Manufacturers' flexible approach to maintain ICE and BEV production could lead to underutilized factories, risking layoffs and stability during the transition to electric vehicles.
Automakers' strategy of flexibility aims to meet current EV demand while retaining the ability to pivot back to combustion power can compromise long-term stability.
Optimum plant capacity is around 80%, but U.S. automakers are averaging 70% and may decline to below 60% by 2030 due to flexible strategies.
GlobalData's forecast suggests that the automotive industry's shift to a flexible production model may result in a worrying decline in factory utilization rates.
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