Jaguar has been steadily losing money over the years, and it is only time before the river runs dry. It has yet to make a big return, and compared to its sister company, Land Rover, its sales are miniscule.
To make matters worse, Jaguar was said to be going EV-only by 2025, and for that to happen, most of its existing products would have to end. So, unless someone buys it from Tata Motors and revitalizes the brand, Jaguar is unlikely to make it in the long run.
Some have predicted that the entire Japanese automotive industry will eventually go bankrupt. We don’t know about that, but if there are some victims of the market, we think Mazda would likely be the first to go.
In 2020, Mazda sought a $4.2 billion bailout to save it from bankruptcy, but now that it has it, the cash is likely to run out. The brand currently offers no electric vehicles.
Chrysler already filed for bankruptcy in 2009, and the brand has been limping on ever since. Currently, they only make two cars, a sedan and a minivan - nothing else. While owned by Stellantis, the Chrysler brand is unlikely to make it in the years to come.
By 2028, the brand is said to be going fully electric, which may make sales suffer even further. Chrysler, it seems, is on its last legs.
Cadillac was once the epitome of American luxury, but it is no longer after narrowly escaping its end when GM filed for bankruptcy in 2009.
In recent years, it tried to compete with the German market but with no success. Now, it seeks to compete with Tesla in the EV market with its Super Cruise autopilot technology. We don’t see this going anywhere but downhill.
Supercar maker McLaren has suffered from huge losses in recent years and has been under huge financial pressure. Its slow sales are undoubtedly due to the market and the fact it caters to only the significantly wealthy.
It has failed to meet its projected sales numbers year after year, and in 2023 the company got a bailout of $80 million from Mumtalakat that saved it from bankruptcy – but for how long?
While Mitsubishi as a whole may survive, its automotive manufacturer, Mitsubishi Motors, may not. Its best-selling mode, the Outlander, only sold around 33,000 models. In 2022, it sold around 40,000.
Already, the company doesn’t have much of a presence in the United States, and it recently ended automobile production in China. Before that, in 2020, Mitsubishi stopped developing cars for European markets. Who is left to sell to?
As the automotive industry pushes towards an EV future, Volvo is showing signs of struggle in its midst, having cut off funding for Polestar – an EV-only brand.
Volvo continues to struggle with sales, with no models in the top 25 best-seller list. In 2022, Volvo saw a significant drop in sales, and its top-selling model to date is a gasoline model—the XC60. If it can't produce a successful EV or even a hybrid, Volvo may slowly perish in the years to come.
The Swedish car company barely hangs on, with shares down as much as 83% since 2022. Volvo, who owned a majority of shares, ended up diluting its shares early in 2024. On top of that, the struggling company had also announced plans to cut its workforce by 15%.
Now, Polestar, after raising nearly $1 billion in debt financing, is getting a bailout from Geely, a Chinese multinational automotive company. Meanwhile, Volvo has diluted its shares to 18%, down from 48%.
While GM is not likely to go bankrupt quite yet, its brand, Buick, is reaching the end of its life. Sales for the Buick continue to dwindle, and with GM’s plans for Buick to become an EV-only brand, it’s unlikely to survive because many are unready for this shift.
The brand currently has only a handful of models available, and half of Buick dealerships have already chosen to be bought out by GM rather than sell EVs. If, indeed, the Buick EVs don’t sell, it’s likely the end of the brand that established General Motors over 100 years ago.
Elon Musk has already predicted that Rivian and Lucid Motors, two electric car companies, would go bankrupt. However, Rivian manufactured over 54,000 vehicles in 2023, six times the number that Lucid manufactured that year.
Of the nearly 8,500 vehicles manufactured by Lucid Motors, only 6,000 were delivered. The California-based company is likely to go bankrupt while it continues to struggle to sell its vehicles.
Lotus, known for its nimble sports cars, is navigating through a challenging period in the ever-changing world of automobiles. While EV startups like Fisker and Lucid are making waves in the news, it's worth considering the potential impact of China's economic troubles. There is some speculation going around that a big Chinese automotive company, like Geely, might have to take some drastic actions, which could potentially involve selling off assets such as Volvo, Polestar, and Lotus.
In a situation like this, it's possible that Polestar could be at risk of closure because of its similarities to Volvo. However, Lotus and Volvo might still continue to exist, although they may not be as strong as before. Yet, there's still a chance that a bigger player in the automotive industry might step in to save Lotus from its uncertain fate, protecting it from being taken over by venture capitalists.
Canoo, which is known for its future designs and new ways of thinking about electric cars, is having trouble because of bad management within the company. The company's future is uncertain, even though it has the ability to be successful. When it comes to classic car brands, it seems like the Chrysler brand is experiencing a similar fate as Oldsmobile.
Some people think that Canoo will come back to life in the future, maybe as an American luxury name to compete with Lincoln. Canoo's cool designs and useful website give us a glimpse of what might have been, but the company may not have much time left unless big changes are made to get it back on track.
