Growth Engine for the World’s Carmakers Is Becoming a Liability
- Volkswagen, Ford, Renault cite drop in world’s biggest market
- Ride services’ popularity threatens China’s car sales: analyst
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The chief engine of growth for the world’s carmakers is turning into their biggest headache.
In the past 48 hours, auto giants from Volkswagen AG and Ford Motor Co. to Renault SA and PSA Group have pinned flagging profits and weakening sales outlooks on a slowdown in the world’s largest auto market. The companies spent billions of dollars over the past two decades setting up production and sales channels in China, as rapid growth saw millions buy first -- and second -- cars, only to see demand fizzle as the economy wavers.