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Investors sold after the investment bank's analysts warned about what they called the 'China butterfly effect':
Shares of General Motors and Ford Motor traded lower on Wednesday after Morgan Stanley downgraded the overall U.S. auto sector, citing worries that Western automakers might struggle in the intensifying competition with Chinese rivals.
General Motors was downgraded to "underweight" from "equal weight," and its shares fell 5.4 percentage points, to $45.50. Ford went to "equal weight" from "overweight," with its shares dropping more than 4 percentage points, to $10.43.
Electric vehicle (EV) maker Rivian Automotive and Canadian parts manufacturer Magna International were both downgraded to "equal weight" from "overweight." Shares of Rivian were down 5.7 percentage points while Magna's were off 4.7 percentage points.
Investors sold after Morgan Stanley analysts warned about what they called the "China butterfly effect," a metaphor suggesting that even small surges in China's industrial production capacity could have significant ripple effects across the global market.
[...] Bolstered in part by massive government subsidies, Chinese manufacturers have rapidly emerged as major players in the EV industry, accounting for 60 percent of worldwide EV sales and almost one in five EVs sold in Europe last year.
Both Washington and Brussels have hiked tariffs in response to China's excess production of low-price EVs.
Previously:
- VW Turns on Germany as China Targets Europe's EV Blunders
- Auto Woes
- Chinese Automaker Zotye Plans 2020 Entrance into the U.S. Market
(Score: 3, Insightful) by RedGreen on Sunday September 29 2024, @01:22PM (1 child)
As the old Chinese proverb goes may you live in interesting times. And the the times certainly are interesting for the parasite corporations that have shipped all the jobs to China to take advantage of the slave labor and lax environmental standards. They thought they were doing so well with all those extra profits while doing it, all along the Chinese were taking all their methods of doing things and putting them into to practice in their local companies. Now the chickens come home to roost when those local companies have come close to building a monopoly position in key industries and are dumping massive amounts of product on the world stage to undermine the western businesses. All subsidized by Government of China in their effort to destroy competition to their goods all over the world. And still the parasite corporations are flocking to give even more to the scummy bastards in China, they get everything they deserve. Sure a few are looking to move some production to the next shit hole country run by some authoritarian piece of garbage government who will give them the same or worse human and environmental rights conditions. Very few show signs of doing it in their home counties that made them the success they are/were before they started on this effort to destroy their home markets with these policies they had enacted by the slimy bastard bought and paid for politicians.
"Cervantes definitely was prescient in describing a senile Don fighting against windmills." -- larryjoe on /.
(Score: 2) by mcgrew on Tuesday October 01 2024, @04:51PM
That was an old Chinese CURSE, not a proverb!
The "patriotic" Defense Secretary Hegseth carries an American flag in his jacket's snot rag pocket.