Top BofA auto analyst says Detroit automakers need to exit China as soon as possible
The traditional Detroit automakers — General Motors, Ford Motor and Stellantis — should exit the Chinese market “as soon as they possibly can,” Bank of America’s top automotive analyst said Tuesday.
The traditional Detroit automakers — General Motors, Ford Motor and Stellantis — should exit the Chinese market “as soon as they possibly can,” Bank of America’s top automotive analyst said Tuesday.
The warning from BofA Securities research analyst John Murphy comes amid unprecedented competition in China — the world’s largest auto market — and as the country significantly increases vehicle production for Chinese consumers as well as for global exports.
Murphy, who has previously asked General Motors about exiting the market, said the “D3” automakers need to focus on their core products and more profitable regions.
“I think you have to see the D3 exit China as soon as they possibly can,” he said Tuesday during an Automotive Press Association event to discuss BofA’s annual “Car Wars” report in suburban Detroit. He said, “China is no longer core to GM, Ford or Stellantis.”
It’s a prospect that would have been unthinkable for the automakers, specifically GM, just a few years ago, but the rise of local Chinese automakers, such as BYD and Geely, has put growing pressure on the companies.
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