Despite privacy concerns, a huge majority of young adults would buy a car from a Chinese auto company. Biden wants to stop them.
Would You Buy a China-Made Car?
The Wall Street Journal reports 2024 Polestar 2: Built to Compete With Tesla
Our guest this week is the facelifted Polestar 2, a chic if somewhat cramped premium compact crossover built in China and brought to you by Volvo Cars in Gothenburg, Sweden. In 2010, the China-based conglomerate Geely bought Volvo Cars and now owns a 24% stake in the Polestar brand.
Last week AutoPacific market research released survey results gauging Americans’ openness to Chinese imported vehicles. Of the 800 people surveyed, 35% said they would be open to buying a car from a China-based brand. Among the under-40, that number hits 76%, despite widespread concerns about personal privacy.
It’s the age-based survey aspect that caught my eye, not the performance of the P2 that will cost close to $50,000.
BYD to Slash EV Prices Even More
Electrek reports BYD to Slash EV Prices Even More with New Platform as it Looks to Crush ICE Car Sales.
BYD is leading an offensive against ICE vehicles. A new report claims BYD’s new EV platform will slash costs even further as the automaker kicks off a “liberation battle” against gas-powered cars.
Best known for its low-cost EVs, such as the Dolphin, Atto 3, and sleek Seal sedan, BYD is taking its game up a notch in 2024.
BYD launched a price war on ICE vehicles last month with the new Qin Plus EV and PHEV models. Starting at $15,200 (109,800 yuan), the new EV officially opened a “new era of electricity is cheaper than oil.”
The DM-i (PHEV) version is even cheaper, starting at around $11,000 (79,800 yuan). It includes up to 74 mi (120 km) NEDC all-electric range.
The all-electric Qin Plus is offered with 48 kWh or 57.6 kWh battery packs for up to 261 mi (420 km) or 316 mi (510 km) CLTC range, respectively.
Last year, BYD introduced a DM-i model priced below the 100,000 yuan ($13,900) mark for the first time. The automaker said it was “directly destroying the moat of joint venture vehicles.” In other words, legacy automakers that are still selling gas-powered cars.
Its next-gen DM-i system will enable PHEVs to drive over 1,200 miles (2,000 km) with a fuel tank and full charge. This will make it hard for traditional gas cars to compete.
Although BYD isn’t planning to launch passenger EVs in the US, it is taking market share in key global markets, including Europe, Japan, South America, and Thailand.
Electrek Reader Comment
Personally I don’t care if all legacy US auto companies go out of business. BYD can make cheap $10,000 quality EV’s and US consumers should be able to buy them. Legacy automakers have been ripping us off for years by selling polluting gas guzzlers that break down far too often and cost us thousands of dollars to repair. The cheaper Chinese EV’s have less moving parts and are much cheaper to buy and maintain. BYD should be allowed to import their EV’s into the US and build an EV factory in the US.
Deflationary Push From China
On April 22, I cautioned A Big Deflationary Push From China But Will Biden or Trump Allow That?
China keeps returning to a well that has run dry, using exports as a means for growth. China is about to hit a brick wall, with global consequences.
Everyone thinks they can win a trade war. The only way to win is not play the game.
Neither China, nor the US, nor Germany or Japan has figured this out. And everyone wants to be a big exporter. It’s mathematically impossible.
Biden Hikes Tariffs 100 Percent
On May 10, I noted Biden Wants EVs so Badly That He Will Quadruple Tariffs on Them
Astute readers will immediately notice the title of this post makes no sense. It’s not supposed to. But it is exactly what President Biden is doing.
Conflicting Goals
We don’t want EVs unless people are willing to pay 100% more for them. And this is despite the claim that the world as we know it will end in 12 years if we don’t act on them.
The EU Taxes Vehicles from China that its Own Companies Make
Yesterday, I commented The EU Taxes Vehicles from China that its Own Companies Make
As with the EU, Biden insists you buy an EV and he wants you to pay the most possible for it (no cheap BYD vehicles).
On top of it, Biden has a Green mandate with no infrastructure in place, no way to produce the needed batteries with US materials, and no way to get the minerals given China has a 90 percent monopoly on nearly all of the processing and most of the mining.
Trump wants to stop China as well.
Look towards Mexico for China’s hoped for work around. Please note BYD Unveils the “Shark” a Plug-in Hybrid Pickup Truck Built in Mexico
The Chinese automaker BYD (Build Your Dreams) announces a 700-mile range PHEV that will be built in Mexico, this year.
China Shock II Is Coming, the EU Will Be Hit Hard, Then the US
On May 17, I commented China Shock II Is Coming, the EU Will Be Hit Hard, Then the US
Germany is feeling the pinch of China shock. But the US is on deck too. A global trade war looms.
We are right on schedule for China Shock. And it will happen no matter who wins the election.
Meanwhile, If you are interested in an inexpensive EV, both Trump and Biden want to stop you from having one.
Short-term, a recession will help the Fed. Long-term, inflation pressures are still huge.
CATL’s Shenxing Plus battery is also going to help take down legacy auto & ICE.
The new Tesla Model Y out next year is supposed to have this battery.
