The automotive industry comprises a wide range of companies that deal with the design, assembly, and sale of cars. While people stayed in the house and placed orders online, the cars not only stayed in the parking lot but stopped producing, because no one bought them. In this article, we will see what are the current problems of the US auto industry. According to us-reviews.com, lately, people have not been interested in buying a new car, given that wages have fallen and the future has become unpredictable.
Some companies went bankrupt while others closed. Also, people who want to buy a new car during this period should consider us car companies reviews. Declining sales could force factories to close and lead to takeovers and mergers.
The car industry is declining
The automotive industry around the world has been severely affected by the restrictions imposed in the context of the COVID-19 pandemic, and the recovery is slow and uncertain. The car industry fell by almost 40% in the US in March 2020, and the crisis has left cars in the parking lot. According to Time, the large number of parked SUVs is a lack of interest of people to buy cars due to the Coronavirus pandemic. Market signals show that people are looking for used cars because they are afraid of infection in public transport and people who would like to take their car for the first time a year, for example, have decided to do it now. In countries such as the USA, France or the UK, used car sales have reached record levels, even as many people have decided to give up public transport, at least for a while. In the US, dealers have quickly depleted car stocks.
The US car industry saw a sharp drop in demand for cars compared to last year. The global financial crisis has been huge and unprecedented in sales with a 40 or 50% drop for most carmakers.
Tesla growing in the market
But one type of car seems to be the big winner: the electric car because in the first six months the sales of these rechargeable cars have increased strongly. That things are changing was also shown by the fact that Tesla Motors became the car manufacturer with the largest market capitalization, surpassing at the beginning of July Toyota, the Japanese giant that has a production volume over 20 times higher.
The main car manufacturers in the US are:
- Detroit Three
- General Motors
- Chrysler LLC
- Ford
In addition to the aforementioned car manufacturers, Tesla has a growing market share due to the growing acceptance of electric vehicles. Tesla is already the most valuable car company in the world. After a 4.6% increase, Tesla reached a market share of 545.62 billion dollars, sending Elon Musk’s fortune to a value of 128 billion dollars. Tesla stock prices have risen in recent months and in December, the company will be added to the S&P 500 index.
Tesla had a production of over 500,000 electric cars in 2020, and deliveries increased by 36% compared to 2019, to almost half a million units, according to official data announced by the American manufacturer.
In the end, the important thing is that the situation seems to have been remedied on the car market, but the interest is now more on electric and hybrid models.