Legacy waited too long, sure that their 100 year way of doing things was The Way. They were sure they could catch up fast, as long as Uncle Sugar pitched in a few billions. Turns out they were wrong.,
1. You cant convert legacy plants to make EVS efficiently.
2. You cant just build a battery plant in two years and go to town. Well, they cant.
3. You cant source the raw materials for production and that fast either, no matter how much money you throw at the problem.
4. You cant compete with direct sales when your dealerships are mainly a huge drag on your reputation, have customer happiness scores alomst as low as Congress.
5. Having a unionized labor force builds inertia into everything you do.
Can they survive? I really don't see how. Its not that you cant make money making EVs, its just that you cant make money making EVs the same old way.
Big 3 American Auto manufacturer stats (information from most recent financials publicly available) | | | |
| Ford | GM | Tesla |
Total Long Term Debt | $140 Billion | $115 Billion | $5 Billion |
Market Cap | $48.23 Billion | $50.93 Billion | $548 Billion |
Total Sales | $158 Billion | $156 Billion | $81 Billion |
Cash Available | $44 Billion | $31 Billion | $22 Billion |
Debt Minus Cash | $94 Billion | $84 Billion | $17 Billion SURPLUS in Cash |