IS THE AUTO INDUSTRY GETTING BACK ON TRACK?

EV Channels Review

Autoline After Hours episode 514 delves into the complex state of the automotive industry amidst the COVID-19 pandemic. Industry expert Jeff Schuster of LMC Automotive provides a sobering forecast, predicting a global loss of 20 million units for 2020 and a cumulative loss of 55-60 million units over the next five years, with a base case recovery shaped like a modified 'V'. The discussion highlights the resilience of the industry in adapting to remote work and supply chain challenges, though significant risks and uncertainties, including potential second waves, remain. The conversation also touches upon the performance of different market segments, with pickups currently strong while luxury brands face headwinds. A significant portion of the episode is dedicated to General Motors' electrification strategy, with Mary Barra outlining a future of compelling EVs like the Hummer EV and Cadillac Lyriq, aiming to capture new markets, while continuing to leverage profitable ICE vehicles like trucks and SUVs. The panel debates the necessity and effectiveness of government incentives, like 'cash for clunkers' and EV subsidies, with a consensus that while current demand might be sufficient, future support could be crucial for accelerating EV adoption.