RIP: Legacy Auto is Dead
Legacy auto is going to enter the graveyard. It will likely be delayed by bailouts from governments but that is their destination.
In this video I discuss what is taking place and how the negotiations with the UAW is all but ensuring the death of these companies. Of course, the dealerships are another problem that few are talking about yet legacy auto has to deal with.
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It will go eventually, but it's not taking over quite yet. Again I drove across the country, this time in an e-hybrid and couldn't find a single EV connection anywhere. I wanted to test it out to see how it would work with both. Although the gas side of things was great. I was getting like 31-32 MPG on the highway so that saved me some money. I would have totally sat and slept while I charged, again if I could have found an EV hookup...
That is true. However, we are seeing the EVs are growing at a pace of about 20% per year. So in about 5 years, we are going to see things vastly different.
Yeah I am sure now that just about all of the makers have EVs. I still like the hybrid option over full on EV.
Summary:
In this video, Taskmaster4450 predicts the decline of Legacy Auto companies in the face of the growing electric vehicle (EV) market. He emphasizes the significant advantage that companies like Tesla have due to their ability to offer stock options to employees, unlike Legacy Auto companies that rely on traditional salaries. Taskmaster4450 also mentions the impact of factors like union negotiations, Tesla's production goals, and the rise of EV manufacturers like BYD and Rivian. Overall, he suggests that Legacy Auto companies are struggling to adapt to the changing automotive landscape and are at risk of losing market share.
Detailed Article:
Taskmaster4450 starts the video by confidently stating that it is "game over for Legacy Auto," asserting that in the next few years, the competition with EV manufacturers will not be a contest. He highlights that the only thing currently preserving Legacy Auto companies is the constrained production of EVs. Taskmaster4450 mentions the recent records set by companies like BYD and Tesla, predicting Tesla's production numbers and their trajectory towards 1.8 million units, potentially reaching 2.5-2.6 million by 2024.
The discussion shifts to the impact of union negotiations on Legacy Auto companies, particularly citing General Motors' concessions on batteries. Taskmaster4450 criticizes the management of these companies, singling out Mary Barra and referring to her as a "con artist." He suggests that the transition to EVs and direct-to-customer sales is a challenge that Legacy Auto companies are ill-equipped to handle, putting them at a significant disadvantage.
One of the key arguments put forth by Taskmaster4450 is the disparity in employee compensation between Legacy Auto and companies like Tesla, emphasizing the importance of stock options as a motivator for employees. He explains how Tesla's stock options offer a financial benefit to employees without impacting the company's revenues directly, in contrast to traditional salary payments.
Taskmaster4450 then delves into the global market dynamics, mentioning the competition from Chinese and European EV manufacturers encroaching on Legacy Auto territory. He notes Tesla's increasing sales in North America, along with the entrance of Rivian and the upcoming Cybertruck in the pickup truck market, posing a threat to Legacy Auto's dominance. He ends the video with a statement about the diminishing market share of Legacy Auto companies due to the rise of EV manufacturers.
In conclusion, Taskmaster4450's analysis paints a grim future for Legacy Auto companies, attributing their downfall to their inability to adapt to the changing automotive landscape dominated by EVs and innovative business models like Tesla's stock options for employees. The detailed breakdown provided valuable insights into the various factors contributing to this industry disruption and the potential consequences for Legacy Auto companies.
Notice: This is an AI-generated summary based on a transcript of the video. The summarization of the videos in this channel was requested/approved by the channel owner.