Connect with us

Published

on

Mary Barra is sounding the alarm. GM’s CEO warned that China’s escalating EV price war is putting automakers globally under intense pressure. Although she called it a “race to the bottom” with many companies losing money, Barra admitted that the American automaker isn’t immune.

“It has become a race to the bottom with pricing and the level of subsidies,” Barra told Fortune editor-in-chief Alyson Shontell on Wednesday.

At Fortune’s 2024 Most Powerful Women Summit this week, GM’s CEO said the company wants to stand out despite the influx of low-cost Chinese electric cars in global markets.

Although she generally believes in free trade, Barra explained things are more complicated in China. The country’s rapid adoption of EVs and hybrids has caused major changes in China’s auto market with heavy subsidies and many still losing money.

Many major global auto markets, including the US and EU, recently raised tariffs on Chinese EV imports to “protect” domestic companies.

In May, President Biden announced a 100% tariff rate on EVs imported from China, citing “unfair trade practices.” In a press release, the administration said the move would “protect American manufacturers.”

GM-China's-EV
US President Joe Biden during the opening of GM’s Factory Zero EV plant (Source: GM)

Legacy automakers are struggling to keep up with low-cost EVs from China, like BYD’s Seagull, starting under $10,000 (69,800 yuan).

Even in overseas markets, like South America, the Seagull (known as the Dolphin Mini overseas) is among the most affordable electric options at around $20,000 (99,800 reals).

Mexico-cheap-EVs
BYD Seagull (Dolphin Mini) testing in Brazil (Source: BYD)

GM looks to overcome China’s EV price war

GM is among most foreign automakers feeling the heat in China’s surging EV market. Although EVs and PHEVs, or new energy vehicles (NEVs), outsold gas-powered cars for the first time in China this summer, GM’s sales in the region are down by double-digits this year.

As gas-powered vehicles continue falling out of favor, GM’s overall sales in China slid 21% in Q3 compared to last year.

GM-China-EVs
(Source: GM China)

Despite this, Barra remains optimistic as its investments over the past few years are starting to pay off. GM and its joint ventures also sold more NEV models than gas cars for the first time in China in Q3, with a 53% share.

In the US, GM’s electric vehicle sales surged 60% in Q3, with a record 32,095 models sold. “GM’s EV portfolio is growing faster than the market because we have an all-electric vehicle for just about everyone,” Rory Harvey, GM’s executive vice president of global markets, said.

GM-China-EVs
Chevy Blazer EV (left), Chevy Equinox EV (middle), Chevy Silverado EV (right) (Source: GM)

With its core brands, including Cadillac, Chevrolet, and GMC, all seeing strong YOY growth, GM topped Hyundai Motor (including Kia and Genesis) and Ford to become the second to only Tesla in Q3, according to Cox Automotive.

Barra suggested that more growth is on the way, especially as more charging options are available in the US.

“I think every quarter the charging infrastructure gets better, and it’s going to open up for more and more people to be able to legitimately consider an EV,” Barra said.

GM-China-EVs
Chevy Silverado (left), Equinox (middle), and Blazer (right) EVs at a Tesla Supercharger (Source: GM)

Last month, the company released its NACS adapter, unlocking Tesla’s vast Supercharging network for GM EV owners.

GM’s leader stressed, “We’ve got to continue to have affordable vehicles that people want to own.”

2025 Chevy Blazer EV trim Starting MSRP (includes DFC)   Range   Horsepower   Torque   Availability  
FWD   $45,995    TBC   220    243 lb-ft   Available to order soon  
AWD   $48,995   EPA-estimated 283 (previously 279)   300 (previously 288)   355 lb-ft (previously 333 lb-ft)   Available now  
RWD   $56,990   EPA-estimated 334 (previously 324)   365 (previously 340)   325 lb-ft   Available to order now  
SS   $61,995   TBC   595 with Wide Open Watts (previously announced 557) Wide Open Watts mode can accelerate from 0 – 60 in 3.4 seconds   645 lb-ft with Wide Open Watts   Available Q1 2025  
2025 Chevy Blazer EV prices and range by trim (Source: Chevrolet)

The company has several new electric models that are quickly winning over customers, including the Chevy Equinox, Blazer, and Silverado EVs.

Launched last month, the 2025 Chevy Blazer EV is available at a lower $45,995 price tag. Meanwhile, the long-awaited $35,000 electric Equinox is finally arriving at dealerships. Both qualify for the $7,500 EV tax credit.

FTC: We use income earning auto affiliate links. More.

Continue Reading

Environment

Xiaomi SU7 Ultra gets its groove back with all 1,548 hp available NOW

Published

on

By

Xiaomi SU7 Ultra gets its groove back with all 1,548 hp available NOW

The tire-blistering SU7 Ultra has been the Xiaomi brand’s flagship super sedan since its launch, but a controversial software setting has limited the car to “just” 900 hp in regular driving – resulting in an outcry from owners who ponied up for the big boy numbers. With its latest software update, that missing 648 hp is back on tap!

