Why American Automakers Are Failing In China

Detroit automakers like General Motors made a fortune selling cars to Chinese consumers after the Asian country opened its auto market to foreign firms in the 1980s. But the good times are over as Chinese firms have caught up with the foreign firms who once taught them the automotive trade. Top names like BYD, Geely and Great Wall are now making globally competitive products and many companies with tech backgrounds are entering the industry, too, including Li Auto, XPeng, Nio, Xiaomi, Huawei, Baidu, Tencent and Alibaba. Jeep’s joint venture already went bankrupt, and one industry analyst said he expects Ford and GM to withdraw from the country in the next five years along with other such as Hyundai, Kia and Nissan.

Chapters:
00:00 - 2:09: Why American automakers are failing in China
2:18 Chapter 1 - A massive market
4:13 Chapter 2 - Rise and fall
6:15 Chapter 3 - How it happened
11:22 Chapter 4 - High Productivity
14:27 Chapter 5 - What’s next

Producer: Robert Ferris
Editor: Darren Geeter
Animation: Jason Reginato, Christina Locopo
Senior Managing Producer: Tala Hadavi
Editorial Support: Jeniece Pettitt
Additional footage: Getty Images, BYD, Polestar, Hyundai Motors
Additional sources: FactSet, Tesla, General Motors, Kiel Institute

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Why American Automakers Are Failing In China

[dha]

American automakers are failing in
America. Why would they do any better in other countries?

[lil----lil]

I'm still trying to figure out why a GM/Ford truck is charging $80K for a stupid truck.

[kobej]

We don't even buy American made cars here in the US. Why would the Chinese buy America cars when Chinese cars are cheaper and better these days.

[caz]

Imagine being a boxer and the other fighter starts screaming at you for your punches being 'over capacity'😂

[jbcom]

China invested in its own development only a fraction of what US did on sparking wars in Middle East. And that brought outsized results to China.

Imagine what the US would look like if it spent on its own people instead of creating human devastation.

[hbkmog]

If not for the high tariff and protectionism, American automakers would fail in the US as well lol.

[ngg]

Nobody complain when European American Japanese cars flooded the Chinese market during the past 30 years . Now European American Japanese started blaming China of overcapacity of cars😮

[BriarLeaf]

Ever notice how the media, when talking about "state support" in China will show pictures of police, for no real reason at all, but when talking about the same thing in the west will show video of hospitals and factories? Like, what exactly do Chinese cops have to do with government investment?

[canto_v]

Did I just watch a factual, well-researched piece of American journalism on China?!??! Surprised AF.

[BangkokZed]

Chinese automakers received $27 billion in subsidies to produce better vehicles, while General Motors and Chrysler received a $80 billion US bailout under the Troubled Asset Relief Program (TARP) to avoid bankruptcy.

[EasyTradeAfrica]

As a foreigner living in China, I have been driving a Chinese car, the Lynk & Co 06, for four years without any major problems. I can confidently say that the quality of Chinese cars is continuously improving. This progress is evident in their collaborations with major international brands such as BMW, Mercedes-Benz and more…

[liqingyuan]

Obviously, American companies prefer to use their funds to buy back shares rather than invest them in innovation.
Greed is not always good.

[hifivingstarfish]

Just 20 years ago, people thought China can only copy and replicate but not innovate. 20 years later, nearly every sector is being challenged or surpassed by China. Those who doubt the Chinese, don't really understand China. They have the scale, work ethic, and the brains to take the lead in nearly every industry. It's just a matter of time.

[jingle]

The trade war initiated by Trump in 2018 changed Chinese people's attitude towards American brands.

[Raymond-hs]

The Video is correct. I was an Engineer at GM in the US in the 80s, went to Europe in the 80s-90s, and worked with Opel and mainly trained their Engineers on Tooling in Germany, and Spain. Worked in the 90s and 2000s in the US and Mexico doing the same. Then in 2003, I went to China to do the same. I helped to teach Chinese Engineers and Shops how to make high-quality tools for cars, after 10 years in China GM decided I was no longer required, so I was let go. No Job, No Money, My wife divorced me, the kids went on their way, out of college and I was left alone.😯

[jjola]

There are no Huawei phones in the United States, but Apple phones are everywhere in China. Who is the free market?

[JCSY]

US cars are not preferred by most people outside of the US. For ICE cars, most prefer Japanese, Koreans, Germans, Europeans and Chinese.

[digglerdudeuk]

Once the $10k BYD Seagull is international it's game over.

[godzillamothra]

if americans themselves have enough with american cars, why expect foreigners to love american cars?

[Justspinwin]

As a Chinese I am quite shocked to see this cuz I never think of America when talking about cars LOL.