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U.S. Auto Industry at Risk: Asserts Blunt Report from Exec Conference
A recent report from the Global Automakers Conference has sounded a warning alarm for the American auto industry, stating that it is in grave danger of losing market share and falling behind global competitors. The report highlights several key factors contributing to this risk, including the loss of 6.6% points of global market share to Chinese automakers and EV startups.
The paper emphasizes that the Detroit Three automakers have not adapted quickly enough to the changing landscape of the industry. They are unable to compete with their Chinese counterparts in terms of cost, technology, and business model innovation. The report concludes that unless significant changes are made, the U.S. auto industry will be left behind by its global peers.
One major issue identified is the failure to adopt new engineering priorities. Legacy automakers are still using outdated approaches, such as designing instrument panels with structural beams that were required for internal combustion engine vehicles but are no longer necessary in electric vehicles. The paper suggests that American companies should learn from Chinese manufacturers and younger U.S. startups like Tesla and Rivian.
The report also highlights the lack of effective lobbying on behalf of the industry. Despite its massive size and global impact, the automotive industry has surprisingly little political influence in Washington D.C. This is partly due to suppliers and manufacturers having different agendas and priorities, making it difficult for them to present a unified voice. The paper concludes that this lack of representation puts the entire sector at risk.
The authors of the report are urging policymakers to take action to support the industry’s recovery and growth. They argue that “new ways of thinking and smart policy can breathe energy into the industry and accelerate its economic contribution.”
Source: www.forbes.com
