Bank of America analysts suggest that Stellantis, General Motors, and Ford should exit the Chinese market due to increasing internal competition. Analyst John Murphey‘s advice may initially seem puzzling, given that many consider the Chinese market crucial, with over 22 million cars sold annually. However, due to growing competition from local operators, imports are under more pressure than ever.
According to a prominent Bank of America analyst, Stellantis, Ford, and GM would do well to say goodbye to China
Murphey suggests that Stellantis, Ford, and General Motors would be better off working on ways to make their electric vehicles profitable by focusing on more lucrative combustion models. Last year, over 120 brands offered at least one electric vehicle in China, so competition is fierce. The competition is so intense that Chinese electric vehicle brand Aiways has decided to leave its domestic market and focus on Europe instead. And while General Motors executives still think they can turn things around with new electric offerings, Murphey isn’t so sure.
Speaking to Auto News, Murphey continued: “There’s an enormous amount of work to be done by traditional automakers to reduce the costs of electric vehicles and remain competitive with Tesla.” At the moment, however, no one seems willing to follow this advice. Stellantis itself, although it has stopped building Jeeps in China, has recently invested in Leapmotor, while also forming a joint venture to sell products internationally.
The problem is that Stellantis is struggling with sales even in North America, despite the presence of major brands like Jeep, Dodge, and Ram. To increase sales numbers, according to some rumors, the Group might acquire a major American brand.