In Case You Missed It: Executive Session with John MurphyApril 21, 2021
Catalyzed by the COVID-19 pandemic, Murphy says that while the U.S. automotive cycle may have hit a trough in 2020, sales have made a remarkable V-shaped recovery since mid-2020. Other dynamics have contributed to a stable, yet uncertain market, and some bumps are expected in the short-term with a four-to-five-year window of recovery to 17 to 18 million units. China and the U.S. are outpacing Europe in terms of recovery, but ongoing supply chain disruptions could contribute to a downward slide in global production and sales this year, with a likely recovery in 2022 and beyond.
Despite uncertainty, OEMs are demonstrating a commitment to product activity for development of new electric vehicles (EV) and crossover utility vehicle (CUV) models. These product efforts are increasingly directed towards powertrain advancement, with a surge in EV model launches by both incumbents and new automakers. Within the forecast horizon, it is expected that 50% of powertrains will be internal combustion engines (ICE), with the growth of EVs, hybrids, and fuel cell options.
Now is a pivotal point in the automotive industry and companies must remain diligent in optimizing their core business, while also investing in the future to ensure long-term sustainability and market position in the face of emerging auto-tech companies.