Hasta la Vista, EV Dreams? Auto Industry Faces Judgement Day

EVs: There Will Be Write Downs

The auto industry is in chaos. Unprecedented disruption. John Murphy analyst dude from Bank of America says the EV head fake has caused HAVOC. Havoc I tell you! "Car Wars" report predicts future pain. Replacement rate drives market share drives profits. Skynet... I mean Tesla and Honda are winning the replacement rate game. Nissan and Toyota? Not so much. General Motors and Stellantis are somewhere in the middle. Time to adapt. Or terminate.

No Fate But What We Make: Return to Core

Turns out electric dreams are not as shiny as they seemed. Automakers are pivoting. "Customer choice," they call it. Translation: hybrids plug in hybrids and… wait for it… internal combustion engines! ICE is back baby! Cash is king and ICE vehicles are the ATM. Murphy says "The ICE Age Cometh as EV Plans Freeze." I told you I'd be back.

China's Auto Market: It's Going Down!

Not just Detroit having problems. China the world's biggest car market is in a price war. Stalling sales. Murphy says the Chinese market is "imploding on itself." Massive consolidation is coming. Price cuts everywhere. Hybrids and EVs getting slashed. Fuel powered cars getting a haircut. Maybe these guys need to be reprogrammed. If you want to live come with me!

Crossovers: The Surge is Done

Crossovers were all the rage. Now? Not so much. Murphy says the crossover "surge is done." Automakers are refocusing. Updating pickup trucks. Japanese automakers focusing on cars. Change is coming. 159 models to be launched over the next four years. That's a lot of metal. I need your clothes your boots and your motorcycle... and maybe one of those new pickup trucks.

Software: A New Hope... For Profits

Investors are skeptical. But Murphy thinks there's still potential in software. Leveraging connectivity. Going after that lucrative part of the value chain. Dealers need to get on board. Automakers could gain $133 billion in profitability through vehicle connectivity. That's a lot of terminators. Come with me if you want to profit!

Dealerships: Get to the Chopper! I Mean Service Bay!

The aftermarket industry is HUGE. Dealerships make billions. But there's another $1.2 trillion escaping automakers. Customers are going to non franchised repair shops. Murphy says automakers need to get dealers on board. Get customers into those service bays. It is vision critical. Or else... I'll be back... to fix your car myself. I am a learning computer.