American automakers advised to pull out of China
Bank of America has issued a rather unusual recommendation to Ford, General Motors and Stellantis, asking the corporations to cut their losses and abandon the market of China.
Two reasons are quoted for the decision. First, the competition on the local market is overwhelming. Second, everything suggests the trade wars between China and the rest of the world are about to get worse soon. In a situation like this, BoA argues, it makes perfect sense not to try to compete against the heavily incentivized CDM companies and instead to focus on the North American segment.
As to why the relations between the countries have gone from bad to worse lately, the organization mentions prohibitive tariffs imposed against China-made electric vehicles imported into the States. The country has already responded with a tariff increase of its own and is considering further economic sanctions against European and American automakers.
Editor Andrew Raspopov
Source:
Forma car NewsNews permanent address:
https://main1.formacar.com/en/news/view/61721.html- Comments | 0
- Facebook |
- VK | 0