Transportation
GM, Ford Shares’ Great Revival Stalls as China Threat Brews
- Two analysts downgraded their ratings on GM stock this week
- It ‘may be time for GM to exit’ China, Bernstein says
A General Motors Co. Chevrolet FRN-XE concept electric sedan at the Shanghai Auto Show last year.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
It was expected to be the comeback year for the shares of century-old carmakers, General Motors Co. and Ford Motor Co., but a long overdue catch-up rally is already stalling.
Their deep lineups of gas-driven vehicles were set to win back investors just as demand for electric cars started to falter. But a pair of downgrades this week warned investors of the challenges that have been piling up; flagging interest in American cars from Chinese buyers, prohibitive costs for US customers and traditional automakers’ need to raise massive amounts of capital to build the infrastructure for battery-driven cars and self-driving technologies.