Daniel Howes The Detroit News Published 10:30 PM EDT Jun 26, 2019 The auto industry’s profit party is winding down, imperiling jobs, plants and products in a scramble to embrace electrified and self-driving vehicles. In a sobering new report, industry consultant AlixPartners LLP describes a looming “profit desert.” Crossing it over the next few years could have profound implications for Detroit’s automakers, their place in the next-gen automotive hierarchy, the United Auto Workers, even the reinvention of the city itself. The Auto 2.0 spaces of mobility, autonomy and electrification are consuming vast amounts of capital — $85 billion invested in self-driving vehicle projects by 2025 and $225 billion earmarked industry-wide to develop battery-electric vehicles over the next four years — as returns on those investments decline, sales in major markets soften and break-even points approach pre-meltdown levels. That’s a … [Read more...] about Auto 2.0 spending promises ‘profit desert’
Detroit trading auto loans
Frank Witsil Detroit Free Press Published 11:48 AM EST Feb 15, 2019 Phaedra Wainaina, a new Wayne State University Law School graduate, lost her job as a legal researcher, and during two months of unemployment, her bills — an car loan, auto insurance, rent, utilities, childcare, food and student debts — were overwhelming. "I had to make the decision between paying car notes and buying food,“ the 26-year-old single mom said. She defaulted on her 2010 Chevrolet Equinox loan and the SUV was repossessed. "I am considered someone who has higher education and still got behind." More than 7 million Americans are now at least three months delinquent on their auto loan payments, the benchmark for many lenders to trigger a repossession, and, experts say, that stat is setting off a bright red warning light. In fact, according to the Federal Reserve Bank of New York's report released Tuesday, the number of these … [Read more...] about Americans behind on car loan payments, economists fear recession
Susan Tompor Detroit Free Press Published 7:00 AM EST Jan 17, 2019 The North American International Auto Show in Detroit will once again give car lovers reasons to brave the crowds and the cold, such as a chance to see the 2020 Ford Shelby GT 500 in the steel flesh. But the auto show's backstory is clouded by potential economic stumbling blocks at every corner — ranging from pinched pocketbooks to stormy trading on Wall Street to a highly volatile trade war between the United States and China, among other countries. It's possible that "the auto business will create the next recession, not housing," Jonathan Smoke, chief economist for Cox Automotive, told a group of journalists gathered Sunday morning in Detroit for the auto show preview. The risks of a recession, which many including Smoke aren't forecasting for 2019, go up significantly if the trade war rages on and heavy tariffs disrupt the auto industry. An estimated 3 million to 4 million new car sales … [Read more...] about Recession, trade worries cloud the Detroit auto show
The Detroit News Published 11:55 PM EST Dec 31, 2018 Out with the old and in with the new doesn't quite fit Metro Detroit for 2019. The new year appears to be more of a transition period, as progress continues on major developments downtown. There isn't a glitzy arena opening or a skyscraper near completion. Motorists traveling over the Detroit River will still have to look to the Ambassador Bridge as the Gordie Howe International Bridge begins to take shape. For change, head west to Lansing, where a Democratic governor, attorney general and secretary of state take power. All eyes will be on Gov. Gretchen Whitmer and her work with the Republican-controlled Legislature. But many questions will likely be answered: Will Detroit finally show population gain? How will the new governor fix "the damn roads?" How will professional golf play out in its return to Detroit in June? Maybe 2019 should be greeted with a glass of whiskey from Two James instead … [Read more...] about 2019 in Michigan, Metro Detroit: What to expect
Sections SEARCH Skip to content Skip to site index Business Day Subscribe Log In Log In Today’s Paper Advertisement Supported by ByJack Ewing Oct. 26, 2018 President Trump has said he started a trade war to create jobs in America. But foreign carmakers that employ thousands of workers in the United States are gauging whether tariffs, the main weapon in that war, may compel them to shift jobs to, of all places, China. Carmakers’ early hopes that congressional Republicans who favor free trade could restrain Mr. Trump have faded. Instead, manufacturers are girding for a protracted period of conflict that will disrupt supply chains and change the companies’ calculations about where to expand and where to cut back. BMW, the largest exporter of cars from the United States, has already moved some production of its popular X3 sport utility vehicle — once made exclusively in Spartanburg, S.C. — to a factory … [Read more...] about Trump’s Trade War May Create New Auto Jobs. In China.