Elon Musk, who is set to co-head the newly formed Department of Governmental Efficiency (DOGE), has moderated his earlier pledge to cut the federal budget by $2 trillion. In a recent conversation with former Clinton pollster Mark Penn on X, Musk acknowledged that achieving even half that amount would be an “epic outcome.” This adjustment indicates a recognition of the practical challenges in achieving such dramatic fiscal goals, aligning more with expert critiques of his original proposal’s feasibility.

Bill Ford of Ford Motor Company provided insights into Trump’s understanding of the industry. After a lengthy conversation with Trump, Ford expressed optimism about the incoming administration’s grasp of the competitive landscape, particularly concerning the threat from heavily subsidized Chinese automakers. Ford emphasized that affordability, rather than just technological parity, will be crucial in competing with these rivals.

Moreover, Ford isn’t worried about Tesla, led by Musk, gaining an unfair advantage through its relationship with Trump. He believes that Ford will have a voice in policy discussions, suggesting a collaborative rather than competitive stance between American automakers in this new political climate.

Musk’s involvement in government efficiency suggests a push towards deregulation, potentially benefiting Tesla through the reduction of red tape, although this might conflict with Tesla’s financial interests in regulatory credits from other manufacturers.

The political landscape has also seen Musk extend his influence internationally. His critiques of European leaders and support for far-right movements in countries like Germany have stirred controversy, reflecting his significant sway in both domestic and international politics.

As we move into 2025, the interplay between Trump, Musk, and Ford will be pivotal in shaping the future of the American auto industry, balancing between innovation, economic policy, and international trade dynamics.

Article generated from corporate media reports.

The resultant company would be world’s third-largest automaker by sales, according to the report. On Monday the two companies announced they had signed a memorandum of understanding to integrate their businesses, with Mitsubishi Motors also joining the discussions.

Facing competition from EV leaders like Tesla and China’s BYD, Japanese automakers are uniting to cut costs and accelerate their transition to electric vehicles.

Honda’s president, Toshihiro Mibe, stated the companies plan to form a joint holding company, maintaining their brands while Honda leads management. A merger agreement is targeted for June, with the holding company expected to list on the Tokyo Stock Exchange by August 2026.

There is still to study and discuss, Mibe said. He commented: “Frankly speaking, the possibility of this not being implemented is not zero.”

“We have come to the realization that in order for both parties to be leaders in this mobility transformation, it is necessary to make a more bold change than a collaboration in specific areas,” he added.

AP writes that a potential merger between Honda, Nissan, and Mitsubishi could create an automotive giant valued at over $50 billion, helping them compete with industry leaders like Toyota and Volkswagen.

Toyota, which collaborates with Mazda and Subaru, produced 11.5 million vehicles in 2023, far surpassing the combined output of the three companies, which totaled about 8 million vehicles that year.

Reports earlier this month suggested Taiwan’s Foxconn was interested in acquiring Nissan shares from Renault, but Nissan CEO Makoto Uchida denied any direct approach from Foxconn, acknowledging the company’s “severe” situation.

Speculation had previously linked Foxconn to Nissan shares, but CEO Makoto Uchida denied contact and acknowledged Nissan’s financial struggles, the AP report says.

The merger aims to strengthen EV and software efforts, addressing global market shifts. Nissan, recovering from scandals and recent losses, has cut jobs and restructured under Uchida. Analysts highlight Honda’s potential benefits, including access to Nissan’s SUVs and EV expertise.

But the trend of China’s impact on the global auto market has been best characterized by this chart, published over the weekend, showing how Chinese car production has gone from 1% to 39% of global production in 20 years.

The rapid ascent was fueled by significant government investment, advancements in automation, and the growth of its domestic market, which is now the largest globally.

The NYT piece said that as domestic sales have slowed due to economic headwinds, China has increasingly turned to international markets to sell its cars, especially EVs.

Chinese brands like BYD have gained global recognition for offering advanced electric cars at highly competitive prices, exporting more EVs than any other country. Major markets include Europe, where compact models are popular, and Southeast Asia, where affordability drives demand.

We wrote back in November that China was even dethroning many of its long-rivaled Japanese competitors. Between 2019 and 2024, Japanese automakers experienced the steepest market share declines in China, Singapore, Thailand, Malaysia, and Indonesia, according to Bloomberg’s analysis of sales and registration data.

Japanese automakers aren’t just losing ground across Asian countries, with all six tracked by Bloomberg experiencing declines in China – but also globally as shown in the above chart.

Even Toyota, the global leader in car volume, has seen its sales stagnate. In Southeast Asia, a traditional stronghold for Japanese brands, market share has dropped sharply.

In Thailand and Singapore, Japanese carmakers now control just 35% of the market, down from over 50% in 2019, while streets once dominated by Nissan and Mazda are increasingly filled with Chinese brands.

China’s leadership in EVs is the result of over a decade of focused government support, including subsidies, tax breaks, low-interest loans, and heavy investment in battery technology.

Since 2009, over $230 billion has been funneled into the EV and battery sectors, the New York Times reported.

Chinese automakers also maintain a significant cost advantage over their global competitors. Cars made by Chinese companies cost roughly 30% less to assemble, largely due to control over the battery supply chain, lower labor costs, and more efficient production processes.

However, China’s dominance has raised concerns globally. Countries like the U.S. and the European Union have imposed tariffs on Chinese EVs, citing unfair subsidies and the potential threat to local industries. Despite these trade barriers, Chinese vehicles remain competitive because of their lower prices and comparable quality.

China’s heavy investment and technological edge position it to continue dominating the global auto market. Even with intensifying international pushback, its production capacity, cost advantages, and leadership in EV technology suggest that its influence will persist for years to come.

Recall just days ago we wrote that GM was taking a more than $5 billion charge and closing plants to address its declining business in China.

If you are old enough, you can still remember a time when many middle class families would purchase a new vehicle every few years.

Sadly, today most of us are being forced to get as much mileage out of our rapidly aging vehicles as we possibly can.  As a result, the average age of the passenger vehicles traveling America’s roads has reached an all-time record high…

This should be the best of times for the people who help keep America’s cars running.

There have never been as many on the road—around 290 million light vehicles—and they have never been so old. One reason for that is good news: They are better made. Getting the odometer past 100,000 miles has gone from being noteworthy to normal. Thirty years ago the average passenger car was about 8.4 years old and today that is 13.6 years.

Even keeping our aging vehicles repaired has become exceedingly difficult.

These days, if the mechanic hands you a repair bill for less than a thousand dollars that is a reason to celebrate.

In the old days, you could get a really nice used vehicle for a thousand dollars.

Of course groceries have become insanely expensive as well.  Earlier today, I came across a USA Today article that discussed the fact that the average household in Miami spends 327 dollars at the grocery store per trip…

Many longtime Miamians say they’ve felt this way since the pandemic transformed much of their city. As New Yorkers and Californians faced lockdown orders and restrictions, many flocked to Florida, with the largest increase of New Yorkers moving to Miami where they could benefit from tax and mandate breaks while working remotely. But along with having the largest net population gain of any state in the country came exploding living and housing costs. Housing prices have risen almost 50%, according to the UBS Global Real Estate Bubble Index released last month.

Grocery prices shot up. (An average household spent about $327 per trip). So did electric bills. A carton of eggs last year cost $5.

327 dollars used to be a lot of money.

Now it will just buy you one cart of food.

I warned my readers that the economic conditions that we were witnessing in Venezuela would eventually come here, and now it has happened.

As I discussed a few days ago, core consumer prices have actually risen for 53 months in a row. Our cost of living crisis is out of control, and there is no end in sight.

As they struggle to pay their bills, many Americans are turning to credit cards for some relief. As a result, credit card debt balances have soared to record high levels…

The average American household credit card balance as of the third quarter of 2024 was about $10,757 after adjusting for inflation, according to a new study.

