GM braces for a $5 billion hit as it fights to keep up in China’s intensifying EV price war
As it struggles to keep up with low-cost rivals like BYD, GM expects to suffer a $5 billion blow to its business in China. The multi-billion hit comes as GM rapidly loses market share in the world’s largest EV market.
GM sees $5 billion impact from restructuring in China
GM’s Chinese joint venture, SAIC-GM (SGM), a 50-50 partnership with state-owned SAIC Motor, is facing an over $5 billion impact as it restructures the business.
SAIC-GM revealed in a regulatory filing on Wednesday (via The New York Times) that it expects to write down between $2.6 billion and $2.9 billion in the fourth quarter. The automaker is also expecting another $2.7 billion in restructuring expenses.
According to the filing, GM’s latest measures will include “plant closures and portfolio optimization.” However, no specifics were given about which facilities would be included.
GM is “focused on capital efficiency and cost discipline” as it works with SGM to “turn around the business in China.” The company is close to finalizing a restructuring plan and expects year-over-year (YOY) improvement in 2025.
The announcement comes as GM’s market share in China has nearly halved over the past 10 years. GM’s market share in China fell from around 15% in 2015 to just 8.6% last year.
With three straight quarterly losses, GM has lost nearly $350 million in China this year. Its sales are down nearly 20% through the first nine months of 2024.
Like most legacy automakers, GM is struggling to keep pace with low-cost EV makers like BYD in China. BYD sold a record 506,804 vehicles in November, its second straight month topping the 500,000 mark. Through the first 11 months of the year, BYD has sold over 3.7 million EV and PHEV models.
BYD surpassed Volkswagen to become China’s top-selling car brand last year, ending the German automaker’s four-decade run.
As it expands overseas, BYD is now on pace to surpass Ford in global deliveries, which could make it the sixth-largest automaker globally.
Electrek’s Take
With low-priced EV models, like its top-selling Seagull, starting under $10,000 in China, BYD is squeezing legacy automakers like GM, VW, and Ford out of the market.
As it looks to overcome the new wave of EVs launching in China, BYD is quickly expanding in overseas markets like Southeast Asia, Central and South America, and parts of Europe.
For the first time in Q3, BYD delivered more vehicles than Nissan and Honda. Can it catch up to Ford and other leading global automakers? Although best known for its cheap EV models, China’s auto giant is quickly expanding into new segments like pickup trucks, midsize smart SUVs, and luxury models.
GM’s CEO Mary Barra told Fortune in October that China’s EV price war “has become a race to the bottom with pricing and the level of subsidies.” Barra explained that low-cost loans enable some companies to sell cars at a loss, which puts pressure on foreign automakers like GM.
Meanwhile, in the US, GM sold a record 32,095 EVs in the third quarter, up 60% year over year. The record sales were enough to top Ford and Hyundai, making GM the number two seller of EVs in North America, behind Tesla.
GM said its EV profitability in North America is steadily improving. The company expects to generate between $10.4 billion and $11.1 billion in net income this year.
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Environment
BYD’s best-selling EV arrives in Europe as the Dolphin Surf with prices starting at $26,000
BYD’s electric hot hatch has officially arrived in Europe. The BYD Dolphin Surf is the European version of its best-selling (and most affordable) EV, the Seagull. Despite its small size, the Dolphin Surf has “huge potential” with prices starting at just 23,000 euros ($26,000).
Meet the BYD Dolphin EV for Europe
With over 55,000 units sold last month alone, the Seagull was BYD’s top-selling EV in April. Last year, it was second, trailing only Tesla’s Model Y as the best-selling electric vehicle in China. Now, you can buy it in Europe.
BYD launched the Dolphin Surf on Wednesday, a longer version of the Seagull with a few upgrades. Although not quite as cheap as the Seagull, which starts at under $10,000 (69,800 yuan) in China, the electric hatch is still one of the most affordable in Europe.
The Dolphin Surf is available in three different versions in Europe, with prices starting at 22,990 euros ($26,000) for the standard range model with a WLTP driving range of 220 km (137 miles).
Until June, BYD is offering a discounted price of just 19,990 euros ($22,700). The longer-range Dolphin Surf starts at 24,990 euros and has a 507 km (315 mile) range.
