(ConservativeSense.com) – Bank of America’s top automotive analyst has advised America’s most prominent car manufacturers to remove themselves from the Chinese market as soon as possible. John Murphy urged Ford, General Motors, and Stellantis to focus on profitable regions amid an exploding Chinese domestic market and an impending transition to electric vehicle (EV) government mandates.
At the Automotive Press Association in Detroit, Mr. Murphy urged the three leading US companies to “aggressively manage” their core business and acknowledged that the transition to EV manufacturing would be challenging, particularly as China already dominates that market.
Mr. Murphy further warned that things would get even tougher when President Biden’s tariff increases took effect in August. President Biden announced a tariff jump up to 100% in May, saying this would boost US manufacturing. “I’m determined that the future of electric vehicles be made in America by union workers. Period,” the President said.
A White House statement claimed the tariff hikes, combined with government subsidies, would build an internal US supply chain that creates jobs and promotes green energy. US Trade Representative Katherine Tai added that the tariffs intend to give American manufacturers “a break” and “time to breathe.”
Critics noted, however, that the policy contradicted the Biden administration’s carbon-cutting plans. Detractors argue that the tariff policy prevents or delays proposals to fill US roads with electric vehicles, which the administration had previously prioritized. Proponents say that while there may be short-term delays in realizing domestic EV growth, increasing internal green productivity better serves America and climate goals in the longer term.
Surveys reveal that US consumers have mixed feelings about the exclusion of Chinese cars from the American market. Some motorists believe it would benefit climate initiatives to make access to Chinese vehicles easier but also understand the need to boost American carmakers. While shopping for an EV, Arvind Srinivasan told reporters he would “without question” buy a Chinese car if it was cheaper. However, he added that concern for the American market would ultimately dissuade him.
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