BYD has no plans to launch EVs in the US, says the market is too confusing for buyers
According to BYD executive vice president and CEO of BYD Americas, Stella Li, the Chinese automaker has no plans to sell passenger EVs in the US. The leader called the market “interesting” but too complicated due to conflicting politics.
Li sat down for an interview with Yahoo Finance Anchor Akiki Fujita to discuss the global EV market.
After confirming that BYD will officially announce a new manufacturing facility in Mexico, likely in the second half of the year, Li shut down rumors the automaker was planning to enter the US.
Earlier this month, the head of BYD Mexico, Zhou Zou, told Nikkei the automaker was considering building a plant in the country. Zou said overseas production is critical, and Mexico has significant potential.
The comments sparked speculation that the automaker would use the facility as an export hub to the US.
Li confirmed BYD is not planning to launch EVs in the US. She said the Mexico facility will “only mainly support the Mexican market.” Li explained, “We’re not planning to come to the US.”
BYD has no plans to launch EVs in the US
When asked why not, Li responded, “It’s too complicated.” Although Li called the US “an interesting market,” it’s “very complicated if you’re talking about EVs.”
Li added she believes the “US market is a little bit slow down on electrification and a lot of confusing.” When asked if politics play a role, Li explained, “Everything is complicated. Politics complicate,” and it’s confusing for buyers, “they don’t know which to choose.”
Clarifying her comments about confused consumers, Li said, “Here in the US is you have too many confusing noise, speech from different politic. This can bring a lot of confusing to consumer, and also to auto manufacturers. They are not eager to invest.”
The comments come after US automakers Ford and GM recently pushed back EV initiatives. Li said, in China the message is strong. She added:
If you are not investing for electric car, you are out. You will die. You have no future.
Li compares the Inflation Reduction Act in the US to China’s success with EVs. China has around 35% EV share while the US is about 7%. Li says this is because of restrictions with the IRA designed to promote domestic investments.
BYD’s America’s boss said automakers are overreacting to electric cars and are “a little bit too scared about a kind of Chinese competition.” Li said automakers need to participate, or they’ll be left behind in the global market.
The interview comes after BYD declared a price war on gas-powered vehicles, launching its cheapest EV, the Dolphin EV Honor Edition, starting under $14,000.
BYD is taking on new markets with the launch of the Yangwang U9 electric supercar this week. Starting at $233,000, the U9 will rival Ferrari and Lamborghini as BYD expands into the luxury segment.
The Chinese automaker’s first car transport vessel, the BYD Explorer No 1, docked in Germany Tuesday carrying 3,000 cars as the brand expands overseas.
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Environment
NIO shares details of its third brand, ‘Firefly,’ and its first EV, ahead of a full launch next month
NIO executives shared details of the Chinese automaker’s third EV brand, Firefly, as well as what the new marque will call its first model. The news comes about one month before Firefly officially launches in China during its parent company’s 10th annual NIO Day event.
Firefly is a new affordable boutique EV brand spun out by Chinese automaker NIO. We’ve been awaiting the marque’s official launch for years after NIO divulged plans for two new all-electric sub-brands in the works. The first was codenamed “Alps” and was scheduled to launch in mid-2024 in China and Europe.
Alps would officially become known as Onvo, which recently hit the market this year, beginning with its L60 SUV as a viable competitor to the Tesla Model Y.
In addition to “Alps” or Onvo news, there were rumblings about a third NIO EV sub-brand, codenamed “Himalaya” but also called “Firefly.” In December 2023, NIO’s president confirmed the even more affordable EV sub-brand would join Onvo in China in 2024, followed by entry into European markets in 2025.
Even with tariffs being imposed on Chinese-built EVs entering the EU, NIO conveyed confidence in its new Firefly marque as the automaker’s co-founder and president Qin Lihong shared that the new models will be priced between RMB 100,000 ($13,800) and RMB 200,000 ($27,500).
Up until now, we’ve only seen camouflaged images of what a Firefly BEV might look like as we await the anticipated launch, which we learned is coming on December 21, 2024, during the automaker’s tenth annual NIO Day event.
Today, however, we’ve learned the name of the first Firefly model and when NIO expects to begin delivering it to customers.
NIO’s first Firefly EV model will adopt the same name
Following the posting of NIO’s Q3 2024 financial results, the automaker’s executives completed an earnings call, which offered some new details about the Firefly EV brand. The company confirmed that NIO’s third EV brand will adopt the Firefly codename used internally in the past years.
