The steady drumbeat of automakers and suppliers cutting their presence in China is almost enough to inspire pity. There’s no need. Strategic reductions, including last week’s announcement by a major Japanese parts maker, are a sign of pragmatism and an acknowledgement that the world’s largest car market isn’t necessarily a profitable one.

Nidec Corp., which makes motors used in power steering systems and electric drive trains, said it would recognize a restructuring expense as it restarts the China strategy to cut costs and limit unprofitable orders. The company slashed its full-year operating income forecast by 18% as a result. Nidec isn’t withdrawing completely, and instead will shift to localizing product development and procurement.

QOSHE - Foreign Auto Suppliers Exiting China Are No Victims - Tim Culpan
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Foreign Auto Suppliers Exiting China Are No Victims

11 0
31.01.2024

The steady drumbeat of automakers and suppliers cutting their presence in China is almost enough to inspire pity. There’s no need. Strategic reductions, including last week’s........

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