Automotive Industry Trends

The American car loan just hit a wall. Nearly 5% of U.S. auto loans are now 90+ days delinquent. That’s the highest level since the Great Recession. Repossessions topped 1.7 million in 2024, and the pain is now spreading well beyond sub-prime borrowers. On top of that, the average new vehicle now costs over $50,000, according to Kelley Blue Book. Loan terms are stretching past 72 months, interest rates remain painfully high, and more borrowers are finding themselves upside-down. Even Jamie Dimon is waving the caution flag, warning that “cracks in the consumer” are showing up first in auto credit. “When you see one cockroach, there's probably more.” When I started my career as a banker, auto loans used to be the most “sacred” payment in the household. People paid the car note before the credit card. Not anymore. Household fragility in a higher-for-longer world, where even middle-income borrowers are falling behind. And many of you don’t really understand your customers from a household perspective. If auto delinquencies are the cockroach in the coal mine, it’s time you start listening. #Banking #AutoFinance #Economy #Fintech #CreditRisk #Lending #CommunityBanking #Data #communitybanking #creditunions #automanufacturing #autodealers

Battery electric vehicles have just outsold petrol-only cars in the EU for the first time ever. This significant milestone comes amid steadily increasing demand, with full-year BEV sales 30% higher in 2025 than the previous year. Other highlights included: ✅ BEV sales climbed 51% in December ✅ Meanwhile, petrol sales fell 19% ✅ Hybrids still have the largest share of the market This historic moment is the result of years of enabling policy that laid the groundwork for increased adoption, now reinforced by improvements in the vehicles themselves and the supporting infrastructure. It is a sign that consumers increasingly have the confidence to commit to clean transport. And it's not surprising. Faster charging speeds, longer ranges, more models to choose from and falling prices are all contributing to making EVs a more compelling proposition. And as the products improve, demand is no longer being primarily driven by government incentives. New affordable Chinese brands are intensifying competition, while European manufacturers are adapting by introducing newer and lower-priced models. This competition is good news for consumers – and a sign that the shift to clean transport is becoming self-sustaining.

In 2010, fewer than 100,000 battery electric vehicles were sold worldwide. In 2025, that number was 12.7 million. The Nissan Leaf launched in 2010 as the world's first mass-market electric car. The Tesla Model S followed two years later. For most of the decade, the market barely moved. The technology existed. The buyers didn't come. Then something changed. From 2020, the curve went near-vertical. Falling battery costs, a flood of new models, and policy pressure in China and Europe together triggered one of the fastest technology transitions in automotive history. 1 in 6 new cars sold globally last year was battery electric. In China, it was 1 in 2. We are still in the early stages. But the direction of travel is no longer in doubt.

My projection for the EV world in 2026 First, a macro call. My prediction is that we move from 17.5% BEV share in the EU today to ~25% in 2026. That means strong acceleration as we went from 13% to 17.5% between 2024 and 2025. 🚗 Let’s talk new car models. Volvo EX60. BMW iX3. Mercedes CLA. What’s the common point between these three? ⚡ They all use 800V architectures. And that’s a game changer. 700km+ of range. ~400km charged in around 10 minutes. This is where EVs take a real leap forward. Charging speed and long-distance usability stop being issues. 🤞 I really hope Renault and Stellantis will move to 800V too, at least on their premium models. It’s clearly becoming the new standard for high-end EVs. 💶 At the same time, affordable EVs are finally coming. Renault Twingo. VW ID Polo. Skoda Epiq. This is where electrification truly becomes mainstream. ⚡ Charging speed will keep accelerating. Battery makers are making major progress and will significantly improve charging performance between now and next year. This is a broad industry move. 🏎️ Premium will go electric. And that matters. Ferrari Elettrica. Porsche Cayenne electric, Range Rover electric. Desire always pulls the market forward. 🇪🇺2026–2027 will be a turning point for BEV manufacturing in Europe. Many Asian OEMs will start producing locally: - BYD in Hungary - Hyundai Kia in Slovakia and Czech Republic - Toyota in Czech Republic - Xpeng and GAC Motor in Austria - Chery Omoda Jaecoo in Spain - LeapMotor in Spain Producing in Europe will allow them to avoid tariffs, shorten supply chains, and potentially benefit from local incentives and bonuses. 🌍 Electrification is not just a European / Chinese story. BEVs are ramping up fast in Thailand, Vietnam, Indonesia, Turkey, India and Brazil. The next wave of electrification is global. ⚡ In a nutshell 2026 is when EVs stop being “the future” and become the obvious choice.

