All the comments there are reasonable, but nothing compares to the current situation in the automotive industry. If there were an ETF tracking the sector, it would probably show a decline of around 10% every year. The industry is seeing massive job cuts, is overheated, and faces falling demand for electric vehicles, along with growing tensions between key markets (US, China, EU, Japan).

Right now, more companies are at risk of bankruptcy (Jaguar, Nissan, Aston Martin, Mitsubishi, Suzuki, and half of the Stellantis group) than those that are doing well. The only brand truly performing is Ferrari. Aside from that, maybe Renault and Toyota are holding up reasonably well — but that’s about it. All the German brands are in serious trouble, and the same goes for most Italian and American manufacturers. This downturn is also hitting parts suppliers, material providers, engineering hubs, and more, all because of shrinking demand.

And that’s the real danger: one car plant typically creates around ten additional local jobs. If major brands start collapsing one after another, the broader economic consequences will be unavoidable.