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.”
FTC: We use income earning auto affiliate links. More.
Powered by tech giant Huawei 5G-Advanced network, a fleet of over 100 Huaneng Ruichi all-electric autonomous haul trucks and heavy equipment assets have been deployed at the Yimin open-pit mine in Inner Mongolia.
With more than 100 units on site, China’s state-backed Huaneng Group officially deployed the world’s largest fleet of unmanned electric mining trucks at the Yimin coal plant in Inner Mongolia this past week. The autonomous trucks use the same Huawei Commercial Vehicle Autonomous Driving Cloud Service (CVADCS) powered by the ame 5G-Advanced (5G-A) network that powers its self-driving car efforts. Huawei says it’s the key to enabling the Yimin mine’s large-scale vehicle-cloud-network synergy.
Huawei is calling the achievement a “world’s first,” saying the new system has improved operator safety at Yimin while setting new benchmarks for AI and autonomous mining.
The autonomous mine project aligns with a broader push by Chinese government and industry to integrate AI and advanced connectivity into traditional industries – an approach we’ve already seen meet with great success in port environments by Hesai and Westwell.
And, if technology like Rocsys’ charging robots take off, these autonomous haul trucks won’t even need anyone to plug them in at the end of their shifts!
For their part, Huaneng Ruichi claims its cabin-less electric offer an industry-leading 90 metric ton rating (that’s about 100 imperial tons) and the ability operate continually in extreme cold temperatures as low as -40° (it’s the same, C or F), while delivering 20% more operational efficiency than a human-driven truck.
The Huawei-issued press release is a bit light on truck specs, but similar 90 tonne electric units claim 350 or 422 kWh LFP battery packs and up to 565 hp from their electric drive motors and some 2,300 Nm (1,700 lb-ft) of tq from 0 rpm.
Huawei executives said the Ruichi trucks reflect the company’s vision for smarter mining operations, with the potential to introduce similar technologies in markets like Africa and Latin America. The 100 asset electric fleet marks the first phase of a plan to deploy 300 autonomous trucks at the Yimin mine by 2028.
Electrek’s Take
From drilling and rigging to heavy haul solutions, companies like Huaneng Group are proving that electric equipment is more than up to the task of moving dirt and pulling stuff out of the ground. At the same time, rising demand for nickel, lithium, and phosphates combined with the natural benefits of electrification are driving the adoption of electric mining machines while a persistent operator shortage is boosting demand for autonomous tech in those machines.
The combined factors listed above are rapidly accelerating the rate at which machines that are already in service are becoming obsolete – and, while some companies are exploring the cost/benefit of converting existing vehicles to electric, the general consensus seems to be that more companies will be be buying more new equipment more often in the years ahead – and more of that equipment will be more and more likely to be autonomous as time goes on.
SOURCES | IMAGES: Huawei, South China Morning Post, and Supply Chain Digital.
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.
Tesla has started accepting Cybertruck trade-ins, something that wasn’t the case more than a year after deliveries of the electric pickup truck started.
We are starting to see why Tesla didn’t accept its own vehicle as a trade-in: the depreciation is insane.
The Cybertruck has been a commercial flop.
When Tesla started production and deliveries in late 2023, the vehicle was significantly more expensive and had less performance than initially announced.
At one point, Tesla boasted having over 1 million reservations for the electric pickup truck, but only about 40,000 people ended up converting their reservations into orders.
Now, Cybertruck inventory is sitting unsold for months and Tesla is having to offer heavy discounts to move them.
We previously reported that Tesla refused to accept the Cybertruck, its own vehicle, as a trade-in more than a year after starting deliveries.
Tesla didn’t share an explanation at the time, but we assumed that the automaker knew the Cybertruck was depreciating at an incredible rate and didn’t want to be stuck with more trucks than it was already dealing with.
Now, Tesla has started taking Cybertruck trade-ins, at least for the Foundation Series, and it is now providing estimates to Cybertruck owners (via Cybertruck Owners Club):
Tesla sold a brand-new 2024 Cybertruck AWD Foundation Series for $100,000. Now, with only 6,000 miles on the odometer, Tesla is offering $65,400 for it – 34.6% depreciation in just a year.
Pickup trucks generally lose about 20% of their value after a year and 34% after about 3-4 years.
It’s also wroth nothing that Tesla’s online “trade-in estimates” are often higher than the final offer as noted in the footnote o fhte screenshot above.
Electrek’s Take
This is already extremely high depreciation, but Tesla is actually trying to save face with estimates like this one.
As Tesla wouldn’t even accept Cybertruck trade-ins, used car dealers also slowed down their purchases as they also didn’t want to be caught with the trucks sitting on their lots for too long.
On Car Guru, the Cybertruck’s depreciation is actually closer to 45% after a year and that’s more representative of the offers owners should expect from dealers.
That’s entirely Tesla’s fault. The company created no scarcity with the Foundation Series. They built as many as people wanted. In fact, they built too many and ended having to “buff out” the Foundation Series badges on some units to sell them as regular Cybertrucks and as of last month, Tesla still had some Cybertruck Foundations Series in inventory – meaning they have been sitting around for up to 6 months.
Now, Tesla is stuck with thousands of Cybertrucks, early owners are already getting rid of their vehicles at an impressive rate, and the automaker had to slow production to a crawl.
FTC: We use income earning auto affiliate links. More.
Australian logistics company Linfox is making big moves to electrify its heavy-duty semi fleet with the addition of thirty new Volvo FH and FM Electric semi trucks as the Swedish brand works to begin production at its Brisbane facility.
Volvo Trucks is expecting to begin full scale production of its FH and FM Electric semi trucks at the Brisbane factory in early 2026, just in time to fill the Linfox order – which happens to be the company’s largest in Australia. So far.
“We are very proud to continue our close partnership with Linfox. The order for 30 Volvo electric trucks is proof of their trust in our company and in zero-emissions transport as a viable solution here and now,” said Roger Alm, President Volvo Trucks. “Our commitment to start building electric trucks in Australia demonstrates our confidence in this technology, and means we can offer an industry-leading range of purpose-built electric trucks all around the world.”
With the production kickoff of electric trucks in Australia, it means Volvo Trucks is building its big HDEVs and prime movers in five countries on three continents. Which, as the company’s electric fleet approaches the 100 millionth mile logged mark, probably means they’re pulling well ahead of some of the other guys.
“Linfox is excited to partner with Volvo in driving the future and leading sustainable logistics in Australia,” explains Peter Fox AM (Member of the Order of Australia), Executive Chairman of Linfox. “Further electrifying our fleet sets the standard for us and our customers and the entire industry.”
Linfox’ latest order includes 29 Volvo FH Electric and one FM Electric semi. The company currently has four electric Volvo trucks in its fleet of 195 semis, with plans to continue to electrify as ICE-powered assets reach retirement.
Electrek’s Take
Now counting miles in operation in the tens of millions and rolling out its third generation of electric semi trucks, Volvo (and, by extension, Mack and Renault) continue to build a huge lead in the commercial trucking space. The competition, meanwhile, seems content to post pictures of its first factory while trucks that have been on order for years still haven’t reached customers.
I can’t see how they (Tesla) catch up from here.
SOURCE | IMAGES: Volvo Trucks.
FTC: We use income earning auto affiliate links. More.
-
Sports3 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports1 year agoStory injured on diving stop, exits Red Sox game
-
Sports2 years agoGame 1 of WS least-watched in recorded history
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports4 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment2 years agoGame-changing Lectric XPedition launched as affordable electric cargo bike
-
Business3 years agoBank of England’s extraordinary response to government policy is almost unthinkable | Ed Conway