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Joined 10 months ago
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Cake day: November 17th, 2025

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  • Wasn’t that a couple of days ago the same VW story?

    We must say that the entire industry is in crisis, not just Volkswagen. In China, only three carmaker are profitable (BYD, Xiamoi, Leapmotor), and all three show shrinking profits. This is despite Chinese brands benefiting from tremendous subsidy regulations that have never been available for their global competitors, a cheap workforce through forced labour regimes, which allows them to produce massive overcapacity that Chinese brands then need to sell globally due to a shrinking domestic Chinese market. And not to forget overly long payment terms as suppliers in Chinese value chains often wait up to 10 months for getting paid (the average for European value chains is 5 to 8 weeks).

    China’s overcapacity is a decisive reason for the entire sector’s crisis imo.









  • Your comment is not true.

    German carmakers (or any non-Chinese companies in any industry) are not even allowed to run a subsidiary in China. They always need a Chinese partner with whom they create a joint venture. The Chinese partner would then hold the majority of this joint venture, and it then uses Chinese supply chains. The parts are sourced in China.

    This is, for example, why Volkswagen exited its joint venture with Chinese company SAIC a couple of years ago after the German company couldn’t reliably prove that the supply chains in China were free of forced labour. The problem simply was (and still is) that Chinese supply chains are highly untransparent.

    (The only exemption from China’s rule to force foreign companies into a joint venture with Chinese companies is Tesla. The U.S. carmaker has no Chinese partner.)
























  • Every day more or less the same story by OP. The entire industry is in crisis, not just Mercedes-Benz. In China, those three show shrinking profits. This is despite Chinese brands benefiting from tremendous subsidy regulations that have never been available for their global competitors, a cheap workforce through forced labour regimes, which allows them to produce massive overcapacity that Chinese brands then need to sell globally due to a shrinking domestic Chinese market. This overcapacity is a decisive reason for the entire sector’s crisis imo.