General Motors' China business is hurting, and it's not just because of Covid
GM's market share in the country, including its joint ventures, has plummeted 34% since 2015, for multiple reasons.
" Houston, we have a problem."
General Motors’ China business is hurting, and it’s not just because of Covid
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" Houston, we have a problem."
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Barra's Quote
Declining Market Share is nothing New to GM, The ramifications however, seem to go unnoticed. Costs of doing Business spread out over many units vs fewer, The costs of R&D spread out over many Brands rather than fewer. It all adds up
Awh, but she "Is".
Declining Market Share is nothing New to GM, The ramifications however, seem to go unnoticed. Costs of doing Business spread out over many units vs fewer, The costs of R&D spread out over many Brands rather than fewer. It all adds up
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Looking at the 2015 vs. 2022 chart at the bottom is really telling that this isn't a "GM" issue, but one shared by virtually all foreign makes, the only foreign make bucking the trend is Toyota that went up several notches and sort of VW (swapping with #2 isn't that big of a change). The popular Hyundai has fallen off the top ten, Renault-Nissan-Mitsu has plummeted.
I'd say it is not very surprising with the local brands really stepping it up, which was the Chinese governments stated intention the entire time. The forced partnerships were to force Western makes to teach the Chinese. They've learned and are now putting out slick product, so of course they are taking market share.
If I were GM I'd keep a close eye on the situation and not let it turn into a GM Europe situation with year after year of losses. They need to hurry up with their Durant House thing and make themselves strong in the top end. I think Cadillac and other high end GM offerings are where the real future lies.
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I'd say it is not very surprising with the local brands really stepping it up, which was the Chinese governments stated intention the entire time. The forced partnerships were to force Western makes to teach the Chinese. They've learned and are now putting out slick product, so of course they are taking market share.
If I were GM I'd keep a close eye on the situation and not let it turn into a GM Europe situation with year after year of losses. They need to hurry up with their Durant House thing and make themselves strong in the top end. I think Cadillac and other high end GM offerings are where the real future lies.
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Attempting to poach Tesla owners while they charge
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Why would you say they don't notice basic accounting? I think they are very much aware of declining profits.
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Good idea for Cadillac! I don't see what is wrong with this as long as they aren't harassing people.
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I saw this on youtube yesterday. It claims (a little after the 8:00 mark) that they could be approaching market saturation.
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Because the Market for EV even in NA, isn't $100,000+ 800hp+, 10,000lb+ vehicles. It is in the $20,000, 2 passenger commuter. GM has never been good at Profit in Small. Ultium might be an excellent product, but it is or needs to be used in larger vehicles at higher costs
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You mean hybrids? I'm fine with their explanation as to why they skipped out on that market.
Yup, to start Ultium is a high-end product, just like most new tech. Once those Ultium factories are up to speed then they can profitably build lower end models, which is exactly the path GM is taking. But just like for ICE, the profits are in the high end vs. the peanuts at the bottom for a 1st world manufacturer. I think GM is very well aware of the situation and why they aren't trying to launch expensive new tech at the bottom end - the Prius is a bad business model to follow in the case of BEV.
VW doesn't make any money at the bottom either. I think Japan's declining population and other unique aspects, which put their economy in the dumpster, is the only reason they can be a 1st world country that is profitable in the lower end.
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Wow - I had no idea. In other words we will see a lot of bankruptcies and net losses coming out of China. GM will need to decide if they want to dig deep and support these losses until the market stabilizes - but how long might that take?
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That market has been ripe for manufacturer consolidation/contraction, looks like it may finally be starting.
Absolutely. However don't discount, as mentioned in the video, that the market has been Policy driven, not Market driven up until now. Both have played a factor as to where we are today.
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Huh, too bad nobody saw this coming years ago?
Wonder what the actual ROI is over the entire time GM gave china all its technology and assembly processes?
China hasn't made squat in revenue over the last decade, maybe 1/10th that of the N/A operation.
Most companies/nations advance through reverse engineering and corporate espionage but the chinese auto makers were given everything on the proverbial silver platter due to the partnerships required by the government, jmo.
Wonder what the actual ROI is over the entire time GM gave china all its technology and assembly processes?
China hasn't made squat in revenue over the last decade, maybe 1/10th that of the N/A operation.
Most companies/nations advance through reverse engineering and corporate espionage but the chinese auto makers were given everything on the proverbial silver platter due to the partnerships required by the government, jmo.
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Indeed. They need some training or counseling in suicide prevention. If it's not too late.
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It should come as no surprise because China tends to let industries in so they can massively ramp up their learning curve. Once they are up to speed they suddenly become unfriendly to foreign businesses.
How many times do these companies need to see this played out before they learn. It’s truly mind boggling. I guess the money is just too alluring.
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Management will do this in the beginning because they look good, collect bonuses, and leave long before the damage manifests
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I think, small cheap, 50 mile commuter, more than a Scooter, but by no means a Family Truckster. I would commute in a toy, if it were cheap, plug into a 15 A-120V circuit and charge in 8 hours. to drive back to work the next day
Not that I would give up my ICE Trucks, but I would start to believe in EV and step towards larger life with BEVs as Battery and Tech grows.
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Isn't that a Nissan Leaf?
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No smart intelligent ethical patriots in upper management? This pattern, repeated time and again, doesn't require an Einstein to figure out.
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