China tells automakers to pause investment in tariff-supporting countries
China has reportedly already told its major automakers to hold off investments in EU countries that supported Europe’s new EV tariffs, according to Reuters.
While China started a little slow in the EV game, its investments into EV manufacturing have now started to bear fruit, and the country’s manufacturers have rapidly caught up and now passed western automakers, particularly on price.
As a result, both Europe and the US have recently imposed large tariffs on Chinese EVs, fearing that Chinese cars will undercut domestic industry with lower manufacturing costs. Chinese EVs are already quite popular in Europe, though very few sell in the US.
While the EU tariff vote passed handily, the voting patterns among countries mostly reflected fear of retaliatory tariffs. As is often the case with tariffs, a country can’t simply impose a restriction without expecting any pushback.
This is why, for example, Germany voted against the final tariff despite abstaining for the initial vote. German automakers do a lot of high-margin business in China, and worried that China would no longer purchase their autos either because of retaliatory tariffs or consumer animosity towards foreign brands (which is already happening, well before these tariff talks).
And China specifically has been quite effective in the past at responding to tariffs with targeted retaliatory tariffs of its own. Indeed, they’re already investigating EU dairy and wine products as potential tariff targets.
So it’s no surprise that today, on the same day as EU’s new tariffs went into effect, a report from Reuters says that the Chinese government has told automakers to think carefully before investing in Europe, particularly in countries that voted in favor of or abstained from the EU’s tariff imposition.
Several Chinese automakers are already considering building factories in Europe in order to localize production and bypass tariffs, including BYD, Geely and XPeng. This is kind of the intended effect of tariffs – ensuring that foreign automakers will invest in local production and local jobs.
But China wants to ensure that that investment money goes to countries that didn’t vote in favor of tariffs. BYD for example is currently building a plant in Hungary, a country that voted against the tariffs.
Meanwhile, other countries that did vote for the tariffs have attempted to get Chinese firms to invest in building factories there, like France and Italy. But this new directive would make their path towards investment tougher, if Chinese firms follow the government’s guidance.
This is likely not the only action that China will take in response to EU’s tariffs, merely a preliminary one. But it does show China’s willingness to swiftly respond to countries imposition of trade restrictions.
Concurrently, discussions are ongoing between EU and China about a potential minimum pricing deal to avoid tariffs. The hope was for those to conclude before tariffs were imposed, but it seems that they will have to continue.
Electrek’s Take
As I’ve said many times before, tariffs on China are not the answer to winning the EV arms race. I think countries would be much better off incentivizing local production than disincentivizing overseas production, and all the messy secondary effects that come along with the latter.
Further, tariffs can often lead to a sense of complacency for domestic manufacturers, who encourage them so they can have time to ramp up, and then take that time to slow-roll their ramp so that they end up back where they started. We saw this in the 70s with Japan in steel and autos – and the emergency tariffs did not forestall 50 years of Japanese export dominance (they were only kicked dethroned as #1 auto exporter last year – by China).
So despite the entrance of China onto the international automaker stage, most of the last year has been characterized by automakers doing their damnedest to slow down EV adoption. They’re scaling back production plans despite increasing EV demand , they’re begging governments to allow them to pollute more, and they’re generally not indicating that they’ll use the “time” these tariff impositions have given them wisely.
If this continues, then all Europe will get for its tariffs are a delay of the inevitable. They might still get some factories, but those factories will be owned by foreign entities instead of local ones. And this will come along with a lot of pain for whichever industries China decides to target with retaliatory tariffs, and with less competition and more inflation for local consumers as auto prices are buoyed by these tariffs.
I know I keep repeating myself (for more than a decade now…), but the true answer to this would have been to take EVs seriously from the get-go, instead of all the waffling that Western automakers have done that has left them now behind. That should have started long ago, but as the famous (possibly Chinese) proverb says: “the best time to plant a tree is 20 years ago, the second best time is today.”
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Japanese equipment giant Komatsu has added a not-so-giant electric excavator to its growing lineup of battery-powered construction equipment. The new Komatsu PC20E-6 electric mini excavator promises a full day of work from a single charge.
Komatsu says the design of its latest mini excavator was informed by data sourced from more than 40,000 working days of comparably-sized diesel excavators. The company found that, in 90% of its global customers’ mini excavator deployments, these vehicles are in active use for less than 3.5 hours per day.
“This defined the target for the required, reliable working time with the excavator,” reads the Komatsu web copy. “This result makes it possible for Komatsu to offer an attractively priced machine with a performance that exactly matches the requirements.”
Keeping costs down are relatively conservative specs. Komatsu chose to power the PC20E-6 with a 23.2 kWh battery pack sending electrons to an 11 kW (~15 hp), high-torque electric motors. Not exactly super impressive on paper, but the machine has an operating weight of 2,190 kg and enough juice for up to four (4) hours of continuous operation.
More than enough, in other words, to have completed 90% of of those 40,000 work days the company analyzed.
Getting it done
If, for some reason, that four hours’ runtime isn’t enough, an on-board charging option for 230V and 3kW charging power compatible with various plug adapters is standard, with an external DC quick charger for 400V and 12 kW charging as optional. In either case, it won’t be long before the machine is back at work.
To help the later adopters sleep well about their battery-powered investments, the PC20E-6 ships with Komatsu’s E-Support maintenance program, which includes free scheduled maintenance by a Komatsu-trained technician, a 3 year/2,000 hour warranty on the machine, plus a 5 year/10,000 hour warranty on the electric driveline. The company says the battery should last 10 years.