Furthermore, NIO confirmed the first EV model under the new brand will be called the Firefly as well, describing the new marque as a symbol of NIO’s innovation and sophistication, but in a smaller package.
NIO also said its Firefly EVs will exceed customer expectations in design, safety, space, intelligence, and energy efficiency. Additionally, NIO executives shared plans for a new product cycle that will include deliveries under both its Onvo and Firefly brands, enabling faster global growth.
Per NIO, the Firefly EV from Firefly will begin deliveries in China in the first half of 2025, with future expansions to other markets to follow. We will get our first look at the new model and (hopefully) learn what it will cost during NIO’s tenth annual NIO Day event on December 21. The company is already teasing the event, which usually includes new product debuts and other exciting developments. Per the NIO Weibo page:
Today, the prelude to NIO’s 10th anniversary and NIO Day 2024 has officially begun. With the theme of ‘Together & Further,’ we will continue to share with you the ten-year story of NIO and its users. At this year’s NIO Day, NIO’s third brand ‘FIREFLY Firefly’ will also be officially released, and will continue to adopt the ‘rechargeable, replaceable and upgradeable’ pure electric technology route.
That last part could be read as reassurance that NIO’s new EV sub-brand will continue to focus on BEVs only, despite previous reports that the Chinese automaker is working on an extended-range hybrid. NIO has publicly denied those reports. All eyes will be on NIO Day 2024 next month. Check back in with Electrek for a full recap.
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Gary Wang, a former executive of bankrupt cryptocurrency exchange FTX, who testified against founder Sam Bankman-Fried, attends his sentencing on fraud charges at the United States District Court in Manhattan in New York City, U.S., November 20, 2024.
Brendan Mcdermid | Reuters
Gary Wang, co-founder and ex-technology chief of FTX, was sentenced Wednesday to time served and three years of supervised release on each of the four counts he pled guilty to, becoming the fifth and final ex-employee of the collapsed crypto exchange to be punished. Wang was also ordered to forfeit $11 billion, the same as the other co-defendants.
Wang, who took the stand in the trial against his former boss Sam Bankman-Fried, faced a maximum sentence of 50 years for the four criminal counts he pleaded guilty to, including conspiracy to commit wire fraud, wire fraud, conspiracy to commit commodities fraud and conspiracy to commit securities fraud.
After FTX’s former engineering chief Nishad Singh successfully avoided prison time when he was sentenced by Judge Lewis Kaplan last month, Wang was seeking the same sentence citing his nearly immediate cooperation with the government.
When given the opportunity to address the court, Wang said he was deeply sorry to all the customers and investors in FTX.
“I took the easy path, the cowardly path, instead of doing the right thing,” Wang said in a short address to the court, as he clutched a single printed piece of paper that he never referenced from the podium.
“I will spend the rest of my life trying to make amends,” he added.
Wang’s parents, as well as his wife, who is expecting their first child, were in court to support him.
Attorneys for Wang say he didn’t have full visibility on the crimes, unlike the other cooperating witnesses, and didn’t know that FTX’s sister hedge fund Alameda Research was taking customer money until after the scheme was underway.
The government was also seeking leniency for Wang.
Assistant U.S. Attorney Nicolas Roos described Wang as the easiest cooperating witness he had ever worked with, and he credited Wang for essentially deciphering half of the case for the Government by meticulously unpacking the complicated code used by FTX that allowed for the customer money to be taken off the exchange.
In the sentencing submission, prosecutors added that since testifying against the former FTX CEO, Wang has “put his extraordinary computer programing skills to use in detecting potential fraud in the stock and cryptocurrency markets,” and has built an interface that the government has started using for detecting potential fraud by publicly traded companies.
In addition, “Wang has also been working on a tool for detection of potential illegal activity in cryptocurrency markets, which in the event Wang is sentenced to a period of time served, the Government understands he will complete as part of his ongoing cooperation.”
Roos also noted that Wang was the first FTX employee to walk through the government’s door but the last to be sentenced, as the FTX criminal proceedings come to a close.
In March, Bankman-Fried was sentenced to 25 years in prison and ordered to pay $11 billion — the harshest punishment from Judge Kaplan.
Alameda’s ex-CEO Caroline Ellison, who was the star witness in Bankman-Fried’s prosecution and his ex-girlfriend, was sentenced to two years in prison for her role in the crime. And Ryan Salame, another former top lieutenant of Bankman-Fried, was sentenced to seven and a half years in prison in May — beyond the upper limit recommended by prosecutors.
