Reported 8 months ago
A leading auto analyst, John Murphy from Bank of America Securities, advised legacy U.S. automakers like Ford Motor and General Motors to leave the Chinese market in order to preserve capital amid the costly electric vehicle (EV) transition. This suggestion was made during his presentation of the 'Car Wars' industry report, emphasizing the need for harsh cost-cutting measures to compete with EV manufacturers and international carmakers. The Detroit Three, facing slower EV sales, are urged to aggressively manage their core business and focus on reducing spending, especially in gas-engine operations. The Chinese market has proven challenging for foreign automakers due to strong loyalty to domestic brands and increasing tariffs on Chinese EVs imposed by the U.S. Ford and GM have seen declining sales in China over the past decade, prompting a shift towards transforming their businesses into export hubs.
Source: YAHOO