BYD said the compact electric city car is “built for the big city” with a sporty new design and the automaker’s advanced in-car technology.
Built for the big city
The interior is similar to other BYD vehicles, with a 10.1″ rotating touchscreen (with Apple CarPlay and Android connectivity) at the center. It’s also equipped with “Hi BYD,” a new voice control feature.
Although it may be compact, the Dolphin Surf has over 20 “clever storage areas” and a boot capacity of up to 316 L. With the rear seats folded, the electric hatch offers up to 1,037 L of space.
Like its other new vehicles, the Dolphin Surf is equipped with BYD’s Advanced Driver Assistance System (ADAS) as standard, which includes features like intelligent cruise control, automatic emergency braking, and lane-departure assist.
BYD will introduce the four-seater variant in June. With prices expected to start at around 25,000 euros ($28,300), it’s expected to compete with the Renault R5 and Volkswagen’s upcoming ID.2 electric car.
BYD’s region director, Maria Grazia, said during the launch event in Berlin (via Reuters) that “The compact segment is the next frontier for electrification in Europe,” adding “We think this market has huge potential.”
Electrek’s Take
BYD is leading EV sales in China, and it’s not even close. The automaker is coming off its best sales week of the year with nearly 68,000 vehicles registered from May 5 to May 11, up 15% from the previous week.
To give you some perspective, Tesla delivered just 3,070 vehicles in China in the same week, down 69% from the same week in 2024.
Will the Dolphin Surf see the same demand in Europe? With competitive prices, range, and features, it could be BYD’s most important EV so far. It’s the brand’s 10th vehicle to launch in Europe, following the Sealion 07, a smart midsize electric SUV.
According to S&P Global Mobility, BYD’s sales could double in Europe this year to around 186,000. By 2029, that number could reach around 400,000. Although it’s not slated for European production, the report notes that the Dolphin Surf’s “pricing strategy ensures competitiveness in the EU even with tariffs.”
Will the BYD Dolphin Surf become a top-selling EV in Europe? Leave us a comment below and let us know your thoughts.
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The original Fiat Panda 4×4 was an 80s icon and early entry into the compact SUV movement. Today, the funky electric Panda Grande is still carrying that torch, but it’s clear that someone at Fiat wants to lean into the off-road segment just a bit harder – and that’s what this new Grande Panda 4×4 Manifesto is all about.
First shown during the Grande Panda Hybrid media drive, Fiat is calling the new 4×4 Grande Panda Manifesto concept “the direct heir of the Panda 4×4,” and hopes it can act as a reminder of the 1983 original’s efficient, off-road legacy.
The Grande Panda that debuted last year is available with either a 108 hp 1.2 liter gas engine or a 111 hp electric motor powering the front wheels. The 4×4 concept starts with that electric motor up front, but adds an “innovative” e-axle at the rear of the tiny grande crossover, fully delivering on the “4×4” promise of a powered rear axle despite the lack of a conventional/traditional driveshaft or transfer case.
For their part, Fiat’s people seem pretty proud of the new setup:
From a technical standpoint, the Grande Panda 4×4 concept is thought with an electrified innovative rear axle. This feature would enable the vehicle to deliver impressive performance in urban settings and on more demanding terrain. It’s a deliberate choice that underscores FIAT’s ongoing commitment to embracing increasingly sustainable and forward-looking technologies, all while preserving the adventurous spirit and everyday practicality that have always defined the Panda 4×4.
A lifted stance, more aggressive A/T tires, front-mounted accessory lights, steelie wheels, and the seemingly mandatory “overlander” roof rack make up the rest of the modifications. No word yet on the Manifesto’s performance or specs, but I imagine something not too far removed from the new Jeep Compass’ specs makes sense.
And I promise: Fiat really, really wants to build this thing. Watch this space for more announcements, specs, and (eventually) pricing information.
Electrek’s Take
As my aunt Mary would say, Stellantis needs to get down from that cloud and realize that Jeep is not, should, and will not ever be the high-end luxury brand it hopes it will be. Once it does, it can slap a seven-slot grille on this Grande Panda 4×4 Manifesto concept, throw in some removable doors and a folding canvas moonroof, re-brand it as a modern Willys for about $30K, and watch the money roll in.
Fight me.
Make it a cheap Jeep
SOURCE | IMAGES: Stallantis.
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