Ford's and GM's Largest Threat Could Set Up Shop Next Door

Decades ago, foreign automakers were clamoring to get into the Chinese market. The market was blossoming and would become the world's largest automotive market by 2009. However, the Chinese forced foreign automakers into joint ventures with domestic companies to earn their way into the market.Because of these joint ventures, the Chinese automakers developed quickly, and years later, through government subsidies and other incentives, became advanced, particularly with electric vehicles (EVs). The problem for the likes of Ford Motor Company (NYSE: F) and General Motors (NYSE: GM), among others, is that now Chinese automakers are able to undercut on pricing and, due to an aggressive price war in China, are rapidly expanding across the globe.Making matters worse for the two Detroit automakers was a recent shift in North American trade policy that could mean Chinese brands are a mere step away from the lucrative U.S. market.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool