The automotive middle class is being extreme-liquidated. Across the globe, legacy manufacturers are being obliterated by massive debt, stagnant technology and appalling management misjudgement.
The Liberal/National government killed off the Australian auto makers which had previously been ringfenced by tariffs on foreign imports. The irony is that the last 3 brand, Toyota, GM Holden, and Ford, are all foreign-owned. For almost 10 years almost all vehicles sold here have been imported
A Ghost in the Triple Diamond
Picture this: The manager of a dealership in suburban Melbourne looks out at a street that feels like a graveyard. Their forecourt is a barren wasteland.
It was a different story back when. In the 1970s, the Chrysler Valiant was an Australian icon. The handsome, brawny titan dominated the road along with Holden and Ford, and success should have been a lay-down misère. To understand the systemic failure, we must understand that Mitsubishi took over Chrysler’s Australian operations in 1980, killing the brand to make room for the Sigma. Although Chrysler returned briefly with the 300C, that handsome gangster mobile was unloved. How has that worked out for them? Chrysler is now all but dead ,with a single model in the US.
As of 19 January 2026, Mitsubishi Motors Australia, a mere shadow of its former self, is rotting from the inside. Across the road, the Mitsubishi Electric building a thriving of hub of energy and action, while the Mitsubishi Motors showroom is overshadowed by a pall of grim despair. New CEO Shunichi Kihara started two weeks ago to find a brand in 9th place, reeling from an 81% dive in operating profit because they are not meeting the market.
The company is a cesspit of paralysis. In February, the Australian government will release the first NVES “name and shame” list. With no electric vehicles to offset their tragically thirsty Tritons, Mitsubishi is facing millions in penalties. Like a deer in the headlights they’ve reached for a lifeline but instead grabbed hold of a noose. They rebranded European Renaults as “the new ASX” to stay relevant, but mountainous price hikes have driven customers away.
Above: This Week’s VIDEO Review –2026 Mitsubishi ASX and why it doesn’t stand a chance
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ABOVE: Brands going or gone – and the brands that will replace them
Stellantis is flying through turbulence that will eventually rip its wings off. The projected $2.68 billion net loss is a symptom of an aging fleet and poor management. The French wing, Peugeot/Citroën, is undergoing triage and is currently on life support. Peugeot is cannibalising itself with razor-thin margins. Citroën has been forced into a budget pivot to compete with Dacia. Their sales skidded down the driveway 20% last year, forcing production to Morocco.
Then there is Citroën offshoot-DS Automobiles, which is being treated as a lost cause. Following its surgical removal from Citroën, sales have plummeted by 20.7%. Internal leaks suggest the brand will be axed by the end of the year. JLR is in the same ward. A massive cyberattack in September forced a global shutdown, resulting in a $3.6 billion revenue loss. Our much-loved Jaguar is now a void, with no new cars to sell while it waits for an EV reboot. Its disastrous ad campaign all but killed the ailing OEM. Range Rover was also crippled by the hack, forcing JLR to take a $3.1 billion government bail-out loan.
The industry’s biggest gamble is VinFast, the Vietnamese arm of Vingroup. Unless you keenly follow the industry, you will no doubt never have heard of the company. It is a nation-building project that pivoted to EVs in 2022. While it dominates Vietnam, it is bleeding cash globally. With $11.5 billion in debt and massive quarterly losses, it is the highest-risk player on the board. It could, and should, have taken on Tesla at its own game.
All of this comes as the Chinese march continues unabated. Critics blame wages as they always do, but the ignores the fact that Chinese brands also manufacture outside of China.
As of early 2026, more than 22 brands have established a local presence, with heavyweights like MG, GWM, BYD, and Chery already securing spots in the national top 10 for monthly sales. This pushed legacy brands into the paddock, and still those brands sit on their hands, and their outdated business models. This surge has seen China overtake Thailand to become Australia’s second-largest source of new vehicles, trailing only Japan. The writing is on the wall.