I am so rich from stocks and cryptos and home prices that I don’t care what anything costs. I just buy whatever I want whenever. Who looks at prices anymore.
Just doing my bit for inflation to help my Government inflate away its debt.
how has capitalism not produced an affordable car for the masses? this is insane… open source can make an OS that powers the internet(linux) over for profit MS… What is going on in this country? Cars should not be unaffordable.
Unions (Wages), working through the connected (Politicians), you know, for the little Guy…
“Everyone thinks they can win a trade war. The only way to win is not play the game.
Neither China, nor the US, nor Germany or Japan has figured this out.”
But each government has figured out it’s agenda and propagandizes it to their people.
The best laid schemes o’ Mice an’ Men
Gang aft agley,
An’ lea’e us nought but grief an’ pain,
For promis’d joy!
As long as it isn’t an EeeeeeeVeeeeee… No problem. My current ICE car is from Asia (Japan) and I bought it new in 2002 and it’s running without any major need for mechanical interventions.
Isn’t the reality of it all, simply the fact that the West way over pays its workers for what they do for the money? We now pay, on average, per minimum wage, $42,000.00 (42K) per 16 year old to hand a bag with a burger and fries in it, out an electronic window, process a plastic card, and watch the window close. Like that’s sustainable! These jobs are one of the biggest forms of employment for our kids & Elderly, and this makes sense to everyone? Union wages are far worse, to push buttons while machines do the work. An EV labor cost can be conducted by a high school kid that paid just a little attention in school.
America and the West as a whole, is literally shoving the populous into the arms of China etc. for cheap, available, low cost products that they can afford and desire. What did the West think was going to happen?
Hey Stu… and what about those that make Billions in a millisecond or a nanosecond (HFT) without even doing any work at all?!
That is sustainable to you?
Modern moron slaves do what the SRF & Billionaires desire, not the other way around.
Hey Stu… and what about those that make Billions in a millisecond?
Can you Name 5? How about just 1?
If it were true, which it’s not even remotely true, that would be massively unsustainable…
P.S. Do you actually know how many Billionaires there are in America?
I posted this one with links but well.. “Awaiting for approval”!!!
Of course I can… But the fun part is that you just don’t care about that!
(1) Virtu Financial
(2) Citadel Securities
(3) Two Sigma Securities
(4) Tower Research Capital
(5) Jump Trading
(6) DRW
(7) Hudson River Trading
(8) Quantlab Financial
(9) XTX Markets
(10) GTS
(11) Tradebot Systems
(12) Flow Traders
(13) IMC Financial
(14) Optiver
(15) XR Trading
There are plenty MORE. But what we really like is to trash modern moron slaves earning $42,000/year.
That’s the SPIRIT!
There are far fewer than 1,000 Billionaires in America. Maybe your list, is the companies where some of these very few Billionaires work perhaps, but I seriously doubt it, and it would be only 15, so not worth my time to see if that’s your case.
I am not trashing anyone, abut you most certainly are! Calling them Morons and Slaves!!! These are very hard working Americans (well most) and deserve to be paid for the hard work that they do. I am just talking about our Minimum Wage earners, where many are simply not worth the money they are being paid for the work that they are doing. It’s an unsustainable work model in time, as EV’s clearly point out, as simply 1 example of many, many more.
This is all called “Logic”
Turkey has hiked tariffs on chinese cars. EU and USA aren’t lonely in this trade war. Brasil is in the same path also.
At lunch, Peter shared an interesting conversation he had with a former senior Fed official. The former Fed insider said the unemployment rate is the key data point to watch. According to this insider, the Fed is very used to and comfortable with unemployment in the 5.5% to 6% range. Considering that the current unemployment rate is 4.00% (up from 3.90% in April and 3.70% a year ago), we’ll need to see a big increase, perhaps above 6%, before the Fed takes action. The insider sees no interest rate cuts this year. So, expect the Fed Funds rate to remain unchanged unless we have a recession, which would lead to a large increase in unemployment.
…
What would be the first signs of a recession?
Talk to people. I know/hear of quite a few that have lost jobs. I also see the extreme damage inflation has and continues to cause.
I have long thought, that we have been in a recession for quite some time now. It’s just been literally papered over, but it’s here for sure, from what see and hear out there.
This current Administration uses the MSM to Parrot their talking points all day, and every day. One message is unemployment is low, and the economy is humming along. Yeah OK…
That would explain the CRE death spiral, EV death spiral, Housing Crash, Minimum wage hikes, and the tens of thousands of homeless, and unemployed living on the streets of America. Yeah OK…
Low cost is what buyers want even if they are disposable cars. It’s a stupid mindset to have but that’s today’s market. Marketing green climate guilt from China. Expect dealers to double the retail price.
For what it is worth, China has not been bringing Chinese prices to export markets.
$12k cars in China become $25k cars in Europe. There are probably minor technical modifications, for safety and PHEV emissions.
Most of the difference is that export markets aren’t as competitive as China, so Chinese companies price their vehicles about 10% less than the locals and take home big profits.
It’s easy to check. Look at the Tesla price in any market except the US. The comparable BYD will be about 10% less.
Chinese mfg will cannibalize each other in Europe and the US to bring strong currencies back home and to keep Chinese EV and ICE workers employed back home ==> in the next decade car prices are likely to deflate, finally becoming affordable, while real wages are rising. Their competition is in Mexico. There is too much industrial capacity all over the world.
Cars in China don’t need to pass stringent crash tests and other safety modifications the west cars require. And then there’s no lemon laws. Quality tight down compared to export models.
But. at the same time the bigger China companies are working on it.
Like it or not any EV will be a disposable vehicle. Look how much Hertz is selling off their Tesla fleet and the prices
IMHO Insurance and disposal reasons will heavily dampen any planned shift to electric transportation.
I look forward to the arrival of our new Chinese masters. They will be much better than the last bunch.
I would prepare for the arrival of the Russian government first.
The old Soviet style government is already here
Start with a 100% tariff before election, thereafter compromise on 35%/50% tariff, so consumers, the US gov and China will be happy. The new innovation co will sell Gen Z, make them happy, after cannibalizing Ford and GM.
Most “Under 40’s” will wind up with an E-bike, if they’re lucky.
I predict the type of car people want will be the least of their problems by the end of the year.
I totally agree!
I support free trade, however, something seems grossly unfair to require US auto makers to comply with costly production and worker regulations while allowing imports from countries that have far fewer regulations.
American carmakers, including Japanese transplants that have American management, have abandoned cheap affordable cars and trucks. Allowing cheaper Chinese imports would do wonders to the Inflation Reduction Act.
US Automakers that made market mistakes historically go bankrupt. Now they get bailed out with government loans. I agree the direction of manufacures making fewer only more expensives models is an error they need price competition.
“Inflation reduction act” = Inflation.
BYD having issues
“Despite privacy concerns, a huge majority of young adults would buy a car from a Chinese auto company. Biden AND TRUMP wants to stop them.”
I fixed it for you Mish since we’re just 5 months away from the election we really should start talking about what, if anything, will change between the two future clowns for president.
I assume the “Biden wants to stop them” was added to demonstrate what a dunce he is but we may as well throw in the other dunce too. At least this way people will see there really is no difference between the clowns.
Of course anyone is free to correct me; if anyone thinks Trump will embrace Chinese autos please chime in, especially the Trump supporters.
Seemed like Mish was pretty clear that both of them are the same on this.
Yeah but I am waiting for the Trumpers to chime in.
OK. They are both correct and we should stop the imports. I’m for returning to tariffs on all imports. The manufacturing of these products adds nothing to the US and they access our marketplace without any cost. They aren’t subjected to US regulations, don’t comply with environmental rules and some even utilize slave labor.
Without a manufacturing base for products and medicines, you don’t really have a sovereign country.
Made in China can’t be as bad as union made in the Detroit ghetto.
I am very skeptical of Chinese quality. If something is to cheap ususally there is a catch. Detroit quality has improved a lot. We will see.
I agree HMK. I fix small engines as a hobby. The after market Chinese made parts are absolute GARBAGE (I cant stress that enough). Chinese made lawn equipment, such as the Powersmart brand, are dirt cheap, buuuuuut wholly shit are they are awful when it comes to quality and design. I’ve run into this same issue with after market car/trucks parts. “Made in China” often comes with a great price point, but the quality is generally not so great.
No wonder you buy the cheapest products. Or did you pick up from road side?
My 1986 Japanese sports car is the best car I’ve ever owned. Good strong engine. 7200 red line. Drives great. All problems were caused by vandals and mechanics. I have yet to hear that from the owner of an American car.
Made by the same robots: ABB or Kuka mostly. And they don’t hire from the DEI Zoo, which is Detroit’s pride.
An entire generation of kids was terrorized and lied to during the so called pandemic with distancing, lockdowns and school closures. They are lied to about end times with climate crisis mania and the end of human reproduction as a desirable trait. They are also inundated with constant marketing driving abject consumption which is now becoming more and more difficult due to the USG driving rampant inflation. So sure, if a Chinese car is cheaper, and one can afford it, why not. Kids will not be able to afford Teslas.
And the Chinese government is so much more beneficent in the treatment of their populations, especially the Uyghur population that gets to be slave labor to mine & produce lithium for cheap batteries. We don’t care how many people and children get sick and die or how contaminated the planet becomes as long as we can virtue signal by purchasing and driving a cheap car.
And don’t forget the Chinese Government sanctioned systemic murder organ harvesting program. If you have the cash they can supply the organ, fast.
You forgot about the Tibetans. As did most everyone else. As for the saving the planet … A donkey for you.
“Slave labour” – Just propaganda!
Slave labour = cheap labour
That’s what West is looking for to manufacture their products for hundreds or years.
The whole world is brain washed.
West will never pay the living wages to developing countries.
I love market interference orchestrated by our masters !!
76 Percent of Those Under Age 40 Would Consider Communism.
I wish this was incorrect
Even worse: Seemingly many more than that would consider near infinitely worse systems of government built around financialization.
Despite not only communism in all its forms being vastly superior to any possible such “system”, but even Hutu style dismemberism being so as well.