CARS ARE PILING UP ACROSS THE COUNTRY. FIRE SALES IMMINENT.

EV Channels Review

The automotive industry is undergoing a significant transformation, with traditional Japanese automakers facing considerable challenges. Nissan and Honda are exploring partnerships to develop products in the US, driven by high import tariffs and a focus on domestic production. Honda, in particular, is struggling with its EV strategy, incurring substantial losses from R&D and incentives on models like the ZDX and Prologue, while also facing a $1.1 billion tariff impact. The company has drastically revised its global EV sales targets downwards. Subaru is also pivoting, scaling back its ambitious $10 billion electrification plan to prioritize hybrids over full-scale EV mass production due to slowing EV demand. Mitsubishi, despite a high inventory of 106 days supply, is hinting at a strategic shift to introduce new segments like pickups and passenger vans, though dealers express a desire for more compelling products and a return of sedans. The overall market shows a concerning trend of increasing vehicle inventory days supply, with brands like Lincoln, Jeep, Ram, Audi, Volkswagen, Nissan, and Mazda experiencing particularly high levels, suggesting potential fire sales in the near future.