cross-posted from: https://hexbear.net/post/6772593

Western automakers are rapidly losing ground in the global car market as Chinese brands surge ahead with faster innovation, lower costs, and aggressive EV expansion. High production expenses, slower decision-making, and dependence on legacy technologies are weakening Western competitiveness. Meanwhile, China’s vertically integrated supply chains and government-backed EV ecosystem are enabling it to dominate key markets worldwide.

https://newsletter.dunneinsights.com/p/the-great-china-joint-venture-boomerang

Then COVID-19 hit, leaving joint-venture factories with massive overcapacity just as the market was pivoting sharply toward electrics.

By the end of 2020, global OEMs were staring at idle plants, excess inventory, and urgent revenue pressure. And with China building cheaper than anyone else, exporting from the joint ventures stopped being a mortal sin. It became a panicked short-term move to relieve financial stress.