The SU7 Ultra made waves throughout the performance car world when a bright yellow striped example lined up alongside a white quarter mile king, the 1,000+ hp Tesla Model S Plaid, and promptly smoked it.

That wasn’t all. A preproduction SU7 Ultra prototype lapped the legendary Nürburgring circuit in just 6 minutes and 46.874 seconds, firmly stamping the 1,500+ hp Xiaomi’s alphanumeric into the track’s record books with a time nearly fifteen seconds quicker than a Rimac Nevera or, on the ICE front, either a Corvette ZR1, Viper ACR, or Porsche 918 (take your pick).

It’s hardly any wonder, then, that the customers who signed up – in droves, too – were disappointed to learn that the SU7 they were allowed to buy had been neutered by the safety nannies to the tune of nearly 650 hp. (!)

Advertisement – scroll for more content

We’re so back

The outrage from SU7 Ultra owners was immediate. And, facing mounting pressure online and on social media, Xiaomi ultimately decided to withdraw the performance-limiting features while acknowledging the need for more transparent communication about future software updates they messed up, saying in a statement, “we appreciate the passionate feedback from our community and will ensure better transparency moving forward.”

So, rich people can rocket themselves down the road in 9 second hypercars again and all is right with the world. A happy ending – but one that sort of illuminates a fresh set challenges for automakers peddling “software-defined vehicles” to a market that still thinks of their cars as very much hardware defined products.

That’s evidenced by the resistance to pay for features by subscription and complaints by more informed customers that “software locked” range and convenience features just subsidize the cost of more expensive trim levels and pad profits for manufacturers and suppliers.

The new reality is playing out in real time now, and the Jeff Bezos-backed $20,000 electric compact pickup from Slate Auto is going the other way entirely – time will tell whether more, or less tech is the answer.

SOURCE | IMAGES: Xiaomi, via CarNewsChina.


If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them. 

Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.

FTC: We use income earning auto affiliate links. More.

Continue Reading

Environment

Tesla (TSLA) discounts new Model Y in the US, pointing to demand issues

Published

on

By

Tesla (TSLA) discounts new Model Y in the US, pointing to demand issues

Tesla (TSLA) has started offering reduced interest rates on the new Model Y in the US — this equates to a direct discount on the brand new vehicle that was supposed to spark Tesla’s demand back.

The automaker has announced “1.99% APR or $0 Due at Signing available for well-qualified buyers” on the new Model Y in the US for the first time:

This amounts to a direct discount worth a few thousand dollars. It is the first widely available discount on the new Model Y coming just weeks after the cheaper non-Launch Edition launched in the US.

It follows a $2,000 direct discount that Tesla offered to early Model Y owners last week.

Advertisement – scroll for more content

These discounts and subsidized financing point to soft demand for the updated best-selling vehicle in the US. Tesla just delivered a disastrous first quarter, which it mostly blamed on the Model Y changeover, resulting in lower inventory.

However, industry watchers, including Electrek, noted many signs that the Model Y changeover was not the only issue. Tesla added significantly to its inventory in the first quarter, and the wait times for the new Model Y were extremely short.

Now, the discount weeks after launching the new Model Y confirm the soft demand in the US.

It’s not as bad as Europe and China, where Tesla has already been offering 0% financing on the new Model Y for weeks.

Electrek’s Take

I think it’s clear by now: the new Model Y is not coming to save Tesla.

Let’s be honest: It will still be a significant vehicle program by volume. It just won’t help Tesla return to growth this year.

The RWD Model Y is still coming and has a chance to help in the US. It is already available in China, and it’s not helping Tesla much there, but that’s in a hyper-competitive market, especially at lower prices where the RWD Model Y operates.

Tesla’s performance in Q2 in China will be interesting since it is basically back to its regular lineup for the whole quarter.

The US appears to have been Tesla’s least affected market, but Q3 will be the real test with the full lineup and no backlog of demand for new Model Y.

FTC: We use income earning auto affiliate links. More.

Continue Reading

Environment

Major US electric bike brand announces response to tariffs

Published

on

By

Major US electric bike brand announces response to tariffs

One of the largest electric bike brands in the US, Aventon, has recently shared several details about the company’s response to US tariffs on imported goods. The details reveal insight into how large e-bike makers are coping with the major disruption caused by the trade war launched by the Trump administration.

In a comprehensive post, Aventon covered the company’s response to several issues, from supply chain disruptions to manufacturing shifts to pricing policy.

Shift in manufacturing away from China

Like many e-bike brands, as Trump’s threats to cripple US imports from China grew, the company began focusing on alternative manufacturing locations. Despite being based in China and enjoying something of a home field advantage, the impact of potentially heavy tariffs threatened to offset the benefits of China’s lower-cost manufacturing and close proximity to the e-bike component supply chain.

