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Top BofA auto analyst says Detroit automakers need to exit China as soon as possible

·1 min

General Motors, Ford Motor, and Stellantis Urged to Exit Chinese Market

Bank of America’s top automotive analyst has advised General Motors, Ford Motor, and Stellantis to exit the Chinese market due to increasing competition from local Chinese automakers such as BYD and Geely. The analyst suggests that the traditional Detroit automakers focus on their core products and more profitable regions, as China is no longer considered a core market for these companies. Furthermore, there are geopolitical risks and uncertainties for U.S. companies operating in China, including the recent announcement by President Joe Biden to quadruple tariffs on China-made electric vehicles. However, the analyst notes that the U.S. electric vehicle leader Tesla may have an advantage due to a lower cost of EV components compared to the traditional Detroit automakers.