It’s predicted that China’s automotive sales may slow for the first time in over a decade this year, just in time for Ford and General Motors to start ramping up production at their Chinese factories.
According to Bloomberg, both Ford and GM last year ramped up their carmaking in China by 30 and 20 percent, respectively. However an AlixPartners study indicates they are now dealing with a more turbulent market, which make take a negative toll on both company’s profts.
“The growth rates are slowing down,” AlixPartners’ John Hoffecker told Bloomberg in a telephone interview. “The question is, what will happen to pricing and profits? China is a stronghold for GM and many others.”
Despite the downturn in car buying in China, some analysts still see the market as a good place for automakers to be. Bloomberg predicts China will buy up around 20 million automobiles in 2016, 3 million more than Americans are projected to buy.