The automotive industry has been a cornerstone of Western economic power for decades, but a recent series of articles has highlighted the alarming decline of this sector. The focus of these articles is on New Energy Vehicles (NEVs), which have become increasingly important in the global market. In the first article, the focus was on Electric Vehicles (EVs), and now the second article explores the theme of NEVs and whether the West can avoid a similar crisis to that experienced by Nokia in the early 2000s.
The rapidity of change in the automotive industry is evident in the recent growth of Battery Electric Vehicle semi-truck trailers. This trend is likely to continue, with China leading the way in terms of technological innovation and adoption. The West, on the other hand, seems to be lagging behind, with Japan withdrawing from almost all major STEM arenas and the US struggling to compete in the field of NEVs.
The decline of the automotive industry in the West is not just a technical issue, but also a sociological one. The US is now run by fear of deportation and actively campaigns against NEVs, which is a narrow-minded approach that ignores the benefits of sustainability technology. Europe is struggling to cohere and has no cloud capital, making it vulnerable to external influences.
The USA's claims to fame are rapidly disappearing, with the dollar in decline as an international exchange system and manufacturing might being subverted into shareholder returns, derivatives, cryptos, and share buybacks. The country is also deteriorating rapidly into authoritarianism and inequality, with falling education and life expectancy rates.
All major economies in Europe, like the US and Japan, are around a 100% debt-to-GDP ratio, which is a warning sign of economic instability. Australia is an exception, with a debt-to-GDP ratio of around 50%. The West has lost its technological hegemony in 66 of 74 key technological arenas, and the US has lost its economic and social hegemony.
The rapid pace of change is forcing companies to rethink their strategies and adapt to new technologies. However, this requires significant investment and a willingness to take risks, which may not be available to all companies. The West's failure to grasp technological change has left it struggling to keep up with China and other emerging economies.
The global economy is facing significant challenges, including supply vulnerabilities originating in the Middle East that could force a realisation that ICE vehicles can be held hostage to international vicissitudes. Prices of up to $4aud/L are being bandied around, which would make travelling 100,000 km four times as costly in an ICE vehicle than an EV.
The West's automotive industry is facing a crisis of confidence and capability, with the US and Europe struggling to compete with China and other emerging economies. The recent growth of Battery Electric Vehicle semi-truck trailers is just one example of the rapid pace of change that is leaving the West behind.
As the world moves towards a more sustainable future, the automotive industry will play a critical role in shaping this transition. However, the West's failure to grasp technological change has left it struggling to keep up with China and other emerging economies, and it remains to be seen whether the West can avoid a similar crisis to that experienced by Nokia in the early 2000s.
The rapid pace of technological change is leaving the West struggling to keep up with China and other emerging economies.
