Americans Losing Ground In China - Why Can't The Detroit 3 Hack It On The World Stage?

Americans Losing Ground In China - Why Can't The Detroit 3 Hack It On The World Stage?

American carmakers are losing ground in a shrinking Chinese market, and their problems are mostly tied to a lack of competitiveness rather than the trade war, an industry body said.

The market share of U.S. brands fell to 10.7 percent in the first eight months of 2018 from 12.2 percent a year earlier, according to the China Association of Automobile Manufacturers. The drop was caused by companies including Ford Motor Co. not refreshing their lineups in a timely manner, Xu Haidong, the association’s assistant secretary general, said Tuesday.


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USNA1999USNA1999 - 9/11/2018 11:31:39 AM
+3 Boost
We think their cars are junk; they think our cars are junk. Hmmm, we could both be right.


TomMTomM - 9/11/2018 12:26:10 PM
-6 Boost
Actually - the problems are many
1 - Virtually ALL Chinese cannot afford the annual price of gas for most American cars. THEY survive on Bicycles and Mopeds. Some Chinese makers - including some associated with our makes - make really small stripped cars - sort of the Chevette of today - that some can afford - but reality is - unless they have a business and can make grey money - they cannot really buy foreign cars because they do not make enough money IN THEIR LIFETIME to cover the cost.
2 - The current economic problems with the USA are causing problems for the upper-middle class - that CAN afford some small foreign cars. WHen you add 25% to the price of them - they simply are not competitive with local offerings at all.
3 - THe tariff problems with the USA are causing major resentment - regardless of who you blame for them - it ends up being a demerit for the US companies - and the Chinese - when told not to buy American product - actually stop buying the product - and shun others who did.


xjug1987axjug1987a - 9/11/2018 3:02:14 PM
+8 Boost
The problem with China is their "one way" trade policy and any one that thinks they are our friend is nuts. China wants to replace the US in every global leadership capacity, period so trade issues are going to happen. All foreign auto companies must pay huge tariffs on imported cars & truck OR create a JV w/a Chinese (State owned) auto company and they MUST share technology. It allows access to their market with a gun to the head of any company. So, your #1 doesn’t have any merit as a majority of cars are produced in country for internal consumption. #2 is irrelevant as well as the Chinese people LOVE all things USA, thus their crazy appetite for Buicks and now Cadillacs. #3 is also irrelevant as in country built American cars are not subject to any tariffs. Love the thinly veiled attempt to blame our awesome President of the United States for this when in fact it’s the Chinese that have created this situation. T is attempting to create more favorable trade for US Companies and American citizens, long term. As China created the environment of the gun, why should we not look out for our own interests? I say anything China does to prevent US made goods from selling there must be mirrored here for Chinese made goods. That means Walmart can’t make as much on Chinese junk, so be it, we have a $500B deficit w/China and that wealth out flow must stop. Europeans are Socialistic snobs, so they’ll likely never buy American cars.

That said, Ford & GM are simply falling behind, and I'd say they are not building compelling vehicles that are compelling values. GM vehicles follow, they don't lead in any way and give customers "just enough" whereas the Koreans are selling significant value if not in boring packages. The Germans offer luxury and performance and perceived engineering superiority and the Japanese provide quality, value and durability. Also, especially the Japanese keep their names, everyone on the planet knows what a Civic is or an Accord or a Corolla but what about a Cruze or a Traverse? As "ALL" cars are getting more and more identical mechanically the interiors and exterior styling need to set their vehicles apart. So, in a nut shell, superior styling and interior touch points with industry leading durability and quality. Then market them “long term” with repeated messages of such.

I'm a big American car fan but there are only a few that I would spend my $ on and I'd probably buy one that is a year or two old at that.



quizzquizz - 9/11/2018 3:01:25 PM
+4 Boost
Obviously, it's because the Chinese car companies are superior, duh. What else could be the reason? Let's see Chinese cars sell for $15,000 and look amazingly just like a Range Rover. The Ford Explorer sells for $70,000 in China. Hmmmm...


TruthyTruthy - 9/11/2018 3:22:18 PM
-9 Boost
Once again, Agent 009's grudge against GM appears in the title. According to the article, GM's sales are up 0.7% in a falling market. FCA is London based, so this is really an article about Ford's less than successful strategy in China which is not news.
And yes, the Chinese I know are growing reluctant to buy American due to the uncertainty created by the tariffs.
DD does it again.


MDarringerMDarringer - 9/11/2018 9:05:00 PM
0 Boost
False thesis: "American carmakers are losing ground in a shrinking Chinese market, and their problems are mostly tied to a lack of competitiveness..."

If the market is shrinking, Chinese buyers are probably putting their money on Chinese brands. Competitiveness may have very little to do with it and nationalism far more.


countguycountguy - 9/12/2018 11:31:20 AM
+1 Boost
Because their vehicles are not appealing.


CANADIANCOMMENTSCANADIANCOMMENTS - 9/15/2018 8:48:34 AM
+1 Boost
There are something like 21 Ferrari dealerships in China. If you may appealing cars, the consumers they are targeted at will buy them.


MDarringerMDarringer - 9/15/2018 9:08:52 AM
+1 Boost
Of course those consumers aren't normal people, but ones that have more money than God Himself. It's far easier to build a Ferrari for its clientele then an Accord for its clientele.


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