“The Komatsu E-Support customer program is included free of charge with every market-ready electric mini excavator and offers exclusive machine support,” said Emanuele Viel, Group Manager Utility at Komatsu Europe. “The bottom line is that the risk for the end customer is significantly reduced, especially when it comes to exploring the electrification advances in the industry.”
Komatsu hasn’t released official pricing quite yet, but has revealed that the P20E-6 will begin series production this October.
SOURCE | IMAGES: Komatsu.
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Tesla has unexpectedly terminated a contractor’s contract at Gigafactory Texas, resulting in the layoff of 82 workers who were supporting the automaker’s production at the giant factory in Austin.
MPW Industrial Services Inc., an Ohio-based industrial service provider specializing in cleaning and facility management, has issued a new WARN notice, confirming that it will lay off 82 workers in Texas due to Tesla unexpectedly ending its contract with the company.
Here are the details from the WARN notice:
- State / agency: Texas Workforce Commission (TWC).
- Notice date: August 27, 2025.
- Employees affected: 82
- Likely effective date: September 1, 2025
- Context from the filing/letter: layoffs tied to an unexpected termination of a major customer contract (Tesla—Gigafactory Texas, 1 Tesla Road); positions include 61 technicians, 7 team leads, 7 supervisors, 7 managers; no bumping rights; workers not union-represented.
In April 2024, Tesla initiated waves of layoffs at the plant, resulting in the dismissal of more than 2,000 employees in Austin, Texas.
Since then, Tesla’s sales have been in a steady decline. While the automaker is expected to have a strong quarter in the US in Q3 due to the end of the tax credit, sales are expected to decline further in Q4 and the first half of 2026.
Many industry watchers have expected Tesla to initiate further layoffs due to the situation.
Electrek’s Take
We may be seeing the beginnings of a new wave of layoffs at Tesla, as the automaker typically starts with contractors.
To be fair, Tesla could also potentially end the contract unexpectedly for other reasons, but the timing does align with the need to cut costs and staff ahead of an inevitable downturn in US EV sales.
I think it’s inevitable that we start seeing some layoffs. I think Tesla will have to slow down production in the US to avoid creating an oversupply, especially in Q4-Q1.
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First, it was e-bikes, offering an efficient, effective, and low-cost way for teens and just about everyone to zip around town, yet drawing the temper of suburban traditionalists. Now golf carts are the new public enemy number one in suburbia, at least if you ask the growing number of online groups where residents complain about these small electric vehicles “clogging” their streets.
But beyond the hand-wringing, golf carts and their more sophisticated cousins known as Neighborhood Electric Vehicles (NEVs) or Low Speed Vehicles (LSVs), are quietly becoming a popular alternative to cars for short trips around US cities and suburbs.
While most people still associate golf carts with retirement communities in Florida or slow rides across 18 holes, street-legal versions have been around for the last few decades.
But these aren’t your grandpa’s bare-bones carts, complete with a golf pencil clip. Many now come with DOT seat belts, lights, turn signals, mirrors, backup cameras, and speed limiters that allow them to operate legally on roads up to 35 mph, as long as they meet all the federal requirements for Low-Speed Vehicles (LSVs).
That means such vehicles are legally allowed to operate like cars, trucks, bicycles, or motorcycles on the vast majority of residential streets and a surprising portion of urban grids. In other words, for grabbing groceries, school drop-offs, or cruising to a friend’s house, they’re a practical, cheaper, and far greener substitute for firing up a 5,000-pound SUV.
Golf carts have been slowly taking off for years, but the pandemic accelerated the trend. Sales of golf carts and LSVs spiked as families looked for safe, outdoor transportation and an easy way to get around their neighborhoods. Now, in cities all over the country, the sight of parents driving their kids to school or running errands in a cart is increasingly common. In some towns, petitions have even popped up with hundreds of residents asking for local ordinances to legalize them on more streets, according to the Daily Mail.
Of course, not everyone is thrilled. There’s growing backlash against the increase in golf carts on streets, with many residents calling them a “plague” and complaining that they’re taking up space on the roads, in parking lots, or creating unsafe conditions. While rare, there have been serious accidents too, with a handful of tragic cases highlighting the dangers of mixing small, lightweight carts with full-size vehicles. Critics argue that carts lack the crash protection of cars and don’t always fall under homeowners’ insurance policies if an accident happens.
But for every critic, there’s a supporter pointing out that golf carts take cars off the road, save money on fuel, and are no more dangerous than scooters or e-bikes – modes of transport that already share the streets. And major golf cart makers have been happy to respond to the demand with boosted sales and new models. Companies like E-Z-GO, Club Car, WAEV, Kandi, and others are all rushing new models to the market as more suburban commuters discover that their next electric vehicle might just cost a fraction of what they thought it would – and come with a better breeze, too.
Electrek’s Take
If I didn’t know any better, I’d say it’s like the Karens are just following me around to poo-poo on any alternative vehicle I happen to drive that week. They’ve hit all my favorites. Pretty soon, they’ll be coming for my electric tractors, too!
But seriously, this feels like déjà vu. The same arguments we’ve heard for years against e-bikes are now being recycled against golf carts: too unsafe, too disruptive, too “different” from the car-centric status quo.
But the reality is, again, quite the same as e-bikes. These are small electric vehicles that make a ton of sense and are totally street legal, at least when they’re built correctly to conform to the proper laws.
They come with a lot of the same benefits, too. They’re cheap to operate, easy to park, perfect for short trips, and they prevent larger cars from needlessly clogging residential streets. Will they ruffle feathers among the kind of folks who have had one too many frisbees land in their yard? Perhaps. But much like e-bikes, their popularity is only going one direction – up.
I leave you with a few images of perhaps my favorite of all, the Kandi Mini. The nay-sayers can pull it from my cold, dead, golf
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