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Inside The Crisis Facing US Auto Giants! 6 years later, auto makers still like to blame COVID for insane prices! You can’t help but feel as though auto manufacturer CEOs and shareholders are just price gouging buyers, paying employees garbage and refusing to listen to the consumer. I’ll say what a lot of other channels and so called media outlets refuse to say. Corporate greed has dug its own grave. The current dealership and car buying model has proven detrimental to the entire car market. Moving to the Tesla model could bring a lot of positive changes. Dealership greed was put on full display during the pandemic, taking advantage of the consumer since supply was limited. Charging markups left and right! Auto makers claim profit margins are slim. They said about 70% of the vehicle price goes toward producing it. 20-25% toward marketing it. Leaving a 5-10% margin for profit. I’m not buying it. Car prices have outpaced inflation… 81% of Americans claim to be living paycheck to paycheck Average price of a new vehicle in the US is now over $50K. Prior to 2018… cars that sold for Less than $20K made up around 1/5th of the market. The rise of popularity of the SUV have helped drive average price tags up. Trucks remain extremely popular in the US. Legacy auto makers in the US is going for profits versus volume. Higher profits per unit. CEOs continue to see wild high salaries and bonuses. GM CEO: Mary Bara $29.5M… Ford CEO: Jim Farley $24.9M… Stellantis CEO: Carlos Tavares $23.9M Lots of manufacturers have n vested tremendously in hybrids and EVs… many of these options have failed, those losses need to be eaten elsewhere. MSRP hikes across the lineup! COVID tightened supply chains, the effects of pandemic pricing and hyper inflation stuck around. Too many bells and whistles, creature comforts, and tech have driven prices up tremendously. A Platinum trimmed Ford F150 shares the same assembly line as the F150 XL or XLT. Profit margins differ greatly in both trims. China EVs are wicked cheap compared to what we see in the US. But tariffs hinder their ability to sell here for similar costs. Some manufacturers clearly operate under the impression that they’ll be bailed out by the government if things get seriously bad. Stellantis has 14 brands under their umbrella… a now European and US run company. US policy and regulatory changes come quick and are often the byproduct of political winds. Which party holds office determines focus on green energy or not. Huge loss of confidence in Stellantis products due to reliability and quality control issues. Brands like Jeep, Chrysler, Ram, Fiat, etc… CEO turnover as a constant undertone. Carlos Tavares being the last to get kicked to the curb in 2024. Ford vehicles used to be made for the average American. Go look at the price of a new F150 today, get ready to fork over $65K plus! Chrysler was supposed to be the luxury brand like Lincoln or Cadillac… but that notion was lost in the 80s for Chrysler. Now that’s what we see from Jeep with the Wagoneer and Grand Wagoneer… but people have a tough time paying six figures or close to it for a Chrysler when they could go pay the same for a new BMW or Mercedes Benz. Auto makers have refused to make affordable vehicle options for your average American. Most people do not want or need all the bells and whistles now. Most truck people want a naturally aspirated V8 over a turbo or hybrid V6. MSRPs have risen nearly 50% since 2019. The constant price hikes of MSRPs has led to the substantial rise in auto insurance premiums. We’re seeing record high vehicle repos and auto loan delinquencies. Quality is down and prices are up! 6-8% of truck buyers trade in their truck every single year. Of that 6-8% about 40% of buyers won’t even shop a manufacture if they don’t offer a V8 option. Look at Ford 150s, ones specced with the 5.0L V8 are always sold quick compared to their 3.5l ecoboost V6. Ram bringing back their Hemi V8 has led to huge increase in sales. When Ram picked to their V6 options only, sales dropped every single quarter… V8s sell very well in places like Texas where about 20% of all US truck sales take place each year. F150 lighting was a total joke. So was the Daytona Charger. And Mach-E Mustang. You cannot attached iconic American muscle nameplates to EVs. Nickel and from consumers with subscriptions. People want reliability, simplicity and affordability in 2026! Let me know your thoughts on the car market crisis we're facing in 2026. What are you seeing at your local dealerships? What will it take for this to correct itself? How many dealers will need to go belly up? Thanks for watching, if you enjoy this type of content -please consider Liking and Subscribing! LASfit link: https://lddy.no/1o4z2 Discount Code: "AUGD1" or "AUGD2" for 18% OFF! Stay Untamed... #carmarket #marketcrash #vehicles ENGAGE WITH ME ON INSTAGRAM: @untamed_motors