U.S. automakers left behind as China’s tariff actions boost Europe, Japan
- Auto exports to China set a record $7.4B last month, but the benefit went to European and Japanese companies as U.S. automakers were blocked from the gains due to China's addition of the retaliatory 25% tariff on U.S.-built vehicles.
- A tariff cut to 15% from 25% which does not include U.S. automakers encouraged foreign manufacturers to ship 165K cars into China last month, breaking the previous record of 134K set in July 2014.
- The combination effectively has priced U.S. imports out of reach of all but the most affluent customers.
- Ford (NYSE:F) says its July sales in China fell 32% Y/Y to 57,662 vehicles, although its sales in the country already were sinking, down 38% in June to wrap up its worst-ever first-half year in China since starting operations in the country in 2001.
- Ford announced plans yesterday to launch an “entry-level” SUV early next year in China, developed jointly with local partner Jiangling Motors, in an attempt to revive struggling sales.
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