The Chinese learned their lessons well.
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Most of the write-down is from the partnership.
The focus needs to be North American production of EVs. This is a smart pivot.
An assembly line can cost more than $1 billion. Focus on China is a waste.
Remember when “the wise” saw China as an opportunity to get at a Billion customers, and really cheap labor? Remember how Cramer hyped China? Now, the Chinese have learned, and are outcompeting their teachers.
GM also managed to get it’s money back, from a US battery plant that was a JV with LG.
I was pondering which US auto company is best positioned in the event the proposed tariffs are implemented. I came up with Ford. But I just can’t. They build junk, highest warranty claims in the world. Their Chinese operation is doing even worse, much worse, than GM’s, and they have sunk a fortune into EV related facilities, but I don’t recall any big writeoffs at Ford. The writeoffs are going to be impressive, when they finally admit the obvious.
Steve
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