China 's stock market free fall is affecting automakers , including General Motors and Ford . GEneral Motors now sells more vehicles in CHina than it does in North America , thanks to the country 's large population and growing middle class . Earlier this week , GM said sales of 246,066 from its joint ventures in China increased a negligible 0.4 % in June from a year earlier , despite reducing prices by up to 20 % on about 40 models . Ford on Wednesday reported sales fell 3 % to 83,506 vehicles in June . Linda Lee , professor at the University of Michigan School of Business believes the market is starting to become saturated , with the automakers now having to go after people with less income , those who have lost the most in the recent stock market falls , with many middle income Chinese having retired when the stock market was at a low .
China's stock market free fall is hurting automakers, including General Motors and Ford. GEneral Motors now sells more vehicles in CHina than it does in North America, thanks to the country's large population and growing middle class. Earlier this week, GM said sales of 246,066 from its joint ventures in China increased a negligible 0.4% in June from a year earlier, despite reducing prices by up to 20% on about 40 models. Ford on Wednesday reported sales fell 3% to 83,506 vehicles in June. Linda Lim, professor at the University of Michigan'sRoss School of Business believes the market is starting to become saturated, with the automakers now having to go after people with less income, those who have lost the most in the recent stock market falls, with many middle income Chinese having invested when the stock market was at a high.