Automobiles

The bumpy transition toward electric vehicles

illustration of a car broken up
Illustration: Rebecca Zisser/Axios

Daimler announced over $1 billion in job cuts over the next three years on Thursday, citing the costs of moving the company toward a more climate-friendly product line and meeting EU emissions targets.

Why it matters: The German auto behemoth's announcement is a sign of how the wider industry's movement toward electric vehicles and automated technology will be a bumpy ride.

Car loans are dragging Americans underwater

In this illustration, two giant hands hold a miniature car.
Illustration: Sarah Grillo/Axios Visuals

More people buying new cars with trade-ins have negative equity than in previous years, the Wall Street Journal reports, and those borrowers already carry more car debt before taking on new, steeper loans.

Why it matters, per the WSJ: "Consumers, salespeople and lenders are treating cars a lot like houses during the last financial crisis: by piling on debt to such a degree that it often exceeds the car’s value."