It’s hard to talk about U.S. automotive business and technology without talking about China, so today we gathered up a series of content about automakers, technology, manufacturing, sales, politics, and profits all with China sitting in the middle of the table. Enjoy (享受)!
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The United States is significantly intensifying tariffs on Chinese-made EVs, potentially quadrupling them from 25% to 100%. This action aims to curb the entry of affordable, often superior Chinese EVs, safeguarding American automakers from competitors that could undermine their market with models as inexpensive as $10,000. This protective measure aligns with ongoing policies from both the Biden and Trump administrations, which favor domestically sourced materials and broader tariffs on other green goods like solar panels to shield US industries from Chinese dominance.
Despite geopolitical tensions, Chinese EV maker Zeekr made a strong U.S. market debut, surging nearly 35% on its first trading day. This introduction, the first major U.S. listing from a China-based company since 2021, signals robust investor confidence in Chinese EV technologies. Zeekr — part of Geely which also owns Volvo and Lotus — has already delivered nearly 200K vehicles, primarily in China. It is targeting the luxury EV market and indicating its global ambitions despite increasing U.S. tariffs.
Thailand, recognized as the "Detroit of Asia," is emerging as a strategic manufacturing hub that could hedge against the risks associated with manufacturing in China. With significant government incentives and a robust automotive infrastructure, Thailand offers a compelling alternative for companies like Tesla to diversify their production bases away from geopolitical pressures. This move is part of a broader "China Plus One" strategy aimed at mitigating dependency on China by exploring manufacturing opportunities in Thailand, potentially leading to more affordable EV production.
Hyundai, Kia, Ford, and BMW showcase strong market performances in EV sales, challenging Chinese competitors. Hyundai and Kia have particularly benefited from new model introductions, like the Kia EV9 and Hyundai IONIQ series, driving record sales.
Despite financial setbacks in its EV division (losing about $100K per EV sold in Q1), Ford continues to push towards affordability with plans for a sub-$30K EV, reflecting a strategic adaptation to market demands and consumer preferences.
On the technological front, the U.S. and China have initiated diplomatic talks in Geneva to discuss AI safety and risk standards. This dialogue, led by senior officials from both nations, is crucial as both countries vie for dominance in the AI sector. The talks aim to exchange insights on managing AI risks without expecting immediate joint statements or technical cooperation, underscoring a cautious approach to collaboration amid broader competitive tensions.
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There are two ways to solve a problem: with what you have and with what you don’t have (yet). The U.S. has an amazing system of small, medium, and large local and often family-owned businesses interested in meeting U.S. consumer automotive needs. Automakers already have access to partner with these dealerships. Can anyone say they are fully realizing the potential in these relationships?