The Auto Industry’s Future is in Doubt

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(Detroit)

Travis Kalanick may have departed as Uber's CEO, but that does not mean Uber is not now a threat to the US auto industry. Silicon Valley has been taking the lead in the US car industry, which is threatening to upend the long-held dominance of American automakers in Detroit. Analysts at Guggenheim believe that Uber and other Silicon Valley companies, like Google's Waymo, pose a threat to Ford and GM. They argue that this "secular upheaval" occurring in the car industry is weighing on the car companies' stock.

FINSUM : The adage is that uncertainty is bad for markets, and that seems to be the case here. Our view, which contrast to most is that self-driving cars will actually favor auto companies as they will be able raise prices as the returns of renting out such automobiles push their economic worth higher. It could make cars a higher margin industry.

  • cars
  • detroit
  • silicon valley
  • selfdriving cars

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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