The personal-finance website WalletHub onFriday released its new Credit Card Debt Study, which found that consumers added $21 billion in debt during the third quarter of 2024.

Early results for the fourth quarter of the year show preliminary data for October at a new record high for credit card debt in the month, in absolute terms.

As credit card debt levels rose, it was inevitable that more Americans would start getting behind on their payments, and that is precisely what has happened…

Are you feeling financially stressed as 2024 comes to a close? You’re not alone, not even close. In fact, 7.8 million Americans have delayed payments on at least one of their credit accounts this year. That’s a million more than in 2023.

This is really bad news for the economy as a whole, because our economy is highly dependent on consumer spending.

You can’t get blood from a stone, and restaurants all over the country are learning the hard way that most consumers simply cannot afford to eat out as regularly as they once did…

Seafood giant Red Lobster, Italian chain Buca di Beppo, fish taco eatery Rubio’s Coastal Grill and the owner of burger and pizza chains BurgerFi and Anthony’s Coal Fired Pizza are among those that have sought to reorganize through bankruptcy this year. Hooters of America is also huddling with lenders and advisers amid revenue declines, Bloomberg reported.

Shares of Dine Brands Global Inc., the parent of Applebee’s and IHOP, are down about 30% year-to-date, while shares of Bloomin’ Brands Inc., which owns Outback Steakhouse, dropped to near 2020 lows last month after it reported a decline in US same-store sales.

Yes, a “restaurant apocalypse” has begun.

When I first started using that term, a lot of people thought that I was exaggerating.

But of course I was not exaggerating one bit.

There was a time when it seemed like just about anyone in this nation could achieve “the American Dream” if they just worked hard enough.

But now we have reached a point where only 31 percent of Americans believe that they have “made it” in life…

Despite being the land of opportunity, the American Dream remains frustratingly out of reach for most Americans, with a mere 31% believing they’ve financially “made it” in life.

Sadly, that figure is even lower for Baby Boomers…

However, the picture becomes less optimistic with age. Only 27% of baby boomers feel they’ve reached financial success, and among those who haven’t, just one-third believe they ever will. The survey found that Americans consider their path to financial success threatened by various external factors, including presidential elections (46%), interest rate changes (45%), and the job market (42%).

After working so hard for so many years, only 27 percent of Baby Boomers feel like they have “made it” in life.

Well, that is quite depressing.

Things could have turned out far differently.  Many of us ranted and raved for years that things would turn out this way, but most of the country did not want to listen.

Bad decisions lead to bad results.

Our leaders have been making comically bad decisions for decades, and thanks to them we now have a complete and utter nightmare on our hands.

Michael’s new book entitled “Why” is available in paperback and for the Kindle on Amazon.com, and you can subscribe to his Substack newsletter at michaeltsnyder.substack.com.

China is the world’s largest car market and domestic brands are dominating with a surge of electric vehicles. Chinese companies are also expanding into Southeast Asia, challenging the long-standing dominance of brands like Toyota, Honda, and Mitsubishi, according to w new report by Bloomberg.

Between 2019 and 2024, Japanese automakers experienced the steepest market share declines in China, Singapore, Thailand, Malaysia, and Indonesia, according to Bloomberg’s analysis of sales and registration data.

Japanese automakers are losing ground across Asia, with all six tracked by Bloomberg experiencing declines in China. Even Toyota, the global leader in car volume, has seen its sales stagnate. In Southeast Asia, a traditional stronghold for Japanese brands, market share has dropped sharply.

In Thailand and Singapore, Japanese carmakers now control just 35% of the market, down from over 50% in 2019, while streets once dominated by Nissan and Mazda are increasingly filled with Chinese brands.

The Bloomberg profile notes that Toyota remains competitive in some segments, like pickups, but the broader outlook is troubling for automakers once renowned for efficiency and reliability. Their slow pivot to fully electric vehicles puts them at risk of falling behind in a market driven by advanced battery technology and smart software.

