The first went: the auto industry is leaving the Old World
- October 18, 2022
- 0
Think of the sun – here’s a ray. Before we had time to assess the prospects of the German car industry in Europe, the manufacturers took the first
Think of the sun – here’s a ray. Before we had time to assess the prospects of the German car industry in Europe, the manufacturers took the first steps: BMW is moving electric vehicle production from the UK to China. And this, experts at the AvtoVzglyad portal are sure, is just the first sign of the mass exodus of European automakers from the Old World.
Automotive manufacturing is a high-margin but also high-cost business. To get the car off the assembly line, it is not enough to have skilled hands and an intelligent business plan. It requires a huge number of supporting industries, well-established logistics and, of course, a monstrous amount of electricity. And with the latter in Europe it is not easy now.
For example, Britain lost not only the monarch and the prime minister this year, but also the calm: electricity bills beat all records and the population is not going to pay them. But these are households for whom they are trying to sweeten the pill so that people don’t take to the streets. There is nothing to say about the enterprises!
What can withstand the repeated shortage of electricity by the once-powerful French car industry? France has recently exported electricity, but the reactors, which have not yet reached the “green agenda”, are starting to fail from old age. There seems to be gas but it got quiet in the sockets. Radish horseradish is not sweeter.
Germany, in desperation, “grabbed the head” and allocated no less than 200 billion euros to pay off the consequences of the “gas apocalypse”, but this also did not help. According to The Times, BMW will move production of electric minivans from the UK to China. And this is just the beginning of a great movement that will soon take over all of Europe. Mathematics is not a statistic, debit with credit clearly show trends here.
Major manufacturers of “sideburns” and “loose” are also preparing for closure: to make a light bulb, a battery and moreover tires, electricity is needed in industrial volumes, but they cannot supply it. Breaking the chain, even the ability to stop the conveyor belt, sometimes leads to bankruptcy. There would be a “thick”, but the pandemic took everything. Have not risen yet, the state cannot give every industrialist a loan. And this means a forced search for new manufacturers, negotiations, assembly line adjustments, trial batches and building supply chains. Years of work.
In the last century, Arthur Haley wrote in his novel review of the automotive world “Wheels” that a price increase of one node by ten cents leads to a multi-thousandth increase in the price of the finished product. This effect is called industrial inflation, and by today’s most conservative estimates in the Old World, it is over 30%. Simply put, it is no longer profitable to build cars in Europe: they will cost a lot, and there is simply no one to buy them, people are tightening their belts and figuring out which of the lights to turn on. I would only live with the renewal of the family and business fleet.
The complex business that the auto industry has without any “but” is based on long-term calculations and forecasts, profits are not calculated on an annual basis, but on a horizon of five or even ten years, so the owners and shareholders thought carefully about the prospects of their company. And it seems they came to an unequivocal conclusion: we need to move to a place where the sun is brighter and the grass is greener. In the US, in China, and, what the hell isn’t kidding, in Russia. There are not so many options in modern reality. Such a “relocation” costs a lot, both financially and in terms of image, but there is no choice. Bankruptcy is the alternative.
Photo by globallookpress.com
Automotive manufacturing is a high-margin but also high-cost business. To get the car off the assembly line, it is not enough to have skilled hands and an intelligent business plan. It requires a huge number of supporting industries, well-established logistics and, of course, a monstrous amount of electricity. And with the latter in Europe it is not easy now.
For example, Britain lost not only the monarch and the prime minister this year, but also the calm: electricity bills beat all records and the population is not going to pay them. But these are households for whom they are trying to sweeten the pill so that people don’t take to the streets. There is nothing to say about the enterprises!
What can withstand the repeated shortage of electricity by the once-powerful French car industry? France has recently exported electricity, but the reactors, which have not yet reached the “green agenda”, are starting to fail from old age. There seems to be gas but it got quiet in the sockets. Radish horseradish is not sweeter.
Germany, in desperation, “grabbed the head” and allocated no less than 200 billion euros to pay off the consequences of the “gas apocalypse”, but this also did not help. According to The Times, BMW will move production of electric minivans from the UK to China. And this is just the beginning of a great movement that will soon take over all of Europe. Mathematics is not a statistic, debit with credit clearly show trends here.
Major manufacturers of “sideburns” and “loose” are also preparing for closure: to make a light bulb, a battery and moreover tires, electricity is needed in industrial volumes, but they cannot supply it. Breaking the chain, even the ability to stop the conveyor belt, sometimes leads to bankruptcy. There would be a “thick”, but the pandemic took everything. Have not risen yet, the state cannot give every industrialist a loan. And this means a forced search for new manufacturers, negotiations, assembly line adjustments, trial batches and building supply chains. Years of work.
In the last century, Arthur Haley wrote in his novel review of the automotive world “Wheels” that a price increase of one node by ten cents leads to a multi-thousandth increase in the price of the finished product. This effect is called industrial inflation, and by today’s most conservative estimates in the Old World, it is over 30%. Simply put, it is no longer profitable to build cars in Europe: they will cost a lot, and there is simply no one to buy them, people are tightening their belts and figuring out which of the lights to turn on. I would only live with the renewal of the family and business fleet.
The complex business that the auto industry has without any “but” is based on long-term calculations and forecasts, profits are not calculated on an annual basis, but on a horizon of five or even ten years, so the owners and shareholders thought carefully about the prospects of their company. And it seems they came to an unequivocal conclusion: we need to move to a place where the sun is brighter and the grass is greener. In the US, in China, and, what the hell isn’t kidding, in Russia. There are not so many options in modern reality. Such a “relocation” costs a lot, both financially and in terms of image, but there is no choice. Bankruptcy is the alternative.
Source: Avto Vzglyad
I’m Sandra Torres, a passionate journalist and content creator. My specialty lies in covering the latest gadgets, trends and tech news for Div Bracket. With over 5 years of experience as a professional writer, I have built up an impressive portfolio of published works that showcase my expertise in this field.
