The Survival Podcast Forum

Finance and Economics => The Money Board => Economic News, the Global Economy and all Things Monetary => Topic started by: Carver on May 23, 2020, 07:46:32 AM

Title: The end of the auto industry as we know it
Post by: Carver on May 23, 2020, 07:46:32 AM
Nissan considers slashing 20000 jobs worldwide amid global downturn
https://www.zerohedge.com/markets/nissan-considers-slashing-20000-jobs-worldwide-amid-global-downturn (https://www.zerohedge.com/markets/nissan-considers-slashing-20000-jobs-worldwide-amid-global-downturn)
"For years, Nissan was looking for annual sales volumes around 7-8 million vehicles. The company has never managed to sell much more than 5 million or so," one source told Reuters. "The company can no longer consider this sort of wishful thinking. The resizing issue is really being taken into account, it has a lot of consequences on operations for 2020-2022."

We recently noted that a massive roll-on/roll-off cargo ship carrying 2,000 Nissan SUVs was denied entry to the port of Los Angeles because of the glut of vehicles that sits at the port and surrounding areas.

"The port was full and the glut is indicative of just how the industry has collapsed in the U.S."


Title: Re: The end of the auto industry as we know it
Post by: Morning Sunshine on May 23, 2020, 08:16:06 AM
so now would be a good time to buy that new vehicle we were contemplating back in January... if we can still afford a new vehicle when this is all over  :-\
Title: Re: The end of the auto industry as we know it
Post by: Carver on May 23, 2020, 09:45:51 AM
so now would be a good time to buy that new vehicle we were contemplating back in January... if we can still afford a new vehicle when this is all over  :-\
I've seen some unbelievable deals, it is also a good time to unload a used vehicle which sell better during these times.
The auto industry needs to go back to simplicity and get rid of all the gizmos and electronics and make them owner-repairable. Retool the plants for 1968 Ford F-150's and Jimmy's with roll-down windows and 4-on-the-floor shifts.
Title: Re: The end of the auto industry as we know it
Post by: r_w on May 23, 2020, 09:50:02 AM
Local ish dealer is advertising seven year zero percent and no payments for six months.  It's bad.
Title: Re: The end of the auto industry as we know it
Post by: iam4liberty on May 23, 2020, 10:01:23 AM
I bought a truck during the great recession just before the GM bailout.  Dealers were desperate to unload because they were unsure of status.  Only risk to purchasing was that if they went into bankruptcy, warrantees wouldnt be honored.  But i went ahead and purchased for 52% of MSRP.  It was kind of funny because after the bailout the market stabalized and the used prices for the next 3 1/2 years were higher than what I paid new. 

I doubt that prices will get that low this time around as bankruptcies look unlikely. But surely there are some excellent deals.

On other hand,  all the rental companies are going bankrupt.  So the used market will be flooded soon too.  So that will be another great opportunity.
Title: Re: The end of the auto industry as we know it
Post by: Carver on May 24, 2020, 10:54:02 AM
Auto Inventory Glut Sends Shockwaves Across the Industry
https://finance.yahoo.com/news/auto-inventory-glut-sends-shockwaves-132301726.html (https://finance.yahoo.com/news/auto-inventory-glut-sends-shockwaves-132301726.html)

Expect to see a wave of repossessed vehicles hit the market:
The asymmetry between demand and supply of vehicles is not likely to disappear anytime soon. With more than 30 million Americans out of work and loan defaults on the rise, there are not likely to be many buyers of these big-ticket items.

Go for it?
As inventory is beyond bloated and car dealers are bleeding cash, negotiating power is likely to be tilted in favor of the buyers.

The auto industry had problems before the epidemic; a major thinning out that was inevitable has been hastened. Instead of 5 years, it will be more like 1-2 years to see a very different auto industry.