"GM, Ford, Stellantis Must Quickly Exit Chinese Market"

"Chinese Military's 'Home Ground Advantage' Hard to Overcome"
"Must Focus on Key Regions and Products"

GM, Ford, and Stellantis, the 'Big Three' American automakers, have been urged to exit the Chinese market as soon as possible.

On the 18th (local time), CNBC reported that John Murphy, a Bank of America (BoA) Securities research analyst, argued that "the Big Three manufacturers should focus on core products and more profitable regions."

Ford Explorer production line
Photo by AFP Yonhap News

Analyst Murphy stated, "China is no longer a core market for GM, Ford, and Stellantis," adding, "They need to leave China as soon as possible."

CNBC analyzed that just a few years ago, such a prospect was unimaginable for manufacturers like GM, but with the rise of local Chinese manufacturers such as BYD and Geely Auto, pressure on the American Big Three has intensified. GM's market share in China, including joint ventures, has halved from 15% in 2015 to 8.6% last year.

Analyst Murphy pointed out that it is difficult for American manufacturers to overcome the home-ground advantage of local Chinese manufacturers. He said, "Core businesses must be managed very aggressively."

GM executives have stated that they can regain market share in China by leading with electric vehicles. However, geopolitical uncertainties have recently increased. After U.S. President Joe Biden announced last month that tariffs on Chinese electric vehicles would be raised fourfold from the existing 25% to 100%, U.S.-China relations have deteriorated. The risk of retaliatory measures is high.

Analyst Murphy said that while American automakers need to reconsider their business operations in China, Tesla is somewhat different. Because the cost difference in electric vehicle parts between Tesla and the Big Three manufacturers is about $17,000 (approximately 23.46 million KRW), Tesla has more room to maneuver.

This content was produced with the assistance of AI translation services.