No. of Recommendations: 1
It would be that hard to ditch the Chinese suppliers. We are going to ditch the US consumer first.
I remember the Detroit newspapers reporting the first of the big three to start buying parts from China, 20+ years ago. iirc, it was Ford. Ford and GM both spun off their in-house parts operations, as Visteon and Delphi, so they could outsource parts. Visteon and Delphi quickly went bankrupt.
This is a different situation than the "shortage" narrative that OEMs were leveraging to increase prices and fatten margins, in 2021-22. The vendors have sunk a great deal of capital into supporting the OEM's push into EVs. While I have been watching Farley's shucking and jiving at Ford, to avoid writing off the Billions that company has at risk in EVs, until after he retires, the vendors are looking at the same EV trajectory. It's hard to believe those vendors did not have a cancellation clause in their contracts, so they could recover their investments from the OEMs.
Either way, the US' pivot away from EVs is going to send tens of Billions to money heaven.
Steve
