The Local AutoMobile Factory

The Real Estate Espresso Podcast

The Local AutoMobile Factory

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Podcast Title: The Local AutoMobile Factory

Welcome to the Real Estate Espresso Podcast, your morning shot at what’s new in the world of real estate investing. I’m your host, Victor Menasce.

I’ve heard that a particular community needs more housing because a new factory’s coming to town. It could be a new electric vehicle plant, a battery plant, or a shift in production to a new model car or truck at an existing plant. On today’s show, we’re looking back to the early days of the automobile industry.

From early manufacturers such as Auburn, Cole, Crow, Davis, Dixie, and others, long since forgotten, we’ve seen the rise and fall of countless brands. Yet, a few like Buick, Cadillac, Chevrolet, Fiat, and others are still remembered. The first mass-production automobile was the Model T, which was in production for 18 years.

At peak, hundreds of auto manufacturers existed, with the U.S. leading the world by manufacturing 4.3 million cars in 1928. Canada was second with 240,000 cars. France and the UK were essentially tied for third and fourth with 210,000 each.

Expect further consolidation in the automobile industry. Initially, General Motors was formed through the merger of 17 different auto companies, ultimately absorbing 48 brands in total.

Consider the plight and subsequent bankruptcy of the once-promising Swedish battery developer, Northvolt. Despite securing about $15 billion in debt, equity, and grants and an order book swelled to over $50 billion, it still failed. This poses a significant risk to any real estate investments near manufacturing plants in startup mode.

Residential real estate investments always align with the laws of supply and demand. Hence, gauge demand carefully while investing, especially if a new auto plant opens near the area of interest. The situation is fluid, and it’s crucial to keep an eye on global market shifts and adjustments.

Global market share losses will inevitably impact the U.S. and Canada. Therefore, if you’re considering a new auto plant as a definite source of demand for residential housing, exercise caution. Stay on top of global trends and adjust your expectations and investments accordingly.

That’s all for now. Have an awesome rest of the day and go make some great things happen. We’ll talk to you again tomorrow!