Although Chinese automakers face high tariffs in Europe and the U.S., the erosion of Japanese dominance in Asia could signal wider challenges ahead.

Toyota’s stronghold in Southeast Asia is supported by regional production of gasoline cars with larger engines, appealing to local preferences. In 2023, Thailand and Indonesia accounted for nearly 10% of Toyota’s 11 million global vehicle output. However, other Japanese brands, like Nissan, are struggling.

Nissan’s outdated lineup and lack of hybrids contributed to profit losses and production cuts, with its presence in Jakarta now fading.

Meanwhile, Chinese automaker BYD has rapidly gained traction in Indonesia, ranking as the sixth top-selling brand just months after delivering its first vehicles. Its $40,000 Seal EV is proving especially popular.

Japan’s global auto production share has dropped from over 20% two decades ago to 11%, while China has surged to dominate, now accounting for nearly 40% of worldwide car manufacturing. Chinese automakers are leveraging their expertise in low-cost batteries and flexible supply chains to expand into Southeast Asia, the Middle East, and Africa, further challenging Japan’s dominance in these markets.

In essence, they’re suggesting that the damage is done, the investments are made, so they need to somehow generate a return on those investments before Trump pulls the plug on the mandates.

A report by Brady Knox over at Washington Examiner, commenting on a NY Times article, suggests car companies may ask President Trump to keep Joe Biden’s rules in place for now:

According to a report from the New York Times, the Biden administration’s actions to boost domestic EV manufacturing may have already set the auto industry past the point of no return. Following Biden’s initiatives, automakers have already invested billions of dollars in transitioning to electric vehicles. If Trump were to scrap the initiative, major automakers fear they could be undercut by smaller manufacturers producing cheaper, internal combustion engine cars.

Three of the country’s largest automakers, Ford, General Motors, and Stellantis, are already lobbying Trump against scrapping the rules.

Some had hoped that one of the biggest proponents of electric cars, Tesla CEO Elon Musk, would be able to sway Trump to keep those rules in place, but now, his priorities seem to be cutting regulations. He expressed opposition to the $7,500 tax credit for buyers of electric cars, saying he opposes all subsidies.

“In my view, we should end all government subsidies, including those for E.V.’s, oil and gas,” Musk said last week.

Musk’s calculation was more cynical in a July earnings call, speculating that the end of the subsidy would hurt Tesla somewhat, but hurt its competitors much more.

Is it worth keeping the mandates so the big three U.S. automakers can prevent smaller competitors from eating their lunch?

Nope, Not Worth It

As horrible as the situation is for major U.S. automakers, keeping the mandates in place would be far worse. Americans need relief far more than automakers right now. Getting the price of vehicles down to a manageable level is crucial if America is going to have any chance of recovering from the financial decimation we’ve felt for the last four years.

But there’s actually a good business reason for pulling the mandates immediately. The Biden-Harris regime forced automakers to try to usher in a future that was too far off, but that doesn’t mean OPTIONAL electric vehicle adoption isn’t part of the future.

The damage has been done by the mandates, but there have also been significant investments into research and development that can flourish if they’re allowed to transition without government interference. In other words, they can return to internal combustion engines as the primary driver for now to get their revenues back while reducing costs for American consumers. Simultaneously, they’ll be expanding on what they’ve built in EV infrastructure, albeit without mandates forcing the issue. They’ll be able to work at the speed of the market instead of the mandates.

It’s a sour consolation for the biggest automakers because it means they’ll have to wait years or even decades to realize benefits from their electric vehicle investments, but the long-term returns should be worth the wait… if they can survive long enough to see them.

Rather than using the current rules to stifle competition, they should hope that President Trump immediately sides with the free market and the consumers to allow enough short-term benefit for U.S. automakers to recover.

VW’s profits fell 64% in the third quarter of 2024, driving the company’s share price to its lowest level since October 2010. Now, the world’s largest automaker by sales is looking to lower its expenses, with VW’s top labor leader announcing earlier this week that the company was aiming to shut at least three of its German factories, slash wages 10% and lay off thousands of employees.

