As the global automotive sector accelerates its transition toward electronic and electrical (E/E) architectures, a silent profit crisis is taking hold. According to a new report from Ernst & Young (EY), the world’s top 19 automakers saw their total revenue decline by just 1% in the second quarter of 2025—but their combined profits plummeted by a staggering 55%. For the first half of 2025, total industry profits are down 49% year-over-year.