Pandemic-Era Car Shortages are the Defining Example of Supply-Chain Driven Inflation—And Vehicle Production Issues Are Still an Ongoing Worldwide Crisis
Very interesting article, I was really anxious waiting for your views on this market. When one looks at a car as a product where so many technologies are integrated it becomes clear that it will take a long time to go back to normal. Hard to understand how higher interest rates might help to alleviate these problems. Regards
Lots of great insights, thanks! Some thoughts:
- Your point in China and the US being the world's two biggest car manufacturers is true if you take the eurozone as one entity. If you take the EU, than that's the second largest, ahead of the US.
- About European automakers more specifically: Their margins are actually at record highs. They are hit “hardest” by the supply-chain crunch but discovered that this scarcity is actually quite beneficial to their bottom line, especially in customer segments they are in. Hence the effect on GDP is still muted. European automakers produce fewer cars but make record revenues regardless.
Would be curious to hear your thoughts about how thag compares to American and Asian manufacturers.
Never knew anywhere near this amount about global car mfg. I know that Hurricane Ian had to have swamped at least 50,000 cars with sea water. Thanks for the insight Joseph!