Day: June 1, 2020

Automotive Industry Eyes Slow Recovery

After a long-winded lockdown, U.S. auto-manufacturers are finally reopening. 

The move to reopen comes with debate, however; for example, Tesla Inc (NASDAQ: TSLA) CEO, Elon Musk, sued Alameda County, California and threatened to move the company’s headquarters to another state after he encountered resistance against a decision to restart assembly.

Now that most other U.S. carmakers such as General Motors Company (NYSE: GM), Ford Motor Company (NYSE: F), and Fiat Chrysler Automobiles N.V. (NYSE: FCAU) are returning, sights are back on the supply and demand dynamics of the recovering market.

The following is a look at the challenges that lie ahead. 

Pandemic Deals A Heavy Blow

From 2.62 million units in February, U.S. car production in March dropped to 1.7 million, with European output falling at least 1.2 million by late April.

The WTO estimated that U.S. auto sales were almost 40% off in March after 

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