So reads a guest essay in today's NY Times. A bit of hyperbole perhaps but the warning signs are abundant. Here are some snippets.

"It happened very quickly — so fast that you might not have noticed it. Over the past few months, America’s Big Three automakers — Ford, General Motors and Stellantis, the oddly named company that owns Dodge, Chrysler and Jeep — landed in big trouble. I realize this may sound silly. Ford, General Motors and Stellantis made billions in profit last year, even after a lengthy strike by autoworkers, and all three companies are forecasting a big 2024. "

"The biggest threat to the Big Three comes from a new crop of Chinese automakers, especially BYD, which specialize in producing plug-in hybrid and fully electric vehicles. BYD’s growth is astounding: It sold three million electrified vehicles last year, more than any other company, and it now has enough production capacity in China to manufacture four million cars a year."

"BYD’s cars deliver great value at prices that beat anything coming out of the West. Earlier this month, BYD unveiled a plug-in hybrid that gets decent all-electric range and will retail for just over $11,000."

"The other looming problem for Ford and General Motors is that their balance sheets, while superficially robust, conceal a structural vulnerability. While the two companies have done generally well in recent years, their billions in profits have overwhelmingly flowed from selling a relatively small number of vehicles to a small group of people. Specifically, Ford and GM’s earnings rest primarily on selling pickup trucks, S.U.V.s and crossovers to affluent North Americans."

https://www.nytimes.com/2024/02/27/o...-vehicles.html