How Foreign Carmakers Can Stay the Course in China
Foreign carmakers are adjusting to a new reality in China.
Photographer: Qilai Shen/Bloomberg
The latest earnings season hasn’t been kind to Chinese carmakers. But spare a thought for their foreign rivals, whose glory days in the world’s largest vehicle market ended during the pandemic. They’ve had to downsize their footprint and pivot, turning China into a base for exporting to the rest of the world.
So far, the strategy is working. That’s allowed the Detroit Three — General Motors Co., Ford Motor Co. and Stellantis NV — to avoid leaving the market entirely, as some have called for. After hitting a record high of 1.27 million shipments in 2016, Ford’s China sales declined 85% to an estimated 180,000 units last year. It’s been a similar fall from grace for GM, which counts Chevrolet, Cadillac, and Buick, among its biggest brands. Fiat Chrysler, now part of Stellantis, exited its joint venture making Jeeps three years ago.