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“Get Out of China!”: The Advice Given to Automobile Companies From Bank of America

A senior analyst at Bank of America is advising major American manufacturers to quickly exit China.

The exodus of Western automobile brands from China continues. Chinese brands have proliferated and evolved to the point where their products perfectly meet the needs of the Chinese market, which is naturally more patriotic. Additionally, China possesses the industrial capability to produce affordable electric cars, which are in high demand. Furthermore, the real estate crisis, highlighted by the bankruptcy of the giant Evergrande, is diminishing the purchasing power of the Chinese, increasing the need for accessible models that European and American companies do not offer.

The situation has prompted a top analyst at BoFA Securities (Bank of America) to urge major American automobile groups to exit China quickly: “China is no longer part of the core business of Stellantis, Ford, and GM.” For Stellantis, which has already scaled back its operations, the situation was already very challenging in China. General Motors is also struggling, with its market share falling below 9%.

Despite Bank of America’s advice, GM seems determined to stay, believing it can turn the situation by introducing new electric models.

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