Other Southeast Asian countries like Vietnam, Cambodia, and Thailand are seen as prime locations to shift e-bike manufacturing outside of China. Ironically, many of the new bicycle factories opened in these countries are actually Chinese-owned, built as investments by the very factory owners who anticipated a manufacturing shift brought on by tariffs initiated during the first Trump administration and increasingly hostile American rhetoric towards China.

Advertisement – scroll for more content

However, moving manufacturing outside of China comes with increasing costs and complexities beyond mere labor and investment in local manufacturing expertise. “The lack of localized suppliers means critical parts (e.g., motors, batteries) still often come from China,” explained Aventon. “This creates a logistical puzzle: components are shipped to Southeast Asia for assembly, then transported to the U.S. This multi-step process adds 50+ days to shipment times compared to direct manufacturing in China.”

Pricing could still take a hit

While the tariffs on other countries pale in comparison to the current 170% tariffs on Chinese e-bikes (145% retaliatory tariffs on top of 25% Section 301 tariffs), there’s no guarantee that tariffs on e-bikes from countries like Vietnam and Thailand will remain comparatively low. The current tariff on e-bikes from countries other than China sits at a minimum of 10%, but those could rise this summer after a 90-day pause granted by the Trump administration ends without a new negotiated deal or backtrack from the administration.

Those tariffs, Aventon made clear, are not paid by the countries who produce the goods, but rather by the companies who import them, and then ultimately by American consumers. “Tariffs are paid by importers during customs clearance before products reach the U.S. soil. These costs typically trickle down to consumers through price adjustments,” Aventon explained.

For now, Aventon has committed to keeping costs as low as possible by absorbing the increase in costs. “In early 2025, we proactively shifted 100% of our production to Thailand, investing in factory partnerships by sending Aventon key stakeholders from the production, quality control, and industrial engineering teams. While this transition increased our manufacturing and logistics costs by 10-15%, we’ve chosen to absorb many of these expenses.”

The brand cited sensitivity to inflation in the US causing an increase in living costs as one of the key reasons it intends to absorb the current price increases, which Aventon says aligns with its long-term vision of “keeping electric bikes accessible to everyone, not just those who can afford premium pricing.”

Can e-bikes be produced in the US?

For its part, Aventon won’t be bringing production of its electric bikes to the US anytime soon, citing a lack of domestic supply for critical components and the heavy tariffs applied to those components.

However, the company doesn’t rule out the possibility for e-bike assembly to occur on a smaller scale if tariffs are lifted, potentially as a precursor to true manufacturing in the future.

“Unfortunately, there is no supply chain of e-bike components here in the US and all key components are imposed with significant tariffs coming from China. Having e-bikes made in the US is not practical unless the parts tariffs are lifted. Then assembly first, followed by key components manufacturing in the long run, is possible.”

aventon sinch.2 electric bike

Electrek’s Take

There are a few things to unpack here. First of all, Aventon is right. Electric bike manufacturing isn’t coming to the US. While the company correctly cited the lack of a domestic supply chain as a key issue, what they perhaps wisely left unsaid is that the world experts on building bicycles currently live in China. Unless someone is going to invest millions in infrastructure to build factories and then pay the millions more it will take to train and payroll a new bicycle-building workforce, then it just isn’t going to happen.

Yes, small-scale bicycle building is happening in the US. Electric Bike Company in Newport Beach, Californiais a prime example. They deserve all the respect in the world for building e-bikes in the US for years, long before tariffs were an issue. However, the most important components for their e-bikes come from China, and I don’t see how they can survive without raising prices substantially to cover the near-tripling cost of the most important components. And if they raise prices, then that’s another threat to their future.

Next, there’s something ironic about a Chinese-owned e-bike company telling Americans that it will keep prices lower because it knows Americans are already hurting financially. If the Murica crowd were ever to do some reflecting, this might be the time. There’s nothing wrong with being patriotic and wanting your country to succeed, but if the other country you’re trying to spite feels sympathy for you and thinks you need help, perhaps the “America First” policies aren’t working the way it was hoped.

And lastly, keep in mind that this is all extremely volatile and fluid. There is absolutely no stability in the e-bike market right now, nor larger global trade. This entire global financial tailspin was sent into action by the whims of one geriatric firebrand, and it can change just as quickly. Trump could decide to reduce tariffs on China tomorrow to prevent supply crises in the US, or he could double down and put similar embargo-level tariffs on countries like Vietnam, Cambodia, and Thailand. It could literally go either way in a single day, or it could stagnate for months, with recent events showing us that both possibilities could be just as likely. The point being, this is the situation today, but no one knows what could come tomorrow.

Ooof – I need to go for a bike ride.

FTC: We use income earning auto affiliate links. More.

Continue Reading

Trending