Toyota is keeping a close eye on the possibility of a significant bankruptcy in the U.S. auto industry, as they are worried about the potential ripple effects it could have on the automotive sector as a whole. Nevertheless, in spite of the difficult business climate, Toyota's financial forecast remains fairly steady. According to Macroaxis, the chances of Toyota experiencing a financial crisis in the next 24 months seem to be quite low, with odds of distress at less than 5%.
In addition, it's worth noting that Toyota has achieved remarkable success in December 2023, surpassing its own sales and production records. This accomplishment highlights the company's ability to adapt and thrive in the market. These achievements showcase Toyota's knack for overcoming obstacles and staying at the forefront of the global automotive industry.
Nikola, previously known for its ambitious vision of hydrogen fuel cell and electric trucks, is currently facing severe financial challenges. The company's net income deficit is almost $1 billion, causing the stock price to drop to $0.70 per share, significantly lower than its previous value. Even with its challenges, Nikola's website continues to work, showing what might have been.
Although the initial ideas for the company were interesting, it has become clear that simply having unique ideas is not sufficient to succeed in the automobile industry. We're not quite sure what lies ahead for Nikola, but there is a possibility that the company might face financial difficulties and potentially declare bankruptcy in the near future.
Aptera is struggling to stay afloat and is facing significant challenges in order to make it through the year. Since 2006, the company has been dedicated to its two-seat, three-wheel EV concept. However, it has encountered financial challenges along the way, including a liquidation in 2011. Things aren't looking great, as there are concerns about the company's ability to release their outdated NACS plug vehicle and secure enough funding to stay afloat.
The niche market appeal of Aptera adds another layer of complexity to its prospects for widespread adoption, prompting concerns about its viability in an industry that is becoming more and more competitive. Bankruptcy seems to be looming for many struggling automotive companies, but Aptera has somehow managed to avoid it for quite some time.
Infiniti, the premium product branch of Nissan, is currently facing a challenging situation and has a rather bleak outlook for the future. There's been a lot of talk about what might happen to the brand in the future. Some people think there's a growing chance that Nissan could go bankrupt or close down.
Although it would definitely come as a surprise, most consumers probably wouldn't be deeply saddened by such an occurrence. Infiniti has been struggling with a lack of exciting products, which has brought attention to the substantial financial commitment needed to revive the brand. Infiniti's future looks uncertain, as it grapples to stay relevant in a highly competitive luxury automotive market.
Nissan's lack of innovation in updating its designs over the years has made it susceptible in the constantly changing automotive market. There are those who are discussing the potential downfall of Nissan, while others recognize the close connection between Nissan and its luxury division, Infiniti. It's clear that Nissan still needs to update their lineup more extensively.
It's hard to say if Nissan will be the next one to encounter major difficulties, but considering its long history in the industry, it seems that other struggling automakers might be more vulnerable to immediate risks. However, the success of Nissan relies on its capacity to adjust to evolving consumer preferences and come up with fresh ideas in a highly competitive industry.
According to valueinvesting.io, Ford Motor Company has a 4.41% chance of experiencing financial distress in the next 24 months. There are growing concerns about the possibility of Ford going bankrupt, and these concerns have been intensified by various factors. One of these factors is the proposal put forth by the United Auto Workers (UAW) union, which includes significant wage increases, shorter workweeks, and improved pension benefits.
Ford CEO Jim Farley has expressed concerns about the potential impact of these proposals on the company's financial stability, given the substantial rise in labor costs they would involve. In addition, the company is facing challenges like the global chip shortage, Ford's shift towards electric vehicles (EVs), and the ongoing effects of the pandemic. These factors have made the company's financial situation more complex.
Fisker, the electric vehicle startup, is facing serious financial difficulties and is at risk of bankruptcy. If the company doesn't find a way to get help from creditors and get enough money in the next year, they might have to file for bankruptcy. Fisker's financial difficulties were highlighted when it failed to meet the deadline for a $8.4 million interest payment on its 2026 notes, even with a 30-day grace period.
The future of the startup has become uncertain after talks with a major automaker for a potential investment fell through. After facing this setback, Fisker is now considering different options to address the situation. They are exploring both in- and out-of-court restructuring measures, as well as capital market transactions, in a final attempt to avoid bankruptcy. Alas, Fisker is running out of time, and its fate hinges on its ability to raise funds and negotiate with creditors.
Rivian has emerged as a —not so— strong player in the electric vehicle industry, capturing the interest of analysts. There are different opinions going around, but it's interesting to note that Rivian's sales figures are significantly higher than competitors like Lucid. The significant difference in sales performance indicates that Rivian may have a stronger position in the market, giving it a potential advantage over Lucid in terms of long-term viability.
On the other hand, the automobile industry is quite complex, and a company's performance can be influenced by various factors beyond just sales volume. Rivian's ability to hold its ground against smaller players like Lucid is a testament to its strength in the fast-changing world of electric vehicles.
