The state of the auto industry is what everyone is talking about right now but some auto experts say this type of restructuring is expected.
Michael Robinet is managing director of Automotive Advisory for IHS Markit.
He asked, “Are they ready for the challenges coming forward?”
That’s the big question facing car companies, he said.
“Our industry has been going through change, sometimes quiet, sometimes violent for decades,” Robinet said.
Which is why Rhe says the announcements made by GM and Ford come as no surprise. General Motors is closing down plants and slashing jobs.
While Ford says it’s is shuffling workers at several factories to increase production for their full-size SUVs, like the Lincoln Navigators and Ford Expeditions
No layoffs are expected.
This comes after Ford offered early retirement buyouts to some employees earlier this year.
Robinet says the trends show more drivers want cross-overs and bigger SUV’s, instead of sedans. Combine that with future emission standards, and changes are unavoidable.
“So you’re going to have to employ new technology, some of it is electrification, some of it is better usage of current powertrains engines and transmissions,” Robinet said.
Overall, Robinet isn’t surprised by a restructuring phase, that could be healthy for car companies.
“These are to be expected as you continue to right-size and sort of right-capable your workforce,” he said.