The Times They Are A-Changin'

Things are changing rapidly in the automotive industry. There are some 'disruptor factors' that are shaking things up. These have the potential to create a vastly different landscape from what we have now. 

To start off with one fizzer. We were all supposed to be in self drive cars by now but the intractable challenges that this has presented were massively underestimated and for now, it's been nothing but a money wasting exercise for many. 

One more real one is how cars are powered. Legislation pushing the industry away from fossil fuels has forced manufacturers into making electric cars but it's been costly and generally unprofitable. That there has not been a unified global implementation of incentives means it's been disruptive and yet not that effective. But it is still giving industry leaders some headaches as they try to balance these new issues. 

The biggest issue presently is the swift rise of the Chinese automotive industry. It is aggressive and some have claimed that unfair advantages are being used to achieve swift success. I'd call it short sighted foolishness as things that happen too quickly will create a negative reaction as it is too disruptive and damaging. 

One surprising development is the Honda-Nissan-Mitsubishi merger. It will take some careful decision making if it is to be successful as there are some issues such as Nissan's poor financial situation to be dealt with effectively. Honda has always been an independently minded company so they are taking China's disruption seriously. They may have also been persuaded into doing it as a move in the best interests of Japanese industry.

It will also mean that Renault's involvement with Nissan and Mitsubishi will surely be scaled back or terminated. Nissan wasn't happy with the power Renault had in that alliance so no tears will be shed on their part. I wonder what Renault is thinking?

With many car manufacturers struggling with profit downturns and reduced global market share, tough decisions have to be made. Greater cooperation between companies will surely happen and even mergers such as the one mentioned. There is no doubt that the times they are a-changin'.