In 1870, when Nikolaus Otto and his partner Karl Benz independently developed their internal combustion engines, which were four-stroke at the time, Germany was placed on the map as the birthplace of modern autos and the history of German Automobiles had begun. That’s because in 2018 Beijing plans to introduce a carbon trading scheme, similar to California’s, that will force automakers with sales topping 50,000 to produce EVs locally. On the other side of the scenario is the fast-rising Japanese automaker – the Toyota Motor Corp. Let’s take a look at the current automotive climate and what the three automakers must do to win federal bailout approval. In December 2008, it received a $6 billion bailout from the Federal government. It is inevitable that the new players will induce more severe competitions in the US market.
While Ford had some bright spots with its pricing and retail truck sales, it can’t offset the fact that the automaker’s market share last month was the lowest it’s been since September 2008. Automakers have been happy to oblige, with a wave of small cars hitting the scene in recent years and even more to follow. Ford has said it’s just the fifth-largest producer of vehicles in Mexico while it’s the top automotive manufacturer in the U.S. The company said it’s added nearly 28,000 jobs in the U.S. over the past five years. Connecticut is set to receive $1.49 million from a multi-state settlement with automakers Hyundai and Kia. However, 71% of Volvo’s cars are recalled for dire consequences, the lowest of any automaker.
And because of Germany being extremely reticent when trying to develop its automotive industry, they opened the floodgates for American automobile manufacturers like General Motors who bought out German automaker Opel and Ford Motor Company who possessed a very successful subsidiary in Germany.
Although it’s just behind Lincoln, Honda can still lay claim to having the highest satisfaction of any Japanese automaker. Today’s automotive bosses have private jets to whisk them back and forth, a source of contention for many who oppose helping the automakers. That joint venture will be key to Volkswagen, which consistently battles General Motors to be the best-selling foreign automaker in China, meeting the country’s increasingly strict emissions regulations – as well as creating a greener image.
The healthy — or perhaps unhealthy — assumption in the industry is that significantly higher EV demand will materialize in the future, making electric cars into something other than a compliance effort (automakers building EVs to satisfy government requirements rather than to capture consumer spending).