Auto Industry Consolidation and Capacity Challenges

The podcast discusses the auto industry's excess capacity, particularly emphasizing China's dominance in the electric vehicle (EV) market. The conversation suggests that while consolidation may continue, what is more necessary is rationalization among automakers to identify their competitive edges. In particular, European manufacturers are viewed as lagging behind in innovation, while Japan is recognizing the need for consolidation to enhance competitiveness in the face of China's market shifts. The significance of tariffs as a tool for protecting market share is also highlighted, raising questions about the potential rise in protectionism in the coming years.