𝗧𝗵𝗲 𝘁𝗲𝗿𝗺 “𝗽𝗮𝗿𝗮𝗱𝗶𝗴𝗺 𝘀𝗵𝗶𝗳𝘁” 𝗶𝘀 𝗼𝗳𝘁𝗲𝗻 𝗼𝘃𝗲𝗿𝘂𝘀𝗲𝗱 𝘁𝗵𝗲𝘀𝗲 𝗱𝗮𝘆𝘀. 𝗕𝘂𝘁 𝗶𝘁’𝘀 𝘃𝗲𝗿𝘆 𝗮𝗽𝗽𝗹𝗶𝗰𝗮𝗯𝗹𝗲 𝘁𝗼 𝘄𝗵𝗮𝘁 𝗶𝘀 𝗵𝗮𝗽𝗽𝗲𝗻𝗶𝗻𝗴 𝗿𝗶𝗴𝗵𝘁 𝗻𝗼𝘄 𝗶𝗻 𝘁𝗵𝗲 𝗴𝗹𝗼𝗯𝗮𝗹 𝗮𝘂𝘁𝗼𝗺𝗼𝘁𝗶𝘃𝗲 𝗶𝗻𝗱𝘂𝘀𝘁𝗿𝘆! ⬇️ At IBM, we’ve surveyed 101 automotive OEM executives across the US, UK, Germany, and India and gathered insights into how AI is transforming their industry. And there is one overarching takeaway: 𝗔𝗜 𝗮𝗱𝗼𝗽𝘁𝗶𝗼𝗻 𝗶𝘀𝗻'𝘁 𝗷𝘂𝘀𝘁 𝗮 𝘁𝗲𝗰𝗵𝗻𝗼𝗹𝗼𝗴𝘆 𝘀𝗵𝗶𝗳𝘁; 𝗶𝘁'𝘀 𝗮 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗽𝗿𝗶𝗼𝗿𝗶𝘁𝘆 𝗳𝗼𝗿 𝘁𝗵𝗲 𝗳𝘂𝘁𝘂𝗿𝗲 𝗼𝗳 𝘁𝗵𝗲 𝗮𝘂𝘁𝗼𝗺𝗼𝘁𝗶𝘃𝗲 𝗶𝗻𝗱𝘂𝘀𝘁𝗿𝘆. Here’s why: 1. 𝗖𝗮𝗿𝘀 𝗮𝗿𝗲 𝗯𝗲𝗰𝗼𝗺𝗶𝗻𝗴 𝘀𝗼𝗳𝘁𝘄𝗮𝗿𝗲-𝗱𝗲𝗳𝗶𝗻𝗲𝗱: ➜ AI is at the heart of this shift. In just a few years, 79% of automakers expect to have software-defined vehicles (SDVs), making AI the essential motor for driving this change. 2. 𝗔𝗜 𝘄𝗶𝗹𝗹 𝗽𝗼𝘄𝗲𝗿 𝗻𝗲𝘄 𝗿𝗲𝘃𝗲𝗻𝘂𝗲 𝘀𝘁𝗿𝗲𝗮𝗺𝘀: ➜ The future of automotive isn’t just about vehicles; it's about services. Automakers are set to generate 51% of revenue from digital and software services by 2035. From predictive maintenance to in-car experiences, AI is creating new business models. 3. 𝗔𝗜 𝘄𝗶𝗹𝗹 𝗳𝘂𝗲𝗹 𝗶𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝗼𝗻 𝗶𝗻 𝗽𝗿𝗼𝗱𝘂𝗰𝘁 𝗱𝗲𝘃𝗲𝗹𝗼𝗽𝗺𝗲𝗻𝘁: Automakers are rethinking their operating models, and AI is leading the charge. **65% of executives** already have a clear strategy for integrating AI into their long-term plans. This includes everything from **autonomous driving** to creating personalized in-car experiences. 4. 𝗔𝗜 𝗶𝘀 𝘁𝗵𝗲 𝗸𝗲𝘆 𝘁𝗼 𝗳𝗮𝘀𝘁𝗲𝗿 𝗮𝗻𝗱 𝘀𝗺𝗮𝗿𝘁𝗲𝗿 𝗼𝗽𝗲𝗿𝗮𝘁𝗶𝗼𝗻𝘀:  AI is improving everything, from customer insights to predictive maintenance, and it’s streamlining manufacturing and operations. By implementing AI, the industry expects a 40% boost in productivity within three years. 5. 𝗔𝗜 𝗶𝘀𝗻’𝘁 𝗷𝘂𝘀𝘁 𝗮 𝘁𝗿𝗲𝗻𝗱: ➜ In a world where the automotive landscape is changing rapidly, AI investments are no longer seen as optional. 79% of executives say AI is strongly supported by senior leadership and will drive measurable competitive advantage. 𝗧𝗵𝗲 𝗶𝗻𝘁𝗲𝗿𝗲𝘀𝘁𝗶𝗻𝗴 𝗽𝗮𝗿𝘁: 𝗔𝗜 𝗶𝘀 𝗻𝗼 𝗹𝗼𝗻𝗴𝗲𝗿 𝗷𝘂𝘀𝘁 𝗮𝗯𝗼𝘂𝘁 𝗮𝘂𝘁𝗼𝗺𝗮𝘁𝗶𝗼𝗻. 𝗜𝘁'𝘀 𝗮𝗯𝗼𝘂𝘁 𝗰𝗿𝗲𝗮𝘁𝗶𝗻𝗴 𝗻𝗲𝘄 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝗺𝗼𝗱𝗲𝗹𝘀 𝘁𝗵𝗮𝘁 𝗱𝗶𝗱𝗻’𝘁 𝗲𝘅𝗶𝘀𝘁 𝗯𝗲𝗳𝗼𝗿𝗲. 𝗙𝗼𝗿 𝗮𝘂𝘁𝗼𝗺𝗮𝗸𝗲𝗿𝘀, 𝘁𝗵𝗶𝘀 𝘀𝗵𝗶𝗳𝘁 𝗶𝘀 𝗮𝗻 𝗼𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝘆 𝘁𝗼 𝗻𝗼𝘁 𝗼𝗻𝗹𝘆 𝗶𝗻𝗰𝗿𝗲𝗮𝘀𝗲 𝗿𝗲𝘃𝗲𝗻𝘂𝗲 𝗯𝘂𝘁 𝘁𝗼 𝗿𝗲𝗱𝗲𝗳𝗶𝗻𝗲 𝘁𝗵𝗲 𝗲𝗻𝘁𝗶𝗿𝗲 𝗶𝗻𝗱𝘂𝘀𝘁𝗿𝘆. You can download the study below or via this link: https://lnkd.in/gWCv6kJZ --- Next in the IBM Institute for Business Value industry series is “Oil & Gas in the AI Era,” followed by eight other industries, one each month until the end of the year.

