Morgan Stanley Analyst Adam Jonas Proposes Partnership Route For Legacy Automakers Amid Chinese EV Dominance
Portfolio Pulse from Anan Ashraf
Morgan Stanley analyst Adam Jonas suggests that partnerships with each other or with China could be a strategic move for legacy automakers like Ford, General Motors, and Stellantis to compete against Chinese EV dominance. He emphasizes the inextricable link between mass EV adoption and China, noting the challenges of diversifying from Chinese supply chains due to cost, time, and regulatory hurdles. Jonas highlights Mexico's potential role as a bridge for China, with Chinese suppliers, including BYD, looking to establish plants there. Partnerships with startups, China, Tesla, or among themselves are seen as vital for legacy automakers to strengthen their EV supply chain.
February 16, 2024 | 5:12 am
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Ford is advised to consider partnerships to strengthen its position in the EV market amid Chinese dominance.
Given the strategic threat posed by Chinese EV makers, partnerships could provide Ford with the necessary resources and technology to compete effectively.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
General Motors is encouraged to form partnerships to navigate the competitive landscape of the EV market.
Partnerships could offer GM access to critical technologies and markets, essential for competing with low-cost Chinese EVs.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Stellantis is advised to explore partnerships as a strategy to compete in the EV market against Chinese manufacturers.
Engaging in partnerships could be crucial for Stellantis to secure a competitive position in the EV market by leveraging shared resources.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Tesla is mentioned as a potential partner for legacy automakers to strengthen their EV supply chain and market position.
Tesla's established presence in the EV market makes it a valuable partner for legacy automakers looking to enhance their EV strategies.
CONFIDENCE 80
IMPORTANCE 65
RELEVANCE 70