Where's the growth? Legacy automakers face a tougher 2027 as costs rise, market tightens
CNBC · Michael Wayland ·
Automakers are warning about higher commodity, logistics and memory costs, while pricing power is becoming harder to extend to consumers.
DETROIT — There's a growing concern that the global automotive industry may be stuck in neutral, if not reverse, heading into 2027.
The auto industry — from the companies to their customers — has been surprisingly resilient this decade, but there are fears that rising costs, weaker vehicle pricing and a more challenging market could threaten profits and growth going forward.
Automakers also face pressure outside the U.S. from an onslaught of Chinese carmakers, a thinner new-product pipeline after retreating from some all-electric plans, and company- and region-specific challenges.