Car news

carbusiness

German Parliament suggesting the idea to forbid sale of internal combustion engines cars by 2020; Google, Apple, Uber looking at self driving cars; millennials without driving license; Fiat Chrysler testing Amazon for distribution (30% discount on label price, even if it is the same discount you would normally get, the move is relevant).

Car business is not just its factories (roughly 30% of end price), as we are seeing it is also distribution (about 30% of end price), finance, but at the end we have the accessories linked to it like insurance, used space (still and in motion), …

Something is changing fast, the number of players, for a market organized as it still is, is still too large.

Weak economies and rising interest rates might push structural change soon. What is going to happen to low margin, low tech, low volume makers? Where is their residual value?

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