As trade friction grows, General Motors wants its suppliers to stop sourcing parts and raw materials from China by 2027, according to a new report, though meeting that deadline could be challenging considering the way the global network has been set up over the last few decades. More from Headlight.News.
General Motors reported a 35% decline in net income for the second quarter of the year, much of that due to the new Trump tariffs which took a $1 billion bite, the automaker reported. More from Headlight.News.
President Trump’s tariff battle is putting both General Motors and Ford Motor Co. luxury plans under a cloud. Both the U.S. and China have heated up tariffs, even while the president paused other portions of his trade plan.
Not all that long ago, foreign manufacturers like General Motors, Ford and Volkswagen dominated the Chinese automotive market where, in some cases, they were making their biggest profits. Now, as domestic competitors like Geely and BYD gain traction, times have changed. On Wednesday, General Motors revealed plans to take more than $5 billion in charges to restructure its Chinese operations and is likely to close some of its plants there. But it’s far from the only international manufacturer struggling in the world’s largest automotive market.
The auto industry is in the midst of the most unsettling shake-up its seen in more than a century and that’s likely force radical change in not only what products manufacturers bring to market but how and where they sell them. For one thing, Detroit automakers should consider pulling out of China, said Bank of America analyst John Murphy as part of his annual “Car Wars” study.
When the new Lincoln Nautilus goes on sale this spring it will mark a significant development for parent Ford Motor Co., the first time it imports a vehicle to the U.S. from China. The move will help keep the U.S. automaker’s factories there running as demand for its products has tumbled sharply in the Asian nation. But Ford is not alone. Detroit automakers – along with other foreign brands – have seen their Chinese sales – and earnings – plunge as consumers by the millions shift to domestic competitors. Could the Chinese now turn the tables on the U.S. at home? Find out at Headlight.News.