Tag: China

By on April 9, 2021

The China Association of Automobile Manufacturers (CAAM) is reporting its home market grew 74.9 percent in March, resulting in nearly 2.53 million new-vehicle deliveries. While we’re often skeptical of the organization’s rosy predictions and tallies, it’s claiming the recent sales surge is the direct result of how bad things had been in the previous year. China instituted some of the most aggressive lockdown protocols of any nation in the initial stages of the pandemic and had already been struggling with a declining vehicle market in 2019.

CAAM is making no illusions about the gains being based on anything other than how horrible March of 2020 was and doesn’t want to overpromise moving ahead. It’s a warning that the semiconductor shortage will likely worsen as the year continues, dampening Q2 projections. But the organization has not yet revised its forecast for next year’s overall sales. Last December, CAMM predicted roughly 26.3 million vehicles would be delivered by the end of 2021 and appears to be running with that target.

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By on April 5, 2021

American automakers can usually count on selling just below 3 million vehicle sales in China every year. While that figure includes the caveat that the Chinese Communist Party requires foreign manufacturers to partner up with established local companies, it remains substantially larger than the number of cars Chinese brands manage to move in the United States per annum — which is effectively zero.

From BYD to Zoyte, just about every large Chinese manufacturer has issued a deluge of promises about breaking into our market over the last decade — including most of the names we’ll be mentioning below. Consider this sort of the “Where Are They Now?” of evergreen automotive content about regional disparities. Because very little has moved in regard to China’s involvement with the North American auto market and the current geopolitical climate doesn’t make us think that’s likely to change anytime soon.

But it hasn’t been for a lack of trying.  (Read More…)

By on April 1, 2021

Xiaomi

Xiaomi, a Chinese smartphone colossus, has announced they are building their own branded electric vehicles (EVs), just like Apple, Huawei, Sony, and Foxconn.

If you’re prepared to lose money, starting a car company is easy. Just ask Tesla. Xiaomi has plenty, enough to sink $10 billion into the venture over the next 10 years.

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By on April 1, 2021

One of Volkswagen’s joint ventures in China has reportedly offered to purchase regulatory credits from Tesla in order to adhere to the regional environmental ascendancy. While VW may be doing everything in its power to swap over to an electric-vehicle manufacturer, it’s apparently falling short of government dictums.

FAW-Volkswagen — which shipped a little over 2 million automobiles in Asia last year — happened to be one of the biggest polluters of 2020 according to China’s Ministry of Industry and Information Technology. As it turns out, selling internal combustion vehicles consumers actually want to purchase in large quantities has some kind of environmental cost. Fortunately, it’s one regulators think can be solved by buying green credits from rivals who do all of their polluting during the initial assembly process and launder any future emissions through the national energy grid.  (Read More…)

By on March 23, 2021

Geely Auto Group has announced the formation of an electric technology firm and automotive brand called Zeekr Company Limited. With the Chinese group already holding numerous mobility-focused brands with a penchant for electrification, it’s a bit curious to see it launching another one. But Geely has indicated that Zeekr will be aimed at the premium EV market using a similar business model as Lynk & Co.

That likely means selling vehicles as a service, rather than a product owned by the driver — something we’ve been incredibly wary of since the industry starting mulling over things like subscription services and online sales. Owned jointly owned by Geely Automobile Holdings and Zhejiang Geely Holding Group, the plan is to start launching products in China before the end of 2021. It’s quite the swift turnaround, leading us to believe there will be some platform sharing with other Geely-owned automotive brands. New product is said to be introduced every twelve months over the next five years.  (Read More…)

By on March 19, 2021

The Chinese military has decided to ban all Tesla vehicles from housing complexes and bases after citing them as a potential security risk. Since the cars use an array of ultrasonic sensors and cameras to create a panoramic view used for advanced driving features, China is concerned the American brand could use the cars to covertly map out sensitive areas.  (Read More…)

By on February 18, 2021

Automakers around the globe have been issuing warnings for weeks that the semiconductor shortage will eventually result in fewer cars and leaner profitability reports. But the absent chips are affecting just about every industry producing modern connected devices, creating fears that electronic prices could skyrocket as availability dwindles. Lockdowns effectively crippled semiconductor supply lines right as demand peaked and everyone is starting to get a little worried about how it’s going to impact production in other industries.

The White House is reportedly taking steps to mitigate the issue by tasking Brian Deese (Director of the National Economic Council) and Jake Sullivan (National Security Adviser) with coming up with a solution. It’s also asking embassies to assist chip suppliers around the world however possible and hopefully suss out a way to stop the global shortage. Meanwhile, Deese and Sullivan will be focusing the brunt of their efforts on Taiwan.

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By on February 9, 2021

Tesla CEO Elon Musk came under fire this week after Bloomberg wrote a piece accusing him of playing nice with totalitarian China following years of showing totalitarian California a complete lack of respect. With the semiconductor shortage leaving the industry in a holding pattern, tabloid journalism seems to be filling in the gaps to the dismay of yours truly. However, Musk’s relationship with both countries remains relevant since they represent the two largest automotive markets on the planet and will dictate the trajectory of the business.

He’s being accused of being extremely apologetic to Chinese regulators, despite having become infamous for acting in the exact opposite manner in the United States. As you might recall, American Musk is all about flagrantly ignoring the rules and telling the government regulators to take their concerns into the bathroom where they’ll have the privacy necessary to stick them where the sun doesn’t shine. When it comes to high-IQ billionaires, our Elon is the bad boy’s bad boy. But Chinese Musk is said to be deferential and happy to comply with the request of oversight groups before they become official mandates.