All FTX former executives have faced sentencing before Judge Kaplan. The no-nonsense 78-year-old judge is a veteran of the Southern District of New York and has presided over some of the biggest cases to roll through the courthouse at 500 Pearl Street in downtown Manhattan.
“I’ve never seen anything quite like what happened here,” Kaplan said of Wang’s cooperation. “You’re entitled to a lot of credit.”
Ford is slashing another 4,000 jobs in Europe as it struggles to keep pace with the market’s shift to electric vehicles (EVs). The American automaker said a “highly disruptive” EV market and new competition are causing significant losses in the region. Ford’s announcement comes as China’s leading EV maker, BYD, is quickly catching up in global deliveries.
Ford is cutting more jobs in Europe amid EV struggles
“Ford has been in Europe for more than 100 years,” the company’s European vice president for Transportation and Partnerships, Dave Johnston, said on Wednesday.
As the market shifts to EVs and new competition arises, Ford is fighting for its share. The company has incurred “significant losses” in recent years amid a “highly disruptive” influx of new EV challengers.
Ford plans to cut another 4,000 jobs in Europe by the end of 2027 as part of its restructuring. The company blamed the “weak economic situation” and “lower-than-expected” demand for electric cars.
The planned cuts will primarily affect Germany, but some will also affect the UK. Ford said in a press release that other European markets will see “minimal reductions. “
Ford is also slowing the output of its new electric Explorer and Capri, both of which were built at its revamped Cologne EV plant in Germany.
Last week, German newspaper Kölner Stadt-Anzeiger (via Automobilwoche) reported that the plant’s employees would be put on short-term work hours. A Ford spokesperson confirmed the move, citing a “rapidly deteriorating” EV market.
Ford confirmed the plans on Wednesday, saying it will result in short-term working days at the Cologne plant in the first quarter of 2025.
An urgent call to action
In a letter to the German government, Ford’s CFO, John Lawler, reiterated the company’s commitment to Europe and the 2035 emissions target. However, he also issued an urgent call to action for all stakeholders to work together to advance the transition. Lawler added:
What we lack in Europe and Germany is an unmistakable, clear policy agenda to advance e-mobility, such as public investments in charging infrastructure, meaningful incentives to help consumers make the shift to electrified vehicles, improving cost competitiveness for manufacturers, and greater flexibility in meeting CO2 compliance targets.
Despite the restructuring, Ford still wants to be a player in Europe. The next generation of Ford vehicles in Europe will be “software-defined” with a “differentiated” design.
The company will focus on its commercial Ford Pro business while competing in select passenger vehicle segments to drive profit growth.
Ford invested $2 billion into its Cologne plant to prepare it for EV production. After the first electric Explorer rolled off the assembly line in June, Ford added its second EV, the new Capri, just last month.
The American automaker has drastically downsized leadership in Germany this year. Earlier this month, Ford lost two of its most experienced leadership team members. It’s now down to two directors from nine earlier this year.
Electrek’s Take
Ford’s restructuring in Europe comes as EV leaders, like China’s BYD, continue gaining ground in the global auto market.
After dominating its home market, BYD and other Chinese EV makers are looking overseas to drive growth.
BYD is already a leading EV brand in key regions like Southeast Asia and Central and South America, but it expects sales to accelerate in the next few months. The EV giant opened its first manufacturing plant in Thailand earlier this year, and more are planned for Hungary, Brazil, Mexico, Pakistan, and Turkey.
According to Bloomberg, BYD is rapidly approaching Ford in global deliveries. Although BYD is best known for its low-cost EVs, like the Seagull, which starts at under $10,000 (69,800 yuan) in China, it’s quickly expanding into new segments like pickup trucks, mid-size SUVs, and luxury models.
Ford’s CEO Jim Farley warned rivals earlier this year that if they fail to keep up with the Chinese, “20% to 30% of your revenue is at risk.”
“As the CEO of a company that had trouble competing with the Japanese and the South Koreans, we have to fix this problem,” Farley said.
While Ford’s Model e EV unit is on track to lose between $5 billion and $5.5 billion this year, BYD just reported a record $1.6 billion (RMB 11.6 billion) in Q3 net income amid surging EV sales. October was BYD’s eighth straight record sales month, with over 500,000 passenger vehicles sold for the first time.
Ford is betting on smaller, more affordable EVs to turn things around with its new low-cost platform. The first EV model powered by the platform, a new electric truck, is due out in 2027.
Can Ford turn things around? Or will it be too little too late? Let us know your thoughts in the comments below.