Transformation thrives when people are empowered to make the most of technology. 🚀 My recent visit to the Bosch production facility for automotive and eBike drives in Miskolc, Hungary, showcased this perfectly. I was deeply impressed to see firsthand how their progress in digitalization and the implementation of the Bosch Manufacturing and Logistics Platform (BMLP) is reshaping their manufacturing operations. BMLP is a globally standardized, open IT platform that connects all stages of production and logistics. During an insightful plant tour, I observed a successful example of how the platform leads to significant improvements in efficiency, quality, and data transparency across the plant. What stood out most was seeing the passionate and enthusiastic team at Miskolc leverage this technology in action and achieving great results towards operational excellence. Here are three key areas where BMLP is contributing to the plant’s digital transformation success, powered by our NEXEED IAS: 1️⃣ Enhanced Efficiency & Reduced Downtime: The module Shopfloor Management enables a closed PDCA cycle in production by consequent integration of all relevant information in one system. This leads to quick reaction in case of deviations to minimize downtimes and safeguard the daily performance targets.   2️⃣ Improved Product Quality: Continuous monitoring throughout production stages helps the team identify issues early, ensuring top-tier quality while driving process improvements.   3️⃣ Change Management: Change management plays a crucial role in digital transformation within a plant. As seen in Miskolc, effectively managing change ensures that the workforce is engaged, and equipped to embrace new technologies, driving sustainable success. In Miskolc we have seen solutions using gamification that help to involve all associates, making the transition both engaging and effective.   I was also excited to see AI in action with a live demo of 8D Analysis using GenAI, cutting failure analysis time by half. By automating the root cause analysis process, engineers are now spending less time on administrative tasks and more on proactive problem-solving – a great example of how technology empowers people. Beyond the production lines, the most rewarding part of the visit was engaging with the team. Their passion for digitalization, commitment to upskilling, and their drive for innovation truly brought home the message: technology is only as strong as the people behind it. A special thank you to the entire Miskolc team for the inspiring discussions and warm welcome – along with Volker Schilling, Klaus Maeder, Joerg Klingler, Volker Schiek, Norbert Jung, Stephan Brand, Aemen Bouafif, and everyone who joined us on this great trip. I’m excited to see what’s next on this incredible digitalization journey!

