The China Shock Behind the Honda-Nissan Merger Talks [Yahoo! Finance]
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Source: Yahoo! Finance
BEIJING—The rise of Chinese carmakers is reconfiguring the global auto industry, with merger talks between Honda and Nissan the latest example of companies trying to respond to the competitive threat. In the U.S., General Motors said this month it was taking $5 billion in charges related to its China business. In Germany, Volkswagen is threatening to close factories and cut tens of thousands of employees. One of the underlying causes is the hit to VW's profits from lost market share in China. Most Read from The Wall Street Journal His Startup Is Now Worth $62 Billion. It Gave Away Its First Product Free. Why This Frothy Market Has Me Scared What's Behind Masayoshi Son's $100 Billion Pledge to Donald Trump Will the Fed Keep Cutting in 2025? Biden Administration Agrees to Record $15 Billion Loan to PG&E Three fundamental facts lie behind these moves. More than half of new cars sold in China today are either fully electric vehicles or plug-in hybrids. Three in five Chine
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