Morgan Stanley auto analyst Adam Jonas said March 18 that there will be a dramatic shift among the world’s nearly 30 major automakers in the next 15 to 20 years – which may be spurred as a result of the success of Tesla Motors, Inc.
In a research note, Jonas speculated that there will be a significant amount of consolidation within auto companies and that about a half dozen will remain. He thinks the world has more automakers than it can sustain and that automakers are too focused on making next year’s model when they should be looking at advancing technology, which the Tesla has been very successful doing by ignoring the status quo and focusing on innovation.
News of a failing auto industry rocked the news almost a decade ago during the financial crisis, but in many cases, the government stepped in to help. There has been some consolidation among suppliers, but not as vast as was expected.
General Motors Co. has already announced that it has set up a committee to review Tesla’s operations to see if they could glean anything, but Jonas isn’t sure the industry is ready to embrace self-driving cars. He added that there is an unusually high number of new tech players based in Silicon Valley.
Source: Detroit News