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.”
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).
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.
(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.
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.
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.
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With the launch of the first-ever Class 8 vocational EV in the North American market, PACCAR Kenworth is raising the battery-electric bar and underscoring just how far the market has come since the Tesla Semi made its debut nearly a decade ago.
When Tesla pulled the wraps off its all electric Semi truck all the way back in November of 2017, the rest of the industry was hardly thinking about BEVs. Nearly a decade later, the world is still waiting for the Semi to begin regular production, and PACCAR is launching its second generation of HDEVs with the debut of this, the all-new Kenworth T880E vocational truck.
“The Kenworth T880E marks a groundbreaking milestone in Kenworth’s history as we bring to market the first Class 8 battery-electric solution built for vocational applications,” explains Kevin Haygood, Kenworth assistant general manager for sales and marketing. “The T880E is engineered to meet the evolving needs of operators and vocational fleets while still providing the durability, reliability and customization our customers expect.”
The new electric K-whopper is motivated by PACCAR’s in-house ePowertrain platform, capable of putting up to 605 hp and 1,850 lb-ft of peak torque to work, while delivering the same levels of drivability and dependability fleets expect from a Kenworth – but power and torque are only part of the T880E’s work-ready résumé.
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Open to work
Kenworth T880E; via PACCAR.
In addition to a stout, Class 8 electric chassis fitted with heavy-duty Kenworth brakes and axles, the T880E’s central drive eMotor allows for significant wheelbase flexibility so fleet buyers can spec out exactly the machine they need to get the job done. The T880E was also designed to enable lift axle installations from trusted Kenworth upfitters for a vocational-friendly BEV integration.
Additionally, the T880E features a wide selection of factory-installed options that include both high- and low-voltage ePTO (electric Power Take Off) ports, mechanical ePTOs, and the same wide array of body configurations as the ICE version.
Speaking of the ICE version, the electric T880E also can also be had in the same set-back front axle and set-forward front axle configurations with the same multi-piece hood construction. Inside the cab, the latest in driver-focused technology includes the Kenworth SmartWheel and a new 15″ DriverConnect digital touchscreen. Dash and vocational features like RAM Mounts and factory-installed PTO switches are available. The T880E is also offered with Kenworth ADAS packages for customers interested in DigitalVision Mirrors, Bendix Fusion, and Lane Keeping Assist.
It’s so big, you guys
Kenworth T880E; photo by the author.
The T880E was on static display at last week’s ACT Expo in Anaheim, California. Check with your local Kenworth dealer for availability.
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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. (!)
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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.
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.
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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.
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.
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.
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