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Transportation China United States

The Automotive Cold War Is Officially Underway (insideevs.com) 170

Tim Levin reports via InsideEVs: Two things of note in the electric vehicle world happened today around the same time. First, the Geely Group-owned Chinese EV brand Zeekr debuted on the New York Stock Exchange today at a valuation of around $5.2 billion. Then, around 250 miles south in Washington, D.C., news emerged that the Biden Administration is set to quadruple tariffs on Chinese-made electric cars if they hit American roads. The timing may be purely coincidental. But after this week, one thing feels clearer than ever: the automotive Cold War between China and the West is fully underway, and EVs specifically are at the center of it all.

The Wall Street Journal got the scoop that the White House plans to announce higher tariffs on Chinese clean-energy imports in the coming days. Under the reported new policies, tariffs on Chinese EVs are set to quadruple, rising from the current 25% to a whopping 100%, anonymous sources told the outlet. In theory, that would substantially increase the cost of any Chinese-made EVs on our market, including, potentially, ones sold by known Western and other Asian brands. It's no secret why the U.S. is attempting to push back on Chinese EVs, to say nothing of other clean energy imports from that country like solar panels. China has spent years aggressively building up its capacity to manufacture electric cars. It's developed a stranglehold on the supply chains for lithium-ion batteries and the critical minerals they contain. It has lavished state incentives on both EV production and purchasing. In recent years, the country has emerged as a global EV powerhouse -- and, for the first time ever, an exporter on par with leaders like Japan and Germany.

Many still believe that China's cars are cheap and technologically subpar. But the truth is China has learned to build cars very, very well, as InsideEVs' own Kevin Williams discovered during a recent trip to the Beijing auto show. China's homegrown electrified vehicles range from the inexpensive -- some, like the BYD Seagull, cost less than $10,000 in their home market -- to higher-end, luxury-focused offerings like the Yangwang U8, a kind of plug-in hybrid competitor to the Mercedes G-Class that can "float" on water. From batteries to software, most are incredibly advanced. Car companies and policymakers in the U.S. (and Europe) say these cars pose a real threat to our nascent EV market, where many options still remain unaffordable and things like batteries and software are works in progress. In response, European Union officials have also launched investigations into Chinese imports that could lead to stronger tariffs.
"In effect, the tariffs may end up buying the U.S. some time, rather than being a permanent solution here," concludes Levin. "After all, as Kevin Williams pointed out after going to Beijing: all of these crackdowns aren't guaranteed to yield better cars from Ford, General Motors and the rest."

According to the WSJ, the new tariffs on Chinese goods will also apply to solar panels, batteries and critical battery minerals. They're expected to be announced as soon as next week.
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The Automotive Cold War Is Officially Underway

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  • by locater16 ( 2326718 ) on Friday May 10, 2024 @05:46PM (#64463745)
    Now that headlines are screaming at the top of their lungs that "China EVs are coming for everyone!" is there any evidence that any of these Chinese EV companies make reliable products at all? I don't give a shit about a $20k EV if it doesn't last 2 years, let alone the 20+ a Toyota would.
    • by taustin ( 171655 ) on Friday May 10, 2024 @05:55PM (#64463759) Homepage Journal

      The more likely scenario is that by the time they meet all the US safety requirements for automobiles, they won't be $20k vehicles any more, they're be two or three times that. (Without increased tariffs.)

      • by Admiral Krunch ( 6177530 ) on Friday May 10, 2024 @07:08PM (#64463895)

        The more likely scenario is that by the time they meet all the US safety requirements for automobiles, they won't be $20k vehicles any more, they're be two or three times that. (Without increased tariffs.)

        They already satisfy the just as strict European standards.

        If America could just block them with "standards" why the need for the tariffs?

        • European standards are stricter than the US, actually. Cybertruck isn't legal there. Or in China, even.

      • There is this notion that EVs are state of the art, complicated. They are not. In fact, the technology is a lot simpler than a combustion engine. China can make reliable cars here. If not, the extra tax makes little sense.
      • by thegarbz ( 1787294 ) on Saturday May 11, 2024 @05:22AM (#64464525)

        The more likely scenario is that by the time they meet all the US safety requirements for automobiles, they won't be $20k vehicles any more, they're be two or three times that. (Without increased tariffs.)