But the rabid influx is far from over. A dozen more brands expected by the end of 2027, dooming even more old mastheads to the scrap heap. High-profile newcomers like Zeekr, Deepal, XPeng, Geely, GAC Aion, and Leapmotor are already carving out niches. Upcoming launches from Nio and other banrds promise to introduce cutting-edge battery-swapping technology and affordable electric hatchbacks. Even luxury and specialised off-road segments are being targeted by sub-brands like Denza and Jetour, alongside tech giants like Xiaomi also entering the fray.
Things hot up even further in Australia’s beloved ute segment. A gaggle of old-school “rattling diesels” are being challenged by high-performance electrification. The BYD Shark 6 and GWM Cannon Alpha have led the charge with powerful plug-in hybrid systems, while the JAC T9 and the lifestyle-oriented Riddara RD6 offer pure electric alternatives. As a side note: Geely and its sub-brands are in a spot of bother so we will be keeping an eye on them.
Nah-sayers excuse ancient tech in Hilux, Ranger, Triton, and Amarok with a quick, “it can’t tow a small sun.” Who cares? Apart from a very few specialised tradies, caravaners we could well do without, and weekenders on a trip to the dump, there are a tiny percentage of towbars fitted and even fewer in use. Our reviews of Shark 6, Cannon Alpha highlight the gulf between the advanced PHEV drivetrains and the geriatric industrial past found in the rapidly aging ute segment. Even Kia’s new Tasman revealed itself to be more of the same. Apart from being pig-ugly, it is docile drivetrain is completely inadequate for the market. They completely misread the room by going for the over-saturated tradie market instead of the booming leisure market. As these new brands continue to land on Australian shores, they are driving a price war that makes advanced technology more accessible to the average Aussie driver. It is forcing legacy manufacturers to rapidly adapt or risk being left behind, and it seems their glacial change will come too late.
We predict Toyota will also suffer, just as Honda, Nissan, Daihatsu, and Mazda have. Though bother Mazda and Toyota are in strong positions now, both should look over their shoulders for the ghost of Holden. In this industry nobody is too big to fail.
The 2026 Risk Ledger
| Manufacturer | January 2026 Financial Reality | Survival Status |
| Stellantis | $2.68B projected net loss; 140-day inventory glut | Critical Restructuring |
| Mitsubishi Motors | 81% profit collapse; 17.9% sales drop | Zombie Brand |
| VinFast | $11.5B debt; $812M quarterly loss | Insolvent Risk |
| JLR (Jaguar/Range Rover) | $3.6B revenue loss; 43.3% volume crash | Emergency Debt |
| DS Automobiles | 20.7% sales drop; niche volume | Likely Axed |
| Citroën | 20% volume decline; budget pivot | Cost-Cutting |
| Nissan | $4.5B net loss; 20,000 job cuts | Aggressive Liquidation |
| Lotus | 46% revenue decline; liquidity crisis | Technical Bankruptcy |
The Components of Failure
- The NVES “Name and Shame”: The February report will identify Mitsubishi and Ford as top polluters, leading to fines that eat remaining profit.
- The Zero-Product Trap: Jaguar and Maserati paused their current lineups to wait for EVs. This created a revenue vacuum that has left dealers with empty showrooms.
- The Vietnamese Wild Card: VinFast relies on the fortune of billionaire Phạm Nhật Vượng. If the funding stops, the brand collapses.
- The French Retreat: Renault has replaced Stellantis as the largest maker in France. Peugeot and Citroën are losing ground to Chinese brands like BYD.
Other GayCarBoys Stellantis Stories:
- RAM 1500 Laramie VIDEO car review
- 2018 Ram 1500 Road Test and Review
- A Weekend Away in a Jeep Compass with 3 Hot Companions
- Is Jeep Gladiator a Backroom Bar on Wheels?
- 2018 Jeep Compass Limited Review
Alan Zurvas is the founder and editor of Gay Car Boys, Australia's leading LGBTQI+ automotive publication. Before launching GCB in 2008, Alan's automotive writing was published in SameSame.com.au and the Star Observer. With over 16 years of hands-on car reviewing experience, Alan brings an honest, irreverent voice to every review — championing value and innovation over brand loyalty.
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