DETROIT – The traditional Detroit automakers – General Motors , Ford Motor and Stellantis – should exit the Chinese market "as soon as they possibly can," Bank of America's top automotive analyst said Tuesday.
Murphy, who has previously asked General Motors about exiting the market, said the "D3" automakers need to focus on their core products and more profitable regions.
It's a prospect that would have been unthinkable for the automakers, specifically GM, just a few years ago, but the rise of local Chinese automakers such as BYD and Geely has put growing pressure on the companies.
While the Detroit automakers need to rethink the way their doing business in China, Murphy said it's slightly different for U.S. electric vehicle leader Tesla .
Murphy said Tesla, like Chinese companies, has a roughly $17,000 cost advantage in EV components compared to the traditional Detroit automakers to assist it in the Chinese market, allowing it to have "more room to run."
Persons:
John Murphy, Murphy, Geely, Joe Biden, it's, Tesla
Organizations:
Automobile Works, FAW, Haima, Co, Detroit, –, Motors, Ford Motor, Bank, BofA Securities, Automotive Press, GM, Ford
Locations:
China, Haikou, Hainan Province, DETROIT, Detroit