Most of our current car parts, and even cars, seem to be made in Mexico and China. Both countries are now pushing to enter the basic car market, taking advantage of the fact that gasoline is a legacy technology, and US companies have sunk capital into making gasoline cars.
Will this spell the end of the big US automakers and maybe even the Japanese and German ones?
If the US doesn’t move to electric, yes. Gasoline is problematic not just owing to the climate, but politically (well the climate is political). So many of the conflicts going on are behind oil and it isn’t even the most advanced or productive way to do things, of course capitalism is about power not efficiency so…. Oil was the disrupting technology of the 20th century. Not so much cars but oil — now that is over. Though owing to many factors I don’t see Germany and Japan being uncompetitive in this new model.
Firms based in Germany and Japan will continue to be competitive owing to Anwar Shaikh theory of real competition.
Thankfully Germany is under a parliamentary system and Merz and his Alternative for Germany . Without a coalition will have little motivation to join the US in its shift hard rightward — hopefully.
Here is the question of the day. China and Russia have for the last half of the 20th century been cozy with Russia will they now be cozy with the EU? If China works with the EU against the US Russia alliance then this could get interesting. Will China become Mexico’s partner? I don’t want to think too hard on this — hopefully 2026 and then 2028 this situation will sort itself out….lol….or not.