American automakers, as well as those based in Europe and other regions in Asia, are in a dire situation in China as sales have plummeted — potentially forcing them to leave the Chinese market.
General Motors (GM) and Ford Motor Company are grappling with what auto expert Michael Dunne describes as “tumbling” sales in China. Other automakers like Germany-based Volkswagen (VW) and Japan-based Nissan are also suffering declining sales as they are out-competed by China-based automakers like BYD.
GM CEO Mary Barra in May said the automaker is “committed to China.” Last week, though, Barra changed her tune, saying the situation is “unsustainable.” And this week VW CEO Oliver Blume described the situation in China as “a major challenge.”
GM, for instance, had $75 million in profits in China in the second quarter of 2023. A year later, though, GM has suffered more than $100 million in losses.
“VW, once the all powerful market leader, is reeling, tracking to lose $500 million in 2024,” Dunne wrote on X. “Foreign automakers — for several reasons — will not be able to recover. They will leave China not with a bang but a whimper.”
Meanwhile, reports have previously suggested that Ford has similarly suffered massive losses in China despite its efforts to stay committed to the communist country.
“Ford no longer reports its financial results by region, but from 2017 to 2022, the company lost roughly $5.5 billion in China,” CNBC reported in May. “[Ford CFO John] Lawler said all of the company’s regions of its traditional “Ford Blue” operations, including China, were profitable during the first quarter, but that unit does not include commercial sales or EVs.”
John Binder is a reporter for Breitbart News. Email him at jbinder@breitbart.com. Follow him on Twitter here.