globalEDGE Blog - By Tag: automotive-industry

The electric vehicle market has been enormously increasing over the past decade. Large companies such as the Chinese BYD and the American Tesla focus solely on EV production and have become some of the largest companies in the world. At the same time, most other large automotive companies have set lofty EV production goals for the near future.

The electric vehicle market is headlining global economic change. Trade tensions are on the rise between Western nations and China as the competition heats up. In recent months, Canada, the United States, and the European Union have all announced significant tariffs on Chinese-made EVs, aiming to protect domestic industries from what they deem as unfair competition.

Paris’s recent decision to raise parking prices for SUVs and larger vehicles could lead to a significant decline in the global car industry but would specifically impact the United States. The starting price for parking in the inner city of Paris for a non-electric SUV weighing 1.6 tons or an electric SUV weighing 2 tons is 18 Euros (19.54 American Dollars) an hour. While the starting hourly price for smaller cars is only 6 Euros. But the increase in pricing doesn’t stop there; after 2 hours of parking, the prices rise even more. For those looking to spend a day in the city, a six-hour parking rate for an SUV driver will cost you 225 euros compared to the regular rate of 75 euros.

Startups like Rivian Automotive and Lucid Group have faced complex challenges in the evolving electronic vehicle (EV) manufacturing field. These businesses, formerly commended for their industry-leading inventiveness and adaptability, now must deal with the challenge of producing and selling automobiles.

Economic recessions are one of many phenomena difficult to avoid. As unsettling as they are, many countries around the world are currently going through a recession now. Understanding the causes and potential impacts of a downturn and taking proactive steps is essential to navigating our fast-paced global economy.

Intense labor movements have been making global headlines recently; you might be aware of the strikes in Hollywood and the film industry, but let’s shift gears to the Three Giants and United Auto Workers (UAW). UAW has taken a bold stand against automotive giants - General Motors, Stellantis, and Ford. Select plants of these powerhouse companies are facing targeted strikes, all unfolding after the union’s contracts expired two weeks ago.

The influence sustainability has on the global market is rapidly increasing. As more and more people value the environmental impacts of their purchases, demand for sustainable fashion is quickly increasing. Companies that incorporate sustainable initiatives into their products have the potential to grow significantly in the near future. As of 2022, 78% of consumers in the Netherlands incorporate sustainability into their purchasing decisions. Additionally, younger generations value sustainable products more than earlier generations, with Generation Z valuing them the highest. 75% of Generation Z value buying sustainable products over purchasing name-brand products.

In 2022, electric vehicles will become mainstream - we will see more on the roads daily. 2023 may see a significant increase in the production of these cars, even though 2022 did present lower sales. We saw high-interest rates and market instability in the past year, which impacted electric vehicle sales. The rising cost of batteries and shortages of critical materials also drove electric vehicle sales down.

Within the past decade, there has been a rapid increase in innovation across the automotive industry. Many of these innovations are encouraging automotive companies to put millions of dollars into research and development of electric vehicle technology, self-driving capabilities, and automotive software improvements. Many automotive giants, such as the big three U.S. manufacturers, Ford, General Motors, and Stellantis, are competing to release the most cutting-edge battery technology.

European Union lawmakers and member countries reached a deal to ban the sale of new gasoline and diesel cars and vans by 2035. It would effectively prohibit the sale of new cars and vans powered by gasoline or diesel in the 27-nation bloc. The deal EU between negotiators was made on October 27and is the first agreement of the bloc's “Fit for 55" package, which the bloc's European Commission set up to achieve the goal of cutting greenhouse gas emissions by 55% over this decade. Under the deal, carmakers are required to reduce the emissions of new cars sold by 55% in 2030 compared to 2021, leading to a 100% cut five years later. The European Parliament and member states must formally approve the agreement before it is put into action.

If you haven't already heard of Rivian, now is the time to learn. Rivian is an electric vehicle automaker backed by Amazon and Ford, that promises far more range per battery charge than existing electric cars. Rivian targets fans of outdoor activities and has been investing in charging stations at remote off-road destinations. This company is setting an example for how to care for the environment by making decisions that revolve around preserving the environment for future generations.

As the global climate change crisis continues to become an increasing focus for government policy and corporate social responsibility, automotive manufacturers around the world are increasing the production and research of electric vehicles (EVs). EV sales, as a percentage of global automotive sales, have grown from 0.6% in 2015 to 2.5% in 2019. As sales of EVs are increasing, consumers are expecting increasing improvements to EV technologies. Some of the largest issues currently affecting EV development are range, charging speed, and safety. Currently, the average range of an EV on the road today is about 197 miles. Often for consumers, this range is not enough regarding the average range of a traditional combustion engine car. 

Having survived the COVID-19 pandemic, many countries are looking to strengthen their security measures by controlling private information, namely the Chinese and American governments. Throughout 2020, the United States government attempted to ban the controversial app “Tik Tok” from platforms like the App Store on Apple devices because of its former ties to China. Similarly, the Chinese government is now restricting the use of Tesla’s vehicles by military and state employees as a result of privacy concerns of their own. With back and forth blows struck between the two countries, an international privacy war could be looming on the horizon.

The pandemic has led to millions of people relying on technology more than ever. From phones to laptops to televisions and much more, technology has become the center of our lives over the last year. One thing that all modern technology has in common is the use of microchips. Microchips help with memory, logic, and functionality in electronic devices. The increase in demand for different forms of technology has finally caught up to microchip suppliers, and now multiple industries are facing shortages and shutdowns.