“We’ve not forgotten how to build great cars, but the costs, specifically in our German operations and factories, are far from being competitive,” Chief Financial Officer Arno Antlitz told The Wall Street Journal Wednesday. “Things cannot continue as they are now.”

VW crisis is getting worse…

Volkswagen’s Q3 profit dropped a steep 64%, largely due to big losses in China. Their net profit fell from €4.34 billion last year to €1.57 billion, and revenue dipped to €78.5 billion. The group’s operating profit margin also shrank, while the… pic.twitter.com/CtumLnjXHW

— Bullion Bite (@bullionbite) October 30, 2024

VW’s profitability challenges come as consumer demand for EVs has weakened in recent years, with EV sales growing 50% in the first half of 2023 and 31% in the first half of 2024, far less than the 71% increase in the first half of 2022. As a result of this decline, the company walked back plans to sell shares in its EV business in January.

The automaker’s disappointing earnings also result from increased Chinese competition in the EV market, the WSJ reported. Deliveries in the Asian superpower fell 15% in the third quarter of 2024, largely due to lower-cost Chinese options such as BYD’s 2025 Seal EV.

VW’s cost-cutting plan would mark the first time the company has shuttered one of its German factories in its 87-year history, and has brought significant backlash from worker groups. Daniela Cavallo, head of VW’s works council, said tensions could “soon escalate” into a strike during a speech in Wolfsburg, Germany — the site of a VW factory that the company’s website describes as the “heart” of the brand.

“I’m confident that we’ll reach an agreement … but of course, I cannot rule out strikes,” Antlitz told the WSJ.

VW did not immediately respond to a request for comment.

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In an off-topic conversation, an audience member asked Musk why Tesla had not purchased the struggling EV competitor Rivian.

Musk responded:

“I wish them the best. I hope they do well. The car industry is a very difficult industry. There’s only two US car companies that haven’t gone bankrupt, and that’s Ford and Tesla. Rivian’s going to have a hard time. It’s insanely difficult to compete in the car industry. If it were not for two technology discontinuities, one being electrification and the other being autonomy, I think Tesla could not succeed without solving both.”

ELON MUSK: "The car industry is a very difficult industry. There are only two car companies that haven't gone bankrupt: Ford and Tesla. Rivian is going to have a hard time. It's insanely difficult to compete in the car industry.

If it were not for not just one, but two… pic.twitter.com/rOgdBiGJHq

— Autism Capital (@AutismCapital) October 19, 2024

Earlier this month, Rivian announced that third-quarter vehicle deliveries missed forecasts and lowered its full-year production guidance amid continued “component shortage.”

Rivian said it delivered 10,018 vehicles in the quarter and produced 13,157 units. This missed FactSet estimates of 12,670 deliveries.

The problem with Rivian is the limited affordability options for most models—they’re out of reach for the average consumer. The company expects to launch a smaller Tesla Model Y-rivaling R2, which won’t roll out onto US highways until late 2026 or even 2027.

Last month, Morgan Stanley’s Adam Jonas downgraded names like GM, Ford, Rivian, Magna International, and Phinia amid the slowdown in the auto market.

It doesn’t help when high interest rates and elevated vehicle prices have sent new monthly car payments skyrocketing higher in several years.

In a separate note earlier this year, MS Jonas pointed out that struggling EV companies could develop partnerships with legacy automakers.

Rivian recently partnered with Volkswagen, validating the analyst’s consolidation forecast in the space.

Here’s what X users are saying about Musk’s comments last night about Rivian:

in reality, Tesla has nothing to gain by buying a company that egregiously burned through 23 *billion* un-successfully ramping a single product line

— WeirdNerd (@xIronman777) October 19, 2024

Elon actually wants others to do well! This is another thing that folks don’t immediately realize. Tesla open sourced all their patents to help folks like Rivian out. He cares about the mission and wants competition out there to drive better products for all.

