Posted on 01/13/2024 11:49:30 PM PST by dennisw
BYDDY ▼-0.54% TESLA, INC. TSLA ▼-3.67%
Now, investigators from the European Commission will visit Chinese EV makers as part of a probe into whether they have an unfair advantage thanks to government subsidies.
In the coming weeks, the EU investigators will visit BYD, Geely, and SAIC, according to Reuters. Their visits will help determine whether the EU imposes higher tariffs to protect European carmakers.
BYD recently overtook Elon Musk’s Tesla as the global leader in sales of electric vehicles. Backed by Warren Buffett’s Berkshire Hathaway, the carmaker keeps its costs low partly by owning the entire supply chain of its EV batteries, significant since a battery accounts for roughly 40% of an electric vehicle’s price. But as the existence of the EU’s anti-subsidy investigation suggests, many worry there’s more than supply-chain efficiencies behind the low prices of Chinese EVs. The visits promise to be central to the EU probe, announced in September and set to run for 13 months.
Chinese EVs 'distorting our market' “Their price is kept artificially low by huge state subsidies. This is distorting our market,” European Commission President Ursula von der Leyen said in September of Chinese EVs. “And as we do not accept this distortion from the inside in our market, we do not accept this from the outside.”
(Excerpt) Read more at msn.com ...
My local ChiCom buffet is good value for my money. Should these be banned too?
I just rode in a BYD car/taxi in Tromso Norway this past week. Surprisingly nice vehicle. They will kill US automakers if they come on shore in the US.
I just rode in a BYD car/taxi in Tromso Norway this past week. Surprisingly nice vehicle. They will kill US automakers if they come on shore in the US.
What in the world are you doing in Tromso, Norway in mid-January?
It’s getting cold up there.
I hope that the pay is good, if it isn’t a cruise.
You’re not going to beat government subsidies. The reason why America doesn’t have the industrial base it should is because China government subsidized industries until they captured everything.
Do you think slitting America’s industrial throat over EV’s is wise to save a few bucks?
I like Scandinavia in winter! Been touring around past couple weeks. Reykjavík for a week seeing Northern Lights, hitting the bars. Then Tromso for a week, photographing moose, seeing the German Battleship Tirpitz, drinking a lot of Mack Bauer dark beer, etc.
Then A week in Oslo, boating.
Sitting on a plane looking for a gate in CDG as I write this.
It is Mack Bayer beer. I got autocorrected.
Our economy has been a slave to China since NAFTA.
China invests wisely by putting money in the pockets of US politicians who can benefit them the most, including our current White House _resident.
China cheating? Nah, can’t be. Never happen. LOL
Battery cars are a joke...and not truly “green” friendly.
Just more propaganda from our masters.
Walmart comes to the auto industry:
“the carmaker keeps its costs low partly by owning the entire supply chain of its...”
>> They will kill US automakers if they come on shore in the US.
IF it kills the EV “industry” in the US (and if the entire world EV industry goes tits up), HOORAY! May it be so.
For Germany this is a major problem. The German car MFGs are exporters of cars to earn the country money. That money yield’s unions, high wages, good living for all. Now the Germans have mandated the change to EVs. EVs required 30% fewer workers since no ICE. That means 250,000 less working unionized, high paying jobs in Germany! Now Germans have allowed the CCP cars into Germany. The CCP cars are built by very low cost labor. So now the German’s have killed their car business model .
An Allianz Trade report last year said that China’s EV makers pose a significant threat to Europe’s carmakers, particularly the “automotive-dependent economies of Germany, Slovakia and Czech Republic.” The report called for higher tariffs on Chinese EVs, estimating they could cost Europe’s carmakers 7 billion euros a year in lost profits by 2030.
In the EU, Chinese-made EVs typically sell for 20% less than those made in the bloc, and their share of the EV market, which has grown to 8%, could reach 15% by 2025, according to Reuters.
“No one can match BYD on price. Period,” Michael Dunne, CEO of Asia-focused car consultancy Dunne Insights, told the Financial Times earlier this month. “Boardrooms in America, Europe, Korea, and Japan are in a state of shock.”
Tesla CEO Elon Musk has gone from laughing about the quality of BYD cars in 2011 to suggesting recently that Chinese companies will emerge as dominant players in the global automotive industry.
In the EU, Chinese EV makers face 10% tariffs, versus 27.5% in the U.S. That’s encouraged them to target Europe as their home market gets increasingly crowded, although they’re also growing in Southeast Asia, Mexico, Australia, and elsewhere. Indeed, China has recently overtaken Japan as the world’s largest car exporter.
This month, BYD’s first chartered cargo ship—dubbed the “BYD Explorer No. 1”—embarked on its maiden voyage. Capable of carrying 7,000 cars, its destination is, predictably, Europe.
This story was originally featured on Fortune.com
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