He sounds like a total traitor! At least, that’s how China’s state-run media framed it before Western outlets took the reporting and made Elon seem even worse on Tuesday. The story has since been spreading online, encouraging this website to take another look to see if Mr. Musk is actually the double-crossing villain that’s being claimed.  (Read More…)

By on February 4, 2021

Ford/Zotye Agreement

Ford Motor Co. has decided against its plan to launch an electric vehicle joint venture with China’s Zotye Automobile. The American manufacturer confirmed the decision on Thursday, stating that the Chinese Communist Party (CCP) had made sweeping changes to its policies since the deal was initially agreed to in 2017.

Few specifics were given beyond that and Ford hasn’t indicated the move might suggest a retreat from the one-party socialist republic. Ford recently confirmed its plan to build Chinese versions of the all-electric Mustang Mach-E with Chongqing Changan Automobile Co. and maintains numerous joint ventures necessary to continue doing business inside Central Asia.

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By on January 30, 2021

Ford

Ford announced that a Chinese version of the Mustang Mach-E, also known by some of us cynical scribes as the Mustang Mock-E, will be built in China by Changan Ford.

(Read More…)

By on November 13, 2020

Daimler Chairman Ola Källenius went against the grain on Thursday by admitting the company he’s been tasked with overseeing will become significantly smaller in five years. That’s normally not the kind of thing you want to telegraph to shareholders via the media but he’s convinced this is the best course of action for the business.

“The next five years we will become a smaller company,” Källenius told Reuters. “We will have a fundamental change in the industrial footprint on the powertrain side.”

The future of Daimler apparently involves a half-decade metamorphosis into a services-focused software company that just so happens to build vehicles. But the vehicles won’t be those internal-combustion jobs that you grew up around. Instead, they’ll be hyper-efficient electrics from Mercedes-Benz as it re-imagines luxury within the strict confines of environmental sustainability. As a byproduct, Daimler will need fewer employees to help manufacture automobiles. (Read More…)

By on November 6, 2020

2018 GMC Yukon Denali Ultimate Black Edition

General Motors intends to start selling its full-size SUVs in China and is currently showcasing the Chevrolet Tahoe, Chevy Suburban, Cadillac Escalade, and GMC Yukon Denali at the China International Import Expo in Shanghai. That means these vehicles will be imported rather than being manufactured in-country as part of their government-mandated partnerships with Chinese automotive firms.

Why would GM do this in a nation that’s supposed to be prioritizing hyper-efficient electric vehicles? Well, China is currently the world’s largest car market and is on track to be the only major economy on Earth that will grow during the pandemic  the yuan has already hit a 28-month high against the dollar after the U.S. presidential election started skewing in favor of Joe Biden. Meanwhile, General Motors happens to be one of the region’s largest automakers and competition is stiffing between it and the likes of Volkswagen, Geely, Honda, and Toyota.

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By on October 23, 2020

Tesla is recalling some 30,000 imported Model S and Model X vehicles in China over claimed defects in the suspension. According to China’s State Administration for Market Regulation, cars manufactured between September 2013 and January 2018 suffered from two distinct issues, with some vehicles having both.

But, almost as quickly as the story was brought to our attention, Tesla announced the accusations were baseless and the recall was being forced by the Chinese government. The group that’s being recalled accounts for most of the American-made EVs shipped to China by the brand. Since Tesla started manufacturing in Shanghai in 2020, U.S. exports have slowed to a trickle. The automaker seemed to hint that there may be political reasons behind the decision but stopped short of saying it wouldn’t comply with Chinese regulators.

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By on October 13, 2020

With global economies suffering from pandemic-related lockdowns, there’s been just one question burning in the minds of economists: ‘When will Chinese automotive sales finally rebound so that the industry can once again feel comfortable enough to keep pouring resources into Central Asia?’

Now, apparently.

China’s car market just recorded its first quarter of year-over-year sales growth in two years, with last month’s volume rising 12.8 percent (vs 2019) to 2.57 million units, according to the China Passenger Car Association (CPCA). While its always wise to keep in mind that the nation has a history of obfuscating figures that might paint it in a bad light, CPCA has been slightly more consistent in its reporting than the China Association of Automobile Manufacturers (CAAM). Both outlets also have a tenancy to showcase blind optimism for the local economy, but there appears to have been good reason for that over the last five months.

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By on September 17, 2020

Cadillac told U.S. and Chinese dealers they will each need to invest at least $200,000 on electric vehicle chargers and staff training to continue selling the brand’s products after 2022. The message was communicated to dealerships on Wednesday via video messages from Rory Harvey, the luxury brand’s vice president of sales, service and marketing. Cadillac is moving on electrification (seriously this time) and plans to launch the Lyriq EV within the next two years, with more battery-driven models to follow. Update: Cadillac PR has responded, saying that what was communicated yesterday is for U.S. dealers only.

The brand says dealers must be ready for the transition, giving us flashbacks to Project Pinnacle  the Johan de Nysschen strategy that forced stores to spend money to provide a more premium sales experience that differentiated Cadillac as special. At the time of its implementation, many dealers wondered why they should bother taking on more overhead under the assumption that they’ll make extra money over time. While luxury-specific outlets don’t have much choice in the matter, those selling GM’s other brands in conjunction with Cadillac seem to be substantially less eager to implement the changes.

(Read More…)

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