Model a full Formula 1 car in SOLIDWORKS — and understand how aerodynamics really work. Start here 👉 https://lnkd.in/eZbDrbEn In this timelapse you’re not just seeing a Formula 1 car being modeled in SOLIDWORKS — you’re seeing aerodynamics being shaped using AirShaper. When people think about F1 aerodynamics, they often focus on wings. But in reality, the entire car plays a role: front wing, rear wing, sidepods, and most importantly… the floor. The floor is where we achieved the biggest performance gains. Using AirShaper CFD, together with expert guidance from Wouter Remmerie 🏁, we optimized the airflow under the car, specifically through the Venturi tunnels. In simple terms: a Venturi tunnel accelerates airflow underneath the car, lowering pressure and pulling the car toward the ground. The faster the air moves under the floor, the more downforce you generate — without relying solely on big wings. By carefully adjusting the floor geometry and airflow paths, we managed to increase downforce by up to 236%, while simultaneously reducing drag. That’s the power of combining SOLIDWORKS modeling + CFD simulation. Small geometric changes can lead to massive performance differences — something you only truly understand when you see the airflow, pressures, and forces interact in real time. And this isn’t just theory. In real motorsport, every circuit requires a different balance: - High-speed tracks → low drag, maximum efficiency - Technical circuits → higher downforce, more grip CFD allows engineers to explore those trade-offs before anything is built. Now, a Formula 1 car might feel far removed from everyday design work — although one of my students recently started as a Surface Design Engineer at the Cadillac Formula 1 Team. But the skills you develop here go far beyond F1. The same aerodynamic and surface-modeling principles apply to: - Sports cars and hypercars - Aircraft and drones - Yachts and hydrofoils - Consumer products where airflow, noise, or cooling matters - Basically any complex product where geometry affects performance That’s why my SOLIDWORKS courses are built around learning by modeling real products. You don’t just learn tools — you learn how design decisions influence real-world behavior. If you want to start upgrading your SOLIDWORKS modeling skills, you can access free F1 helmet modeling videos and get more info about my upcoming full SOLIDWORKS course launch which also covers design optimization using CFD right here 👉 https://lnkd.in/eZbDrbEn #SOLIDWORKS #CFD #Formula1 #Aerodynamics #SurfaceModeling #EngineeringDesign #ProductDesign #AirShaper #3DModeling #MotorsportEngineering #CAD #DesignEngineering #TimeLapse #EngineeringEducation #IndustrialDesign #CADDesign #MechanicalEngineering #SolidWorksTutorial #SolidWorksSurfaceModeling #LearnSolidWorks  #SolidWorksSkills #CareerGrowth #Tutorial #Design #Engineering #Innovation #SOLIDWORKSDesign #SOLIDWORKS2026 #3DDesign #CADDesigner #DassaultSystems

