GM's retreat from China
 

Copy/pasted from the article: Let's keep this non-politcal and out of the Clubhouse.

" It wasn’t long ago that China was by far the largest and most profitable market for General Motors (GM). While the company was hemorrhaging money in North America and Europe, and hurtling towards bankruptcy and a bailout, sales and profits from China allowed it to keep the lights on.

Now the opposite is true. GM is making record profits at home, but it’s losing enough money in China that there are questions about how much longer it can stay. At the same time, Chinese automakers have flooded their home market with exactly the sort of desirable electric vehicles that Chinese buyers want and American automakers once dismissed. "

If I remember correctly, one of the reasons GM kept Buick and got rid of Pontiac was because Buicks were very popular in China.

https://finance.yahoo.com/news/retre...rc=fp_deeplink

I'm sure the new tarriffs have nothing to do with it lol - goes both ways I guess

It’s my understanding that there is a significant GM manufacturing presence within the border of China, and most of the cars sold there are entirely manufactured there. Not sure how the tariffs structure works on that side, but a Buick sold in China employs a lot of Chinese.

Hope Korea and Canada too.

Deflation is a problem in China right now according to several articles I've read this week. Who would want to buy a new car today if they know it's going to be cheaper tomorrow?

I think currently China supplies 60% of the cars in the world. They make 3 times more cars than the USA, and it's not a new thing, ten years ago China was making twice as many cars as the USA. US made car were a status symbol in China in the past, mostly because the domestic cars were horrible. Not so much anymore, they aren't great, but they aren't the joke they were 20 years ago. US car manufacturers are going to have to radically change to stay in business. The old model of surviving off the top 20% most expensive cars they make is going to have to change. They are going to have to produce affordable, profitable cars in volume. Which is going to mean less bells and whistles, less complexity, easier maintenance, lower warranty costs.

https://en.wikipedia.org/wiki/List_o...cle_production

I lived in china a bit, and the Buick was very popular car. Especially as a company car for up and coming small business owners.

My kid waited for a GM vehicle being made in Korea. I’ll never do that again, I’ll just go get a Kia.

Not exactly China related, but interesting APAC information regarding Japan's automakers.

https://www.newser.com/story/361230/...ss_world_img_b

A Honda-Nissan Merger Might Be Imminent

Automakers confirm they are discussing closer collaboration

A merger might be in store for Japan's second- and third-largest carmakers. Honda and Nissan on Wednesday confirmed reports that they are in talks about ways to work more closely together. Sources previously told the New York Times the two automakers are considering a merger, though the AP reports that in confirming the reports, Honda and Nissan downplayed just how close they are to firming up a decision to merge. In the Wall Street Journal's telling, the companies confirmed they are in discussions about future collaborations, and that a merger is one possibility. More:

The companies have already been collaborating this year, working on electric vehicle development along with Mitsubishi (about 25% of which is owned by Nissan). Reports indicate Mitsubishi may also be a part of the talks between Honda and Nissan.

• A merger would boost the companies' ability to compete with Japan's No. 1 automaker, Toyota. If Honda, Nissan, and Mitsubishi all merge, the resulting company would be the world's third-largest carmaker and would be worth an estimated $55 billion.
• The companies are also looking to better compete with Chinese automakers, which are experiencing a rapid rise, and with Tesla and other EV automakers. Both Honda and Nissan are struggling with sales in China, where electric and hybrid vehicles are especially popular.
• After news of the discussions between the companies broke, Nissan's shares were up as much as 22% while Honda's were down as much as 3%. Both automakers have been struggling financially; Nissan recently laid off 6% of its global workforce and Honda's profits fell almost 20% during the first half of the fiscal year compared to the same period a year ago.

Back to China.... While GM was there in force, China "copied" a car, I think its the Chevy "Spark" . This copy has every single part Identical to the Chevy and are interchangeable. I watched this. Not much to do about this theft as China Owns 1/2 of GM there, and 1/2 of the "copy" company..

That is pretty funny. China is copying a car designed and built by Daewoo Motors, in South Korea. Once done copying each other, parent company, (GM) throws a Bow Tie emblem on it and sells it as a Chevrolet in the US. US buyer thinks he is "Buying American" and helping the US economy.

New world odor...