive turnovers as 2024. The incentive system, including compensation and shares, clearly favors short-termism and the deferral of hard investments like SDVs.
My gut says shareholders will only feel the effects of responsibility when there's a market-driven setback. Noisy shareholders pushing for reforms and restructuring probably won't stick around long enough to feel pain. If the markets punish, the strategic damage will likely be irreversible.
I'm possibly going to add a fair amount of controversy, not sorry though.
Absolutely fascinating research and analysis by AlixPartners. Nailed what has been apparent since circa 2010 [ish] but not always obvious outside of European and US OEMS. In essence, a total dereliction of strategic planning for the future.
Couple the research with the comments... no... the statement of fact from the WDK MD, Boris Engelhardt, one has to conclude the strategic decisions that have been made historically, continue to have been made from at least 2010, and are now being planned to be made, are not in the interests of a western automotive industry future. Nor a number of nations and supply bases that rely on their success.
This begs a very serious question - should the executive teams or the shareholders bare responsibility of a declining automotive OEM industry, and the freefall of GDP for each of the nations affected?
As ever, a great post guys, a lot of fascinating data to work through.
This is a really good point, Mark.
I had a similar thought about Nissan needing to reserve capacity at its former Renault plant. Becoming a customer in a once-owned facility signals a capital retreat and possible loss of control.
Sometimes, leadership does whatever it takes to appease shareholders. It often seems like "the thing we have to do" in the moment, but it keeps shooting itself in the foot again and again.
As for accountability, it's telling that 2025 has had about twice as many executive turnovers as 2024. The incentive system, including compensation and shares, clearly favors short-termism and the deferral of hard investments like SDVs.
My gut says shareholders will only feel the effects of responsibility when there's a market-driven setback. Noisy shareholders pushing for reforms and restructuring probably won't stick around long enough to feel pain. If the markets punish, the strategic damage will likely be irreversible.