Mr. Musk Goes to China, Vehicles to Pour Forth

Tesla’s sole assembly plant in Fremont, California won’t be lonely for long. A preliminary deal reached between the automaker and the government of Shanghai could see a new assembly plant start production in about three years’ time. The Chinese plant would most likely build Model 3s and upcoming Model Y crossovers, Bloomberg reports.

Assuming Tesla can scrounge up the $4 to $5 billion needed to complete construction of the facility (a Goldman Sachs estimate), the plant could produce up to 500,000 vehicles per year. And it just so happens that Shanghai has a free trade zone.

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Trade War Watch: U.S. Preparing to Limit Chinese Investment

The Trump administration is planning to impose incredibly restrictive investment limits against China. While the barriers could be argued as fair, considering China has some pretty serious restrictions of its own, the timing isn’t great. Treasury Secretary Steven Mnuchin pursued a less confrontational approach toward China after the nation showed some lenience in earlier promises to open its automotive and tech sectors through reduced tariffs, eventually eliminating state-mandated joint partnerships.

This move will no doubt make his job a lot more complicated.

It seems that the limits would restrict certain Chinese companies from investing in U.S. technology firms and block additional tech-related exports to Beijing. Among the industries most affect are robotics, aerospace, and automobiles — which have been labelled by the administration as a threat to economic and national security.

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U.S. to Hit Chinese-built Vehicles With 25 Percent Tariff; China Fires Back

Just in time for the weekend, an escalation in the ongoing trade wars has seen the Trump administration announce a 25 percent tariff on $50 billion worth of goods imported from China. These tariffs include automobiles. For its part, China retaliated by applying a further 25 percent tariff on a similar amount of American goods, including automobiles.

The move comes less than a month after China announced a plan that would lower import duties and eventually allow foreign automakers to set up shop without a joint Chinese partner. Of course, that was then, and this is now.

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Add a Couple More Vehicles to the List of Products That Might Be Chinese

Despite the negative stigma long associated with Chinese-built goods, we’ve grown used to — if not accepting of — the idea that some of our domestic vehicles might originate from a Chinese assembly plant. The Cadillac CT6 Plug-in, for example, hails from the Orient, as does all versions of the Buick Envision crossover. Volvo S90s sold in the U.S. also call China their birthplace.

Now, according to a 2019 model year VIN decoder document sent to the National Highway Traffic Safety Administration from General Motors, there’s two additional models that might carry Chinese heritage. Keep a lookout for a VIN starting with “L.”

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Honda Thinks a Small, Cheap EV Is Just the Right Fit

You’d be forgiven for not remembering the Honda Fit EV. Hardly a Bolt or Leaf, the short-ranged electric was available for lease in California for a very brief time; some 1,100 examples arrived on U.S. shores between July of 2012 and October of 2014.

Right now, the only way to get into an electric vehicle bearing the Honda badge is to move to California or Oregon and take out a pretty decent lease on a Clarity EV. That could soon change, as Honda plans to build a successor to that early electric. Yes, it will still use the Fit as its muse.

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Trade War Watch: China to Reduce Import Tariffs for Cars and Components

China has announced plans to slash import fees on automobiles to 15 percent starting this July. While the tariff currently rides high at 25 percent, the country’s Ministry of Finance said reducing it was part of an intentional effort to open up China’s markets and spur development within the local automotive sector.

It may also have been part of a peace offering. President Donald Trump has been pretty clear on China’s trade policies with the United States, frequently referring to them as unfair. The U.S. imposes a svelte 2.5 percent fee on imported vehicles — unless we’re talking about trucks. “Does that sound like free or fair trade?” Trump tweeted last month. “No, it sounds like STUPID TRADE — going on for years!”

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As China Prepares to Let Foreign Automakers Go It Alone, a Tesla Firm Shows Up in Shanghai

China’s recently announced plan to scrap its 50 percent foreign ownership rule for auto assembly plants could be just the doorway into the market Tesla CEO Elon Musk was looking for. It appears he’s already capitalized on it.

The electric automaker registered an electric car firm in Shanghai on May 10th, Reuters reports, in the hopes of building vehicles where they’re sold, rather than shipping them across the Pacific at great cost.

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Chinese Startup NIO Wants to Sell Global Crossover With Adorable A.I. Over the Phone

Nio, the Chinese electric vehicle startup that uses swappable batteries and implements a full-time digital assistant, wants to launch a global model that would make its way to the United States by 2020. To do it, it needs an alternative to the traditional dealer network most brands rely upon. Fortunately for Nio, it already has an app that allows for direct sales in China.

However, that doesn’t mean Americans would be comfortable with purchasing a car over the phone. Nor does it guarantee the United States would eagerly adopt the kind of vehicles Nio is building. For the most part, the North American market isn’t hugely enamored with electric vehicles, and the portions that are interested seem fiercely loyal to a specific Californian brand named after a Serbian-American inventor.

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Attempting to Understand the Chinese Luxury Aesthetic

Thanks to an interested and better-financed populace, luxury purchases have been on the rise in China for the past decade. Chinese consumers currently drop around $7.6 billion per year on premium goods, accounting for almost a third of the global luxury market. This has resulted in a massive influx of high-end items and brands that want to capture the public’s attention and, more importantly, cash.

This includes automotive brands — all of which are desperate to expand into the Chinese market. But finding the correct approach is tricky. Plenty of fashionable brands attempted to incorporate authentic Chinese elements into their designs, but failed to do so in an elegant or convincing way. There’s a bit of a balancing act required. Market research shows younger consumers like clean designs and a little bit of bling, but don’t want these established brands catering too much to Chinese tastes. Older consumers, however, are willing to enjoy a little bit more ostentatiousness and adherence to tradition.

