Things are getting a little rough in the automotive industry, and by a little I mean a lot. Some of the biggest losers are the biggest automakers, and the fallout isn’t looking pretty. People in the US were buying new cars in a frenzy, but the good times are ending.
As the largest automaker out of Japan, Toyota is a juggernaut. But Reuters reports the company is seeing profits go down the crapper, with an estimated 20 percent loss this year. Yikes. That means Toyota might have to cut back on its favorite activity: developing new tech. You’ll probably have to keep waiting for your sentient Corolla. Sorry.
Bloomberg says Ford’s adjusted earnings for Q1 of this year took a 42 percent hit. Actually, Ford’s been on a slide for a while now, with shares shrinking 35 percent since clear back in 2014. That’s the kind of problem all the Focus STs and Explorer Sports can’t fix. Again, this means investors are asking Ford to stop charging ahead on risky technologies, like robot taxis. Sad.
The Wall Street Journal says Ford is going to cut 10 percent of its workforce worldwide to help stem the financial hemorrhaging. That means about 20,000 people looking at layoffs, supposedly all salaried workers.
Keith Crain, Editor-in-Chief of Automotive News pointed out GM isn’t escaping the financial pain game, thanks to a U.S. Supreme Court decision that lets people sue the new GM for the old GM’s coverup of faulty ignition switches. As Crain notes, the losses for GM could rival Volkswagen’s Dieselgate settlements. That’s gonna leave a mark.