By the 1980s, Detroit’s once titanic carmakers were being upended by rivals from Japan. Ford, General Motors and Chrysler had grown rich selling gas guzzlers, but when oil prices rose and suddenly cheap, fuel-efficient Japanese models looked attractive, they were unprepared. The collapse in sales led to hundreds of thousands of job losses in the automotive heartland of the US.
Now western car manufacturers are making what one former boss calls a similar “profound strategic mistake” as they pull back from electric vehicles (EVs) and refocus on the combustion engine just as oil prices are soaring once again. Experts say the industry’s future – and that of tens of millions of jobs – could be on the line. This time, however, the threat is from China.
