OK, I'll admit it, my headline is a little but overblown.
But, the rise of Chinese carmakers is sending shock waves through the global auto industry.
For example:
Via the
Wall Street Journal (gated):
- In the U.S., General Motors said this month it was taking $5 billion in charges related to its China business
- In Germany, Volkswagen is threatening to close factories and cut tens of thousands of employees ... One of the underlying causes is the hit to VW’s profits from lost market share in China.
The Journal article points to three China developments behind the moves:
1. Over half of new cars sold in China today are either fully electric vehicles or plug-in hybrids
2. Three in five Chinese buyers are choosing a domestic brand, the highest ratio since the country emerged as the world’s largest car market.
3. China’s passenger-car exports quintupled between 2020 and 2023, hitting 4.1 million vehicles last year, according to industry data.
Things are only going to get worse for non-Chinese vehicle brands, before they get ... worse still.
This article was written by Eamonn Sheridan at
www.forexlive.com.