— ĐOGEARMY GENERAL (@TheTeslaBull) October 19, 2024

They’ve burned so much cash. Soo soooo much cash. Prognosis for the future isn’t nearly as bright as Tesla either.

That said… why would Tesla want to buy into such a cash drain? What tech do they have that’s even useful to Tesla?

— Charlie (@CharliePryor) October 19, 2024

Shares of Rivian are down 57% this year – near record lows. Short interest is about 16.5% or about 122.3 million shares.

The price war Telsa started just a few short years ago to crush competition shows that Musk continues to win.

In the gathering of about 500 business leaders at the Detroit Economic Club on Oct. 10, Trump proposed the expansion of research and development credits, increased equipment costs for small businesses and consumer tax deductions on car loan interest to appeal to Michigan voters.

The package of incentives also includes a 100 percent tax write-off for heavy equipment in the first year and full expensing for new manufacturing investments. He also proposed doubling the equipment deduction limit for small businesses from $500,000 to $1 million. Additionally, consumers could deduct car loan interest, similar to deductions on home loan interest.

“This will stimulate massive domestic auto production and make car ownership dramatically more affordable for millions and millions of working American families,” he said, noting that many people in the audience work in the auto industry. (Related: Michigan auto workers blame Biden-Harris EV mandates for industry job cuts.)

Trump also reiterated his commitment to revisiting the U.S.-Mexico-Canada Agreement (USMCA) and promised to address perceived imbalances, particularly the growing trade deficits with Mexico and China upon taking office. The U.S. goods trade deficit with Mexico increased by 23.7 percent ($130.5 billion) in 2022, while the deficit with China rose by 8.3 percent ($382.3 billion) during the same period. The USMCA, signed into law in 2020, replaced the North American Free Trade Agreement (NAFTA).

The former president presented his proposals as a “detailed plan to save the American auto industry.” In turn, he guaranteed voters that his policies would reverse job losses, claiming: “You vote for Trump, and you will see a mass exodus of manufacturing jobs, but from Mexico to Michigan, from Shanghai to Sterling Heights.”

Trump also promises tax cuts to U.S.-based manufacturers and tariff hikes to foreign investors

On Oct. 3, Trump made similar claims about the U.S. auto-manufacturing industry, announcing his plans to encourage manufacturers to produce goods in the United States by lowering corporate tax rate from 21 percent to 15 percent for U.S.-based manufacturers and proposing a 100 percent tariff on imported automobiles. Trump also pledged to cut gasoline prices by 50 percent within one year of taking office by boosting domestic oil production and doubling electricity production, which he believes will further attract manufacturers.

Moreover, Trump pledged to enhance protections for industries essential to national interests, such as steel and automotive sectors by implementing higher tariffs, a measure that Harris has consistently criticized as a tax on the American public.

“I want tariffs, but there has to be reciprocity,” Trump said, meaning an equal trade footing between the United States and other countries. “Without that tariff, every single one of the Detroit Big Three could right now be out of business.”

When asked about Chinese automakers locating plants in Mexico in an attempt to sell electric vehicles in the U.S., Trump said: “I will impose whatever tariffs are required … 100 percent, 200 percent, whatever is necessary.”

Learn the latest news regarding President Donald Trump at Trump.news. Watch as Trump says “there won’t be an auto industry left” if Kamala wins.

This video is from the NewsClips channel on Brighteon.com.

More related stories:

• Trump vows to revoke legal status and DEPORT Haitian immigrants in Springfield, Ohio if reelected in November.
• Trump’s crowdfunding campaign for those affected by Hurricane Helene raises $4 million in just a few days.
• Trump accuses Biden-Harris admin of committing ELECTION INTERFERENCE by depriving him of security.
• Trump tells supporters he plans to prosecute Google for rigging election information in favor of Kamala.
• Trump meets Zelensky, vows to negotiate peace deal “that’s good for both sides.”

Sources include:

• TheEpochTimes.com
• CNN.com
• Brighteon.com