What We Expect for the Automotive Industry After COVID-19

We expect the automotive industry’s recovery from pandemic-driven lows to begin in earnest in 2021. After U.S. light-vehicle sales came in far below forecast in 2020 (14.6 million compared with our initial prepandemic estimate of 16.5 million), we expect about a low-double-digit percentage increase to 16.0 million-16.2 million in 2021.

Though some of the automakers that we expect to play the biggest roles in this recovery do not have moats (such as General Motors (GM), Toyota (TM), and Volkswagen (VWAPY), we believe that there is value to be found elsewhere in the automotive industry, such as in suppliers–particularly Adient (ADNT) and BorgWarner (BWA).

We cover these forecasts and other trends shaping the automotive industry in our annual “Moats, Motors, and Markets” report. Here, we take a closer look at our findings from each of those three aspects: moats, motors, and markets.

What We Expect

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Managing Data Privacy in the COVID-19 Environment

Last year, the COVID-19 pandemic brought about a global market disruption across multiple industries, and manufacturers expect the pandemic to continue to affect the automotive industry through 2021. The pandemic has not slowed the technological innovations in the industry or the pace of increasing regulation affecting data privacy and security. In the midst of the pandemic, we saw significant changes to the privacy landscape, including a steady rise in California Consumer Privacy Act (the CCPA) litigation by private citizens, a successful ballot measure amending the CCPA to include significant new obligations for companies that often mirror those of the European General Data Protection Act (GDPR), and a major decision from the Court of Justice of the European Union in the so-called “Schrems II” impacting personal data transfers between the EU and the U.S., all of which impacts the automotive industry. As we have seen in recent years, consumer demand is

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How the COVID-19 pandemic is changing the automotive industry in the U.S.

buying a car
(© Kurhan –

A few years ago, no one would have imagined that a pandemic would hit the world so hard that even the economies of wealthy countries would be significantly affected. Industries are finding ways to still thrive despite the surge in COVID-19 cases across the globe. With travel restrictions and partial or total lockdowns, the United States’ automotive industry has gone through many changes and adjustments.

Although overwhelmed by the pressure of supply and demand disruption, companies are stepping up to the challenge created by the COVID-19 pandemic by finding ways to

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After COVID-19 passes, we must keep making personal protective equipment in America

If we have learned anything from the COVID-19 crisis, it must be that America can no longer abrogate the production of personal protective equipment to China or any other foreign manufacturer. The only way to assure our first responders’ and healthcare frontline workers’ safety is to have a plentiful supply of PPE stored and ready to be deployed on a moment’s notice.

This story is personal to me. Only seven months ago we transitioned a portion of our manufacturing from non-woven fabric for the automotive and bedding industries to a line of PPE fabric. Today, we produce 4 million yards of PPE material each month. We currently we have no intention of switching back.

I started in this business straight out of college; my father was in the apparel industry and my grandfather before him. I remember the days of garment racks being pushed down the streets of New York

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