        US safety standards are not a hard requirement to meet and not very stringent. EU is a higher bar.

        More likely: the USA's fetish of large mega trucks and unwieldy big pieces of metal will mean they won't be $20k vehicles anymore. The BYD Han costs over $30k in the USA. It's a large luxury car and the selling price is not much more than the Chinese price converted + existing import tariffs.

        The companies themselves have been clear on this. They are not interested in playing a price game in the USA. Doing so requires long term investment and they won't do so in a country with an uncertain political future.

        Chinese car companies offer more cheaper models in the EU than the USA despite the fact that cars are historically cheaper in the USA, and despite the EU safety standards being higher. E.g. that news article we ran the other day about AEB being mandated in the USA from 2029? Yeah that's been a thing in the EU for a couple of years already.

      • They already meet US safety requirements, or you could not import and sell them ... Facepalm

    • by Roger W Moore ( 538166 ) on Friday May 10, 2024 @07:04PM (#64463889) Journal
      Regardless of whether or not they are coming putting tariffs on them makes this a trade war not a cold war.
      • Regardless of whether or not they are coming putting tariffs on them makes this a trade war not a cold war.

        They are only talking about it. That makes it cold war, not a trade war. It only turns into a trade war when someone actually does something.

    • is there any evidence that any of these Chinese EV companies make reliable products at all? I don't give a shit about a $20k EV if it doesn't last 2 years, let alone the 20+ a Toyota would.

      They are good at what they are. Efficient, inexpensive transport. They are reliable. They will not wear out quickly.

      They do not have the safety features you are used to in an American or European car. Those add weight, and cost.

      • They do not have the safety features you are used to in an American or European car. Those add weight, and cost.

        Except they are already sold in comparable western countries.
        They just didn't bother yet in America 1)because they knew these kind of artificial restrictions would make it less profitable 2) there was plenty of better low hanging fruit to pick first.

      • They have the same safety features ... Other wise they could not sell them:
        O in the EU
        O in the US
        O in Asia
        O or in China

        Facepalm ...

    • by timeOday ( 582209 ) on Friday May 10, 2024 @09:28PM (#64464095)
      • by shilly ( 142940 )

        Such an informative article — you really get a sense of how much better the cars are. The interior of that Galaxy G8 — not just the screen but the rest of the interior too — is amazingly premium for a 25k USD car. Western car companies and governments have truly done this to themselves. They fucked around for years getting in a tizzy over the drivetrains because a bunch of old men felt such an emotional attachment to the vroom vroom noises, and let the Chinese, who had no such attachment,

        • What I wonder is if people who dismiss China because "communism doesn't work" realize what a hotbed of competition their auto industry has become. China's auto industry looks absolutely nothing like the USSR feebly cranking out a few sad Ladas that hardly anybody there could afford.
          • by shilly ( 142940 )

            China is as communist as North Korea is democratic. Amazing how people (not you, obviously!) fall for these transparent word games, and thus ignore the obvious evidence that China is an authoritarian capitalist regime.

    • Didn't you read the fucking article? Their dude went to an auto show and they are AwsoME!!! They compete with anything on the European or American markets and their quality is ultra double plus good.

    • They are much more reliable and safe then any US brand.
    • In US obviously not.
      As you obviously are a bunsh of yahoos ...
      The electric cars in my road are mostly Chinese, but two Teslas and a bunsh of Japanese running around, an a Porsche.

  • by bjwest ( 14070 ) on Friday May 10, 2024 @05:50PM (#64463753)
    It's too bad the U.S. doesn't manufacture anything the common working class can afford. One can only imagine where we'd be today if Japan were hit with this type of tariff when they introduced the Toyota line to the U.S.
  • by Baron_Yam ( 643147 ) on Friday May 10, 2024 @06:00PM (#64463781)

    The US auto industry has always lobbied politicians to prevent having to compete. They have historically seen it as the more profitable option, and that's why Ford, Chrysler, and GM aren't essentially a cartel any longer.

