Ford vice chair warns tariffs make global automakers easy prey for Chinese conquest [Yahoo! Finance]
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Source: Yahoo! Finance
The real threat right now is China, he said, and tariffs only worsen domestic automakers' ability to fight off future competition. Not only do tariffs put the U.S. at a short-term disadvantage; Lawler said on a Bank of America conference call April 16 that they irreparably harm any other automaker's ability to do business in North America once Chinese automakers arrive. “I don't think we can say no, they're not going to come to the U.S.,” he said. “The Chinese are coming, and they are a force to reckon with.” China once served as a haven for global automakers to lower costs and generate enough capital to fund costly innovation projects in the U.S. But both Ford and its crosstown competitor General Motors are working to restructure Chinese operations. GM said it is shuttering facilities and taking on $5 billion in restructuring costs Global automakers enjoyed a large chunk of $80 billion in profits from the China auto market, Lawler said, but over the past three years, profits
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