Electric vehicles have been around since the late 1800s, but they have only recently been discussed as the next big thing in the automotive industry. With increasing performance and technology improvements, government support, and lower production costs, electric vehicles are expected to have a huge impact on the industry in the coming decades.

Fiat Chrysler and Peugeot S.A. (PSA) announced back on December 18, 2019, that they had agreed to the terms of a merger that is now coming to fruition. The new company will be called Stellantis and will be selling Alfa Romeo, Dodge muscle cars, Fiat, Jeep, Maserati, Opel and Vauxhall, Peugeot and Citroën, and Ram Trucks. With PSA being the largest automaker in France and Fiat Chrysler being the third-largest based in the United States, after the merger, Stellantis will become the world’s fourth-largest automaker following the Renault-Nissan-Mitsubishi Alliance, Toyota, and Volkswagen Group.

As the world progresses into more and more technological advances, electric vehicles are a growing industry with amazing potential. Benefits ranging from financial savings to reduced carbon emissions are catalyzing electric vehicle commercial fleets to emerge as an intelligent transition to be made.

Throughout the past six months, the coronavirus has impacted almost every industry around the globe. Whether those industries are small or large, very few have excelled financially when discussing this year’s success. Nevertheless, through recent announcements and quarterly financial reports, it appears that we may begin to see some economic upturn for the global automakers.

The United States is stagnant, with a limited number of individuals able to work and minute numbers leaving their homes.  Due to COVID-19, industries are taking a hit.  However, for the automotive industry, things are beginning to look up. In China, factories are attempting to restart their operations but with precautions. The automakers are checking employees for virus telltale fever, barring visitors, as well as having employees stay home if they have been in Wuhan, the city at the center of the outbreak. Employees who can sufficiently work from home are still suggested to do so.

In the wake of the pandemic and desperate times, governments throughout the world have turned to automakers with the hope of increasing the global ventilator supply. As auto factories continue to stop making cars, the general public clamors for the transition to ventilators with hospitals, more specifically ICU wards across the globe, feeling the mounting pressure of increasing patients ill with coronavirus.

With growing concern for the environment, electric vehicles have taken up a strong position in the automotive market. Electric vehicles offer consumers little maintenance, a quiet and fast ride, and most importantly, no toxic fumes. China has become the quickest to adopt the new technology; over 70 percent of consumers reported that they would consider an electric vehicle for their next purchase.

Over the past 10 years, advances in technology have led to economic growth as well as stability for many markets throughout the globe; however, one of the most exciting advances is still yet to come: the self-driving car. As tech companies continue to test and develop software that has the ability to control a car’s every move, there are some implications that have sparked global issues. Three of the world’s four largest economies are involved in a debate caused by issues relating to consumer privacy, trade disputes, and business opportunities.

Since the financial crisis in 2008, Germany has been the leading economy in the European Union. Due to turmoil in the global economy and some negative internal forces, the historically strong and stable German economy is expected to experience low growth in 2019.

The food service industry is experiencing more changes than ever. Several decades ago, traditional food services were improved by food delivery apps. Now, a new method of food delivery is on the rise that will revolutionize this industry. Autonomous vehicles have been in the spotlight recently, from daily conversations to public debates. But who would have imagined for autonomous driving to step into the food industry first? Currently, auto manufactures from around the world are partnering with small startups to deliver food and groceries.

Transportation has long been one of the most essential and transformative processes in society.  Today, e-commerce, fast-paced business environments, and a focus on improving logistics thrust transportation into the spotlight as a necessary day-to-day operation and the main form in which these actions are carried out is automation.  Cars have a wide variety of human uses, from picking up children from school, to moving perishable goods across land, to clearing snowy roads efficiently.  Because of this, the automotive industry continues to be one of the largest and most talked about markets on Earth.

It is very likely that you will soon witness a self-driving truck next to you on the highway. The world keeps taking a step further into the tech field, sparking innovative solutions for automotive companies. The automotive industry is highly competitive and many automotive companies are working very hard to stay ahead and take part in one of the greatest advancements in trucks.

Automotive manufacturers across the globe are investing in electric vehicles and its accompanying technology at unprecedented levels. Just this week, Detroit based General Motors announced plans to introduce two more electric vehicles in the United States over the next year 18 months and 20 vehicles globally in the next six years. Not to be outdone, cross-town automotive competitor, Ford Motor Company, disclosed that they had formed a new team, dubbed “Team Edison”, to help direct investments toward new electrified vehicles expected in the coming years. This trend is not unique to the U.S. German auto manufacturer, Volkswagen, recently stated that they plan to invest $83 billion worldwide into rolling out 300 electric vehicle models by 2030. This investment is a marks a major shift in strategy, as VW was firmly committed to diesel fuel technology prior to their 2015 emissions scandal. Toyota, Nissan, and Mercedes-Benz have also announced plans to increase production of electric vehicles, either themselves or through joint ventures with other manufacturers.

Driverless, or autonomous, cars have been in the news a lot this past year.  Essentially it is a car that can drive itself with no help needed from a human driver.  There are many people who believe this is the next big development in the automotive industry.  We are still several years off from driverless cars being fully implemented on the road. According to a plan laid out in the U.K. last year driverless cars are to be implemented fully and on the road by 2025.