    On the other hand, EVs these days usually phone home and can be controlled to disturbing levels by the manufacturer. Handing over to an adversary lumps of potentially explosive metal that are, by design, to move freely around your country at high velocity seems like a REALLY dumb move.

    I'd say anything without a self-drive feature that meets American safety standards should be allowed on American soil, with perhaps a small tariff to balance out the extra expenses American manufacturers have to shoulder for meeting better environmental and labour regulations during production. Going beyond that is just admitting America can't compete any longer. Or rather, it's equivalent to anyone who can think. There's no actual admission happening.

    • This protects Tesla, and to a smaller extent, Rivian and Polestar. It also protects a whopping amount of dollars going overseas.

      For my tastes, self-driving is useless, and won't be viable for a long time. Cut out the R&D for it, reduce the middle 8K display for a regular old speedometer, and the costs could be cut dramatically, even in domestic cars.

      EVs are a mindset, but are so over-featured that their expense has become ludicrous. All this while the climate is melting. IMHO, Biden's protectionist play

      • by kackle ( 910159 )
        I agree, but isn't the screen now mandated by the non-engineers (Congress)?
        • A backup camera is mandatory, GP was talking about video gauge clusters. As a proud self-proclaimed nerd who has had a variety of styles of dash but not a video one, I agree. I've had LED, LCD, combos, individual gauges, typical needle gauges, combos of types of gauges, and a really beautiful frosted glass long travel needle on a '60 Dodge. And to my mind, the very best of these were and are individual gauge types. They look both sporty and function, they are easy to maintain, they are easy to reconfigure i

          • by Reeses ( 5069 )

            When a long-lived LED display technology becomes cheap and so ubiquitous that very reliably hardware is readily available

            I think you might want to look around. That day is already here. We're awash in cheap screen technology. It's so cheap, we're looking for new places to put them. And they've even gone so far down in price, they're significantly cheaper than those mechanical analog gauges you're mythologizing.

            • I think you might want to look around. That day is already here. We're awash in cheap screen technology.

              Cheap shit screens, yes, burn-in, short lives, etc. Or, poor contrast and daylight viewability.

            • by kackle ( 910159 )
              I'm guessing he means that I can't just go to Walmart and buy a drop-in replacement for the in-dash screen for a 2023 Lexus. "Cheap" displays, yes. Ubiquitously compatible, no, and probably not ever.
          • The rear view mirror on our 2017 Chevrolet Bolt doubles as a screen for the backup camera.

            For the speedometer, there is a separate analog display.

            One isn't required to use the central screen to drive the car.

            Similar on my 2015 Volt except it's lower tech.

      • by shilly ( 142940 )

        I really think it’s worth your time to read the article about the cars at the Beijing show. Chinese cars are often vastly *better* featured than US cars while also being much better value. US cars already feel wildly cheap inside by comparison. Making them feel even cheaper won’t make them more competitive against Chinese cars. The problem is more fundamental: US car companies have not invested in the economies of scale needed for their drivetrains to be competitive, and have focused on a single

        • My job is not to make US cars more competitive. The fundamental problem with US automotive manufacturing is complex. We led at one time because we were leading the world in innovation.
          '
          Except for Ford, the US didn't make cars for export markets. Quality and materials sourcing went to hell. When the oil companies took control, they couldn't adapt to the changing total cost of ownership.

          They had little actual honor, preferring to stand behind the shield of branding. They didn't adapt to robotic manufacturing.

      • by AmiMoJo ( 196126 )

        All the equipment for autopilot is needed for the safety systems anyway, like lane departure warnings and front collision avoidance. So you might as well have auto steering too.

        The digital speedo probably doesn't cost any more than an analogue one. Lower r&d costs too, adding a new "light" is just a software upgrade instead of changing the hardware.

    • Look at the stupid 25 year rule the US has for importing foreign vehicles. These cars are made to more stringent EU or Japanese safety standards but they haven't gone through the official US testing.

      • The US has extremely stringent crash test requirements. Right now US, Euro, and Japanese standards are very close and are superior only in different areas, but for most of automotive history the US had the strictest standards.

        We are a bit behind in emissions laws, except California which is being extra crappy about them in certain regards. You can't argue that there haven't been great accomplishments, though.

        • by shilly ( 142940 )

          US standards are very stringent for driver (and to some extent passenger) safety. They are incredibly lax when it comes to the safety of other road users. Pickup trucks and SUVs are routinely sold in the US with horrendous blind spots, terrible front visibility, bumpers and bull bars that spell death for any cyclist, pedestrian or driver of a small car, etc. Many of these cars would not be permitted in Europe. Even things like indicators (blinkers) being allowed to be red rather than orange in the US is a c

        • "but for most of automotive history the US had the strictest standards."

          Is that a kind of joke?
          Completely delusional?
          Or are you on drugs?

          Probably just a proud MAGA american?

          • When we're talking about crash test standards, the USA has typically been out in front. For a recent example, we were the first to implement a partial offset frontal crash test requirement.

            Emissions are mixed; California has often been out in front, most of the country has usually been behind.

  • by DMJC ( 682799 ) on Friday May 10, 2024 @06:09PM (#64463797)
    We killed our domestic car manufacturers so we're free to import and get cheap Chinese electric EVs.
  • Bejing can always use Tesla as a pawn and threaten to raise their "tariff," but then again, Tesla is the upper end of EVs in China and your average worker will never buy one.

    So where is Tesla going? I don't see customers lining up to "RAT" (Rent a Tesla) even though Elon thinks that.

    Where is a cheap EV that a 20 something will be able to buy, like when I was young & making low wages? I could still afford a full size Chevy Blazer. You can't do that today.

  • by williamyf ( 227051 ) on Friday May 10, 2024 @06:29PM (#64463825)

    The financia times is reporting that Many automakers, said: "Tapping the resurgent demand for hybrids was a priority, executives from General Motors, Nissan, Hyundai, Volkswagen and Ford told the Financial Times’ Future of the Car Summit this week."

    Non-Paywalled lnk:
    https://arstechnica.com/cars/2... [arstechnica.com]

    I, personally, think that Cheap and cheerfull PiH-S-EVs using Natural Gas (as in methane and ethane) and not Liquid Natural Gas (buthane and Propane) is the future.

    Why:
    The ICE can be set up at a fixed RPM to contaminate the minimum and have the maximum efficency.
    The ICE can be Pretty small and light (one or 2cyl)
    The ICE will contaminate less than a gasoline engine (not in therms of CO2, but rather in terms of, for example, sulfur and soot).
    No need for a transmission, so less weight and cost/complexity
    Easier and faster to refuel than a BEV (goodbye range anxiety)
    Smaller batteries (cheaper and lighter)

    And many others...

    JM2C, YOMV

    • As I understand it, diesel locomotives use the diesel engine to provide regenerative power to massive batteries that actually drive the train. Could we use small, two-cylinder engines to do something similar with cars? Ie. the ICE just provide regenerative power to the batteries. No need for a transmission; range isn't an issue; etc. Or is that what hybrids already do?
      • Yes we can, yes we have but no it's not necessarily the best choice entirely.

        One of the discontinued hybrids basically did that, but with an extra flourish that at highway speeds it connected the petrol motor to the wheels. That avoids the generator-motor inefficiency and in terms of the transmission, it relied on electronic synchronisation and a simple dog clutch.

        It was a neat design, from a techincal perspective. Mostly works as a full EV (with either battery or generator power), efficient use of the ICE

    • by shilly ( 142940 )

      This is a REX (range extender) PHEV. BMW had these in its i3 and Geely uses them in the LEVC (modern London black cab). They work OK, but they still add complexity compared to a full EV, and the battery-only range is always pretty underwhelming. On weight, what you save on the battery, you lose on adding the engine and drivetrain components, so it’s pretty much a wash. And not only do you still have to plug it in quite a lot, you also have to refuel with gas.

      I think the main advantage is one you didn

    • by AmiMoJo ( 196126 )

      Chinese batteries are so good and so cheap now that it's not worth putting the ICE in. Use the space for a bigger battery and charge it up every 4 hours of your roadtrip.

      Less maintenance, less to go wrong, better internal layout.

    • Easier and faster to refuel than a BEV (goodbye range anxiety)

      What do you mean by refuelling? As an EV owner it's something I am desperate to know. Are you saying you go somewhere to fill up your car? Why isn't it always full like my EV?

      Range anxiety is for the intellectually challenged.

      • It's not so much range anxiety for most people as it is questioning why they should pay more for a car that may be a hassle on a long trip.
  • Heat waves are always straining out the grid. We can't even keep an interstate maintained yet we are going to build out a whole electrical system for charging cars? Shirley you jest.

    • Heat waves are always straining out the grid. We can't even keep an interstate maintained yet we are going to build out a whole electrical system for charging cars? Shirley you jest.

      Being that the USoA has a higher percentage of uni-familar houses (as opposed to buildings) means that the theory is that you will use solar and wind (vertical turbines) power to charge a battery in your house, and use saad battery to charge your EVs at night. Failing that, you program your charger to charge the vehicle very late at night, when the grid is less used (most people are sl;eeping, with the lights off, not cooking, watching TV or washinbg and drying clothes).

      But, let's be real here, both option

  • ... state incentives on ...

    Like the US also does for local EV factories: The US government can talk about their subsidies lowering the cost of US-made EVs. The US also has "incentives" on the purchase of data cables, so the US government can talk about their subsidies lowering the cost of wi-fi and internet, and how US capitalism has lowered prices of wi-fi and internet subscriptions.

    Why is everyone looking at me, peculiarly?

  • Should the US allow in Chinese EVs?
    The climate crisis is dire, but is it dire enough to allow in affordable Chinese EVs or can we afford to wait for Tesla to make an affordable Tesla (no sense listing any other US car maker).
    • The climate crisis is dire, but is it dire enough to allow in affordable Chinese EVs

      If I understand the headlines, we'll all die in flaming agony if we don't immediately do everything possible right now. Apparently "everything possible" means "everything which doesn't cause competition for US firms or negatively affect any US job".

  • The US should do exactly what China does, subsidize the industry and the car sales to consumers instead of imposing a tariff which will just make EV's more expensive for consumers. The goal in switching to EV's is to get lots of people driving them soon. By making US EV's cost less that will encourage purchases. A tariff just screws over the consumer by forcing prices higher and slows adoption. Instead we should be competing with China on a level playing field and letting market competition decide which
    • The US should do exactly what China does, subsidize the industry and the car sales to consumers...

      Don't we already do this? I thought the taxpayers kicked in about $7,500 when you buy the right sort of EV (that is, everything but a Tesla S class for reasons).

      I have a better idea: drop both the subsidies and tariffs and let customers figure out what vehicles have the right price/feature tradeoff.

      • >> drop both the subsidies and tariffs

        That surrenders the US market to China, which realizes that renewables and electric vehicles are the future.

  • ...when you need them? Where's the arguments for the free market & open borders & competition & market "adjustments"? C'mon, let's hear y'all argue to kill of your already moribund manufacturing industry. Your plane manufacturing monopoly has turned toxic. Why not do the same with cars?
  • Holy shit that Wangyang U8 which I never heard of sounds f*cking awesome! Floats, runs an NVIDIA chip, tank turns, ... yes $150K but still awesome. And the models that writer saw at the auto show in China? Holy f*ck. Yeah I wish those were available in the U.S. instead of being protectionized away, it might bring a wake-up call and they look cool. The one with the 4K dashboard monitor as wide as the car looked cool too.

  • It's a dumb move, as US cars are the worst cars on the market and have always been subpar to others. If you want a safe/reliable car you stay away from US made cars. Yeah decades ago chinese cars were the worst (and then US), but these days, chinese cars are among the safest and best built (ok, you still have a slew of crap chinese brands with awful quality, those you get for a few $100-$1000). As an owner of a '96 Jeep Cherokee I know, I have it about 20 years now, love the design, but man, the quality is
  • Purchase a Chinese EV and take your life into your own hands. https://www.youtube.com/watch?... [youtube.com]

  • Geely has owned Volvo since 2010, so their vehicles have a good chance at having good manufacturing/design.

"The whole problem with the world is that fools and fanatics are always so certain of themselves, but wiser people so full of doubts." -- Bertrand Russell

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