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U.S. "Big Three" automakers facing more challenges in China: auto expert

CHICAGO
2019-05-08 14:30

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General Motors (GM), Ford and Fiat Chrysler Automobiles (FCA) are facing more challenges in China, said an auto industry expert on Monday at an Automotive Press Association event in Detroit, local media have reported.

Detroit News reported that Michael Dunne, CEO of Chinese automotive adviser ZoZo Go, said the Detroit-based Big Three automakers risk losing ground to Chinese companies in the race to the Auto 2.0 spaces of mobility autonomy and electrification and in brand equity, as Chinese automakers and tech companies improve their products.

China's Big Three in technology - Baidu, Alibaba and Tencent - are aiming to lead on key technologies like autonomous vehicles, electric vehicles and connectivity.

According to Dunne, U.S. automakers are "vulnerable" in the world's largest automotive market. Even GM's "profit machine" in China is at risk as sales fell in 2018 - the first year-over-year decrease in at least a decade - and in the first quarter of 2019.

The bright spot for U.S. automakers operating in China continues to be luxury brands. GM's Cadillac and Ford's Lincoln resonate with Chinese customers in a way that mass-market vehicles mostly do not.

Cadillac sold some 154,700 vehicles in the United States last year compared to 205,605 in China. Lincoln, which is hoping to continue strengthening its position in the Asian market, sold 55,315 vehicles in China last year compared to 103,587 vehicles in the United States.
 
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