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Only these protectionist tariffs seemed to defend US automakers from external competitors. However, avoiding competition, in the long run, may be bad for US automakers.
"While BYD cars are not yet a common sight on American roads, many experts believe it’s only a matter of time, despite the high tariffs that help keep them at bay for now. Currently in the U.S., made-in-China EVs are subject to a 25% tariff, which goes atop a 2.5% tariff on imported cars."
Said the late Charlie Munger from Berkshire Hathaway of BYD CEO Wang Chuanfu: "The guy at BYD is better at actually making things than Elon is."
Only these protectionist tariffs seemed to defend US automakers from external competitors. However, avoiding competition, in the long run, may be bad for US automakers.
"While BYD cars are not yet a common sight on American roads, many experts believe it’s only a matter of time, despite the high tariffs that help keep them at bay for now. Currently in the U.S., made-in-China EVs are subject to a 25% tariff, which goes atop a 2.5% tariff on imported cars."
Said the late Charlie Munger from Berkshire Hathaway of BYD CEO Wang Chuanfu: "The guy at BYD is better at actually making things than Elon is."
Well do those "Chinese" EV"s met all our safety requirements here is the US? From what I understand, not even close! THIS is what protects the US market from Chinese junk!
Maybe we can start using Club Car as a comparision to the US EV market next!
Well do those "Chinese" EV"s met all our safety requirements here is the US? From what I understand, not even close! THIS is what protects the US market from Chinese junk!
Maybe we can start using Club Car as a comparision to the US EV market next!
Good morning - BYD is beginning to sell their vehicles in western Europe, where the safety requirements are similar to those here. I think you got some bad information.
And the US tariffs are real - imposed during the Trump administration and extended by the Biden administration. The above reporting was from Fortune, and here is the same thing in Motor Trend: "Cars made in China and sold in the U.S. already face a stiff 27.5 percent tax". If you just take 1 minute to google it, you will find that everyone says that. https://www.motortrend.com/news/us-t...ars-suvs-2024/
The Motor Trend article also has a video presenting the Mexican view on Chinese vehicles - why? Because Mexico doesn't have these tariffs, and a number of Chinese brands already sell there. They say that the Chinese automakers have raised their game a lot over the past 10 years. Canada has a 6% tariff on Chinese cars - not trivial, but not prohibitive as the US tariffs are... and Canada will be getting Chinese cars soon as well.
You might also be interested to know that Ford CEO Jim Farley has said that the top Chinese companies are their main rival (beyond Tesla) in the EV space, not GM or Toyota. Farley has also said that Ford isn't ready yet to compete with these Chinese EVs. https://fortune.com/2023/06/18/ford-...tric-vehicles/
And no, I am not pro-China, but I do think it's important to deal with the world as it really is, to face facts. I can say all day long that the Chinese vehicles are cheap junk that will never compete with Western vehicles. But no matter how much I say it, it's not true. If you remember, Korean cars at first were well below the standard of Western vehicles. But over the course of a decade or two, they raised their game a lot, and today they sell a lot of Hyundais and Kias in the US.
Last edited by OutdoorLover; 01-08-2024 at 05:23 AM..
The BYD Seagull wouldn't stand a chance here, and probably not the Dolphin either. Americans in general do not like small hatchback type cars. Now if it were a small crossover it may be successful, but would it's lose its price advantage?
Well do those "Chinese" EV"s met all our safety requirements here is the US? From what I understand, not even close! THIS is what protects the US market from Chinese junk!
Maybe we can start using Club Car as a comparision to the US EV market next!
Or does the price reflect massive subsidies to keep the prices down, much like South Korea did with steel forty years ago which almost killed the US steel industry?
Or does the price reflect massive subsidies to keep the prices down, much like South Korea did with steel forty years ago which almost killed the US steel industry?
There is definitely government support of the EV industry in China, that's had a significant impact. Of course, there's been such support in the EU and the USA as well, but I think the Chinese government may have been more aggressive/generous with this support.
The BYD Seagull wouldn't stand a chance here, and probably not the Dolphin either. Americans in general do not like small hatchback type cars. Now if it were a small crossover it may be successful, but would it's lose its price advantage?
Chinese labor isn't as cheap as it used to be, but I think there is still some advantage there. BYD also is heavily vertically integrated, like Tesla, and they have advanced manufacturing, like Tesla. So they have a number of advantages versus the traditional automakers at least.
If you watch that video in the Motor Trend article, which is very interesting*, the Motor Trend journalists acknowledge that after driving the BYD for a day, that they could imagine themselves owning tis car. Later in the video, they said that BYDs are undercutting comparable Hondas being sold in Mexico - not by a lot, but by enough that for the consumer, they begin to consider this less familiar brand as a viable choice. I was also reading that Chinese-made Teslas are being imported into Canada, and even after paying the 6% Canadian tariff, Tesla can sell them cheaper than the US-made Teslas.
*Motor Trend put some significant effort into producing this video - traveling to Mexico, driving the imported cars, interviewing Mexican officials and Chinese auto company executives there.
Last edited by OutdoorLover; 01-08-2024 at 06:30 AM..
And the US tariffs are real - imposed during the Trump administration and extended by the Biden administration. The above reporting was from Fortune, and here is the same thing in Motor Trend: "Cars made in China and sold in the U.S. already face a stiff 27.5 percent tax". If you just take 1 minute to google it, you will find that everyone says that. https://www.motortrend.com/news/us-t...ars-suvs-2024/
You forgot to add the "and extended by the Biden Administration". So even though there was wailing and gnashing of teeth when Trump imposed them the new Administration must have thought they were beneficial and served a purpose.
You forgot to add the "and extended by the Biden Administration". So even though there was wailing and gnashing of teeth when Trump imposed them the new Administration must have thought they were beneficial and served a purpose.
Yes. I mean, I have no doubt that Ford, GM and Stellantis like these restrictions, so I am not gnashing teeth. I still think that this shouldn't be done indefinitely though. Protecting American companies basically allows them to remain non-competitive - which isn't even good for them over the long haul; plus for American consumers, they don't get the benefits of such competition. So such measures should be of limited scope and duration, if you need to use them, in my opinion.
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