Now the opposite is true. GM is making record profits at home, but it’s losing enough money in China that there are questions about how much longer it can stay. At the same time, Chinese automakers have flooded their home market with exactly the sort of desirable electric vehicles that Chinese buyers want and American automakers once dismissed.
The result has been catastrophic for foreign automakers in China. GM’s Chinese sales are down 19% over the first nine months of the year, and it has lost $347 million on its Chinese joint ventures over the same period. Earlier this month, it announced its net income would be reduced by more than $5 billion due to the problems in China.
