Chinese EV Companies Rule The Auto World

BYD, China’s largest EV company, is aggressively moving into Brazil, the world’s sixth largest car market. It is on its way into Southeast Asia, and is starting to become entrenched in India. Tariffs block it out of the US and most of the EU. In a world of tariff wars, there is no telling how long that will last. 

In China, US car companies used to make fortunes. In some cases, China was more profitable than the US. Chinese EV companies have almost forced their US rivals off the Asian continent. 

Ford And GM

The China EV companies have the US surrounded. Their home nation is the only place they are likely to continue to be profitable. However, Ford and GM have rising labor costs, and huge investment in EV research and protection that they will not get back for years. Even if protected in the US, their profits are limited. 

Jim Farley, the CEO of Ford, recently said how anxious he was about his company’s lack of firepower to take on the Chinese. He has no reason to argue he can change that.

It is not many decades ago that GM had close to 50% of the US market and a major presence around the world. Its management has no reason to believe that it can claw back an ever small piece of that.