USA Vehicle Industry Future

Fact check – The USA is the Aircraft industry motherland, as we already discussed about. Fact check – The USA also is a car industry motherland. 1978-2000 was the best time for US car manufacturers for many reasons: - US economy was good; - car manufacturers had no problems with sales; car manufacturers also had no issues borrowing $ to build new factories. Many of these corporations established their banks; a good economy allows anybody to apply for zero percentage car credit easily. As a result, each family owns two or more cars; - US road infrastructure is growing, car service infrastructure is growing, and gas is very, very affordable. All looks good, but all these factors relax the US car industry. As a result – Ford, Chevrolet, GMC, and many other brands during many years did not improve their production line, did not improve car models, did not create new car models and styles, did not innovate their products…..At the same time, the European and Asia car businesses were in much more competitive financial and customer markets and fighting with each other for sales. As a result, today, Toyota is much improved than Ford, WV is a much-improved car than Chevrolet, Mercedes or BMW is much improved than Cadillac, and we can continue this list. Many Korean brands have penetrated the US market over the last five years. It is essential also to understand that the US imposes a tariff of 2.5% on European passenger cars and car parts, while the EU taxes American cars at 10%, Korean cars in the US only under 2,5% tariffs versus 4% US cars under Korean tariffs. The same scenario is in Japan, with a 2,5% tariff for Japanese vehicles in the US versus 4,3% US cars in Japan. So, what is the future of the US car industry, and what can we expect in the next 3-5 years? Nothing change! Hyundai Motors announced plans to build a $5.5 billion manufacturing facility near Savannah, GA, plus 5.54 billion battery plant. Sono Motors, a German electric car maker, announced that power in part by solar energy Sion is roughly $25,000 and will be arriving in the US market. Mercedes-Benz plans to deliver a compact, battery-powered version of the venerable G-Class SUV in the U.S. in the first half of 2027. Mercedes-Benz said it would install a network of 2,500 high-powered chargers in the United States by 2027, a sign that the German carmaker is expanding its commitment to electric vehicles by borrowing a page from Tesla's playbook. Volvo EX30 will make its way to the US in early 2024. VinFast (Hai Phong, Vietnam) was awarded a $1.2 billion incentive package from the State of North Carolina for this project and critical financial support from the City of Sanford, Chatham County, and the Golden Leaf Foundation. Rolls-Royce Opens New Remanufacturing and Overhaul Center in South Carolina. Toyota Kentucky, representing a previously announced $145 million investment, can now produce three different engine types simultaneously on one line, making Toyota Kentucky the only Toyota plant in North America with this capability. So – it's a short review. Dear contractors, architects, structural engineers, civil engineers, and other construction industry players, be ready to work on all these projects, make money, and buy foreign-manufactured cars. Remember, all these projects are slowly destroying the US car manufacturing industry. Can US customers expect all these factors and new models to be effective in the car price? No. No matter whether this is a gasoline car, diesel, hybrid, or EV. Hybrid and EV models are constantly under improvement, and car producers need funds. Steel (or AL) prices for car body demand have increased, and car battery materials (lithium, cobalt, nickels &...) prices have already increased this year. Industry problems with cheap stressing all word during last two years and no chance situation will be much better soon. Many car producers and local dealers use all these factors for vehicle price speculation. All dealerships show new cars as used just for price manipulations. If a customer could buy a loaner car for a lower price five years ago, this option evaporated totally. So, personal vehicles will be more comfortable, more technological, and have lovely views - but at a newer, cheaper price.