Global electric car sales are set to grow strongly again this year, reaching about 17 million. With more than 1 in 5 cars sold worldwide in 2024 set to be electric, the rise of EVs is transforming the auto industry & the energy sector. Read more from the International Energy Agency (IEA) Energy Agency: https://iea.li/44isGtR Electric cars' growth this year builds on a record-breaking 2023, when sales soared by 35% to almost 14 million. Demand was largely concentrated in China, Europe & the US, but momentum is picking up in key emerging markets such as Viet Nam & Thailand. Explore IEA’s Global EV Outlook 2024: https://iea.li/3QdwEhJ Despite near-term challenges in some countries, new IEA analysis sees the global electric car market gearing up for the next phase of growth. Under today's policy settings, nearly 1 in 3 cars on China's roads by 2030 is set to be electric & almost 1 in 5 in the US & EU. One reason for EVs' bright prospects: Manufacturers have taken huge steps to deliver on government ambitions. This includes major investments in EV and battery production. As a result, global capacity to produce EVs and #batteries is on track to keep up with rising demand. Under today’s policy settings, the rapid uptake of #EVs – including cars, vans, trucks, buses and 2/3-wheelers – is set to avoid the need for more than 10 million barrels of oil a day in 2035. That's equivalent to all the oil demand from road transport in the United States today. It’s important to note that the pace of the EV transition will hinge on their cost. In China, more than 60% of electric cars sold in 2023 were already cheaper than conventional equivalents. Competition & innovation are expected to bring down prices in other major markets. The transition to #ElectricCars is changing the global auto industry, and growing competition is putting downward pressure on prices. Chinese companies accounted for over half of global sales in 2023. In conventional cars, China has a much smaller market share. Making EVs more affordable is vital – as is ensuring that the availability of public charging keeps pace with sales. Last year, public charging point installations were up 40% from 2022. To align with government pledges, charging networks must grow six-fold by 2035. Alongside today’s new report, IEA is releasing 2 detailed interactive tools allowing users to dig deeper into EV trends & policies around the globe. Take a look at the data ➡️ https://iea.li/3xHJzlo Explore the policies ➡️ https://iea.li/44fjbvp For more on the key findings from IEA’s new Global EV Outlook 2024, read the freely available report online ➡️ https://iea.li/3QdwEhJ   And join IEA Chief Energy Technology Officer Timur Gül & me for our LIVE launch event at 10:30 CEST ➡️ https://iea.li/3WaxcZn

Seat sold 17% fewer cars last year. Cupra grew 32.5%. Same factory. Same engine. Same company. But one is winning, and the other is shrinking. I looked at the numbers from 2025. The "middle" of the market is being slaughtered. Here is the reality: Money is expensive. I checked the current finance offers. You are looking at 6.9% to 7.9% APR for a standard car loan in Europe right now. A few years ago, it was 0% or 1%. Think about the guy buying a car today. He looks at a Seat Leon. It’s a good car. Sensible. But at 7% interest, the monthly payment is high. It hurts to pay a premium price for a "sensible" product. So the market splits. 1. The Flight to Value. People who need utility are leaving the middle. They buy a Dacia Sandero (the #1 selling car in Europe). Or they buy used. They refuse to pay interest on a badge that doesn't excite them. 2. The Flight to Emotion. If you have to pay high interest, you want to feel something. You want the status. The copper logo. The bucket seats. You stretch for the Cupra because it feels like a reward, not a utility bill. It is not just cars. Look at retail. Primark is struggling in Europe. Their sales dropped 5.7% on the continent last quarter. Why? Because Shein and Temu are cheaper. Primark got stuck in the middle - not cheap enough to beat the Chinese apps, not premium enough to be a brand. The lesson for 2026: The "safe middle" is the most dangerous place to be. High interest rates expose boring products. If you are selling something this year, you have two options: Be the absolute cheapest. Or be the one they dream about. Everything in between is disappearing.

Door 4 in our 𝐚𝐝𝐯𝐞𝐧𝐭 𝐜𝐚𝐥𝐞𝐧𝐝𝐚𝐫 𝐨𝐟 𝐢𝐧𝐧𝐨𝐯𝐚𝐭𝐢𝐨𝐧 “brakes” new ground in mechanical deceleration and stopping power.   An electric vehicle brakes primarily through recuperation – i.e. by using the motor as a generator to recover power during deceleration. We are therefore rethinking the conventional concept of mechanical friction braking at the vehicle’s wheels.   The innovative and more sustainable 𝐢𝐧-𝐝𝐫𝐢𝐯𝐞 𝐛𝐫𝐚𝐤𝐞 currently under research has moved out of its “ancestral home” to take up residence in the electric drive unit at the front or rear. It occupies very little space and – according to our current findings – is subject to minimal wear, doesn’t rust and is virtually maintenance-free. As well as being extremely durable and reliable, it would also emit zero particulates into the atmosphere. Plus, braking noise and cleaning brake dust from wheels would become a thing of the past.   The in-drive brake is also extremely promising in terms of its performance. The braking effect is easy to control and doesn’t fade, even under heavy loads. The removal of brake units from the wheel area also lowers unsprung mass, which improves ride and handling characteristics. Not only that, with no requirement for brake cooling at the wheels, rims could be fully closed for optimised aerodynamics. A technological win-win that opens up new design freedoms!   Check out the video to see it in action.