You know things are getting bad when executives at Porsche and Tesla complain about the current state of the economy. Leaders at the two premium brands have recently railed on inflation and interest rates as they’re starting to realize both have taken the wind out of car sales.
It wasn’t that long ago GM warned the Biden Administration’s plan could cause serious economic pain.
Porsche CFO Lutz Meschke recently told reporters that high interest rates set by governments are cooling down buyer interest. Shocker. Meanwhile, Tesla CEO Elon Musk used his company’s Q3 earnings conference call to complain about the same problem, as covered recently by Yahoo Finance.
A year or so ago when the poors were complaining about crushing grocery bills, insurance, housing payments, etc. these people were silent. But now that the economic pressure is getting to them it’s time to sound the alarms and start making sweeping changes?
Apparently, things are only a panic situation when Tesla and Porsche sales take a dive, not when young families have to start choosing which meal to skip. It’s hard to feel sorry for these people when they couldn’t bother to shed a tear back when the less-affluent members of society were being crushed by inflation spurred by monetary policy.
There’s been another huge shift that has these automakers reeling. The Chinese market is starting to wall itself off from foreign influence, something we’ve warned about before. Instead of leaving on their terms, these companies decided to play ball with an authoritarian communist regime and whine when they got burned. Again, it’s difficult to feel sorry for them, especially when they sold out the West to make a buck or a Yuan.
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