General Motor Co. and Ford Motor Co., first- and second-largest US automaker told later on Friday, the 5th of July 2019, that, the carmakers had failed to post a quarterly profit again in China, as the US automakers in China kept hurting amid a slowing Chinese economy over the narratives of an eleven-month-long tit-for-tat tariff warfare with United States.
Detroit-based General Motor Co.’s sales in China fell by 12.2 percent for the quarter ended on June 30th, while sales of the US carmaker, Ford Motor Co., headquartered in Dearborn, Michigan, in China had tumbled by 21.7 percent during the second quarter of 2019.
According to the industry analysts, the Detroit-based carmaker had been struggling to grapple with steep competitions from rivals over its best-selling mid-priced SUVs, while the Michigan-based Ford’s demand had been facing off heavy blows due to lack of new models to choose from.
As beforementioned, it had been second consecutive quarterly losses in China for both of the US automakers, as during the first quarter, Ford’s sales were seen tumbling by 35.8 percent, and GM’s 17.5. As a matter of fact, recent economic data on China had been indicating a much-weaker than anticipated domestic demand amid a 25 percent tariff hike on US exports and a spiral downwards in terms of sales in China was expected, as shares of both of US carmakers had barely shown any reaction to the news.