Tariffs are permanent. Aluminum is vanishing. Honda is closing China plants. Stellantis is shopping 4 factories. Automakers are being squeezed from every direction.
Subtext = Non-China automotive OEMs handing vehicle manufacturing and development work to their competitors.
In the short-term, I kind of get it. Their strategy over the last 15ish years failed, and now its time to get revenue from where you can and rent out the assets to pass on financial liabilities. But, it digs a very big hole that will be hard to climb out of after the recession.
Subtext = Non-China automotive OEMs handing vehicle manufacturing and development work to their competitors.
In the short-term, I kind of get it. Their strategy over the last 15ish years failed, and now its time to get revenue from where you can and rent out the assets to pass on financial liabilities. But, it digs a very big hole that will be hard to climb out of after the recession.
Amazingly, in the past week, the hole grew even bigger. 😳