That’s one reason why you see so many new cars showing up at auto shows painted red. In China, red represents good fortune and crops up on significant items on important dates all the time. Wedding dresses are traditionally red, as are envelopes containing monetary gifts to commemorate the birth of a child or the new year.

However, we have to wonder if some brands aren’t going a little overboard. Mercedes-Maybach, which just released a hideous concept SUV intended to whet Chinese appetites, has followed up that eyebrow-raising effort with “the pinnacle of luxury living.”

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Mercedes-Benz Reveals 2019 A-Class L Sedan

Mercedes-Benz unveiled the A-Class L sedan at the at the Beijing Auto Show this week, giving us the first real look at the body style that will eventually make it to North America. Of course, despite the U.S. and Canada having a population that’s three inches taller, on average, Mercedes will probably keep the long wheelbase version in the East. But that has to do more with the Chinese appreciation for imported luxury than an indispensable need for legroom.

It’s a luxury that’s sometimes difficult to understand.

Mercedes-Maybach recently showcased a three-box SUV concept we couldn’t quite wrap our heads around, and is now launching into a new aesthetic intended to appeal to Chinese customers that we’re also having difficulty coming to terms with. However, let’s save that visual train wreck for another post, and figure out how much the Chinese A-Class L sedan has in common with the model destined for North America.

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Mr. Worldwide: Mustang Takes Off in China

The Ford Mustang might have been born in America, but it’s now doing burnouts around the world. Helped along with fresh sales in places like Germany and the U.K., global registrations topped 125,000 cars last year. Your humble author saw his first right-hand-drive Mustang last January.

One country where it’s doing particularly well? China.

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China Plans to Open Car Market By 2022

After weeks of unpleasant trade talk and posturing between Washington and Beijing, China’s lead economic planner announced the country would be easing limits on foreign ownership of automotive ventures. While an official metric was not posted, it will be less than the current 50-percent cap non-Chinese automakers have been limited to since 1994. But, for all we know, China may be seeking to scrap the mandate entirely.

We did, however, get a timeline. On Tuesday, the People’s Republic announced it would remove foreign ownership caps for companies making fully electric and plug-in hybrid vehicles this year — followed by commercial vehicle manufacturers in 2020 and the rest of the car market by 2022.

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Chasing the Dragon: Lincoln's Plan to Capture the Chinese Market

While both Buick and Cadillac have a healthy lead over Lincoln in terms of domestic deliveries, the space between them is far more pronounced in China. At home, Ford moved 111,159 examples of its premium marque in 2017 against Cadillac’s 156,440. However, China’s Caddy sales clocked in at 175,489 last year — a number Lincoln could only muse about in its wildest fantasies.

That’s because Ford exports all of its luxury vehicles to China, while GM tends to build them locally. But the Lincoln brand shows a lot of promise in Asia. Ford moved roughly 80,000 vehicles in the People’s Republic in 2017 and 54,124 of those models wore the Lincoln cross. In theory, if Ford could localize and bolster its product lineup within the country, a higher volume would be all but assured. It’s a theory the automaker intends to test, too.

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All About Imports: Chinese President Tries to Mellow Blossoming Trade War With U.S.

“Paramount Leader” and Chinese President Xi Jinping clearly hopes to defuse China’s trade situation with the United States after Donald Trump launched an aggressive tariff hike on metals last month. The People’s Republic has already filed a complaint with the World Trade Organization alleging Trump’s decision to impose additional duties of 25 percent on steel and 10 percent aluminum violate international trade rules.

It’s also requesting 60 days of consultations with the United States to resolve the dispute.

There’s also an olive branch on the table. Xi has promised to cut auto import taxes and improve intellectual property protections in a bid to bolster foreign exports and ease tensions before the U.S. and China enter into a full-blown trade war. Meanwhile, the White House is threatening to increase duties on $50 billion worth of Chinese goods in response to claims that China essentially bullies foreign companies to hand over technology in order to sell it inside the country.

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Buick! (Now That We've Got Your Attention, Let's Head to China)

What country can’t get enough of the Buick brand? Well, not the United States, clearly. But cross the Pacific and Buick is the equivalent of Nicki Minaj and free Coca-Cola and the iPhone X, all rolled into one. Much desirability among the middle-class consumer set.

While we’ve seen some new product on these shores in the past year or so (a new Enclave, Regal, and refreshed Envision are the only things that come to mind), China awaits two wholly new models. One technically isn’t production bound, at least not yet, but you’d be forgiven for assuming it’s a given: A Buick SUV concept — fully electric, and boasting a pretty sexy liftgate — that might have a future on both sides of the Pacific.

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  • Ronin It's one thing to stay tried and true to loyal past customers; you'll ensure a stream of revenue from your installed base- maybe every several years or so.It's another to attract net-new customers, who are dazzled by so many other attractive offerings that have more cargo capacity than that high-floored 4-Runner bed, and are not so scrunched in scrunchy front seats.Like with the FJ Cruiser: don't bother to update it, thereby saving money while explaining customers like it that way, all the way into oblivion. Not recognizing some customers like to actually have right rear visibility in their SUVs.
  • MaintenanceCosts It's not a Benz or a Jag / it's a 5-0 with a rag /And I don't wanna brag / but I could never be stag
  • 3-On-The-Tree Son has a 2016 Mustang GT 5.0 and I have a 2009 C6 Corvette LS3 6spd. And on paper they are pretty close.
  • 3-On-The-Tree Same as the Land Cruiser, emissions. I have a 1985 FJ60 Land Cruiser and it’s a beast off-roading.
  • CanadaCraig I would like for this anniversary special to be a bare-bones Plain-Jane model offered in Dynasty Green and Vintage Burgundy.