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China's Auto Industry Shows Why GM and Ford Are Stuck in a Catch-22

16 Sep 2023 | Abstracted from Electrek

"Battery-electric vehicles' penetration of new car sales in China is set to finish 2023 at roughly 25%...automaker profit margins have declined as their core market has given up ground to battery-powered cars...Profit margins should be rising for car companies when industry volumes are strong. But the bulk of the gains are accruing to EVs..

"...the crux of the problem for Ford (F) and GM (GM). If they don?t invest aggressively in EVs, they risk losing market share and seeing profitability erode. And if they invest in EVs - which both are - there is no guarantee they will win against upstarts such as Tesla and Rivian..."

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