Reported 8 months ago
Bank of America (BofA) analyst John Murphy warns that due to the high cost of transitioning to electric vehicles, Detroit's big three automakers General Motors, Ford Motor, and Stellantis should exit the Chinese market 'as soon as possible' to preserve capital and focus on core products and more profitable regions. China's increasing competition and rising car production have put pressure on these companies, with General Motors' market share dropping to 8.6% in China last year, its lowest since 2003, and its operating profits declining by 78.5% since 2014. Analysts point out the difficulty for U.S. companies to compete with local Chinese brands and the geopolitical risks they face, while highlighting Tesla's cost advantage in the Chinese market due to its electric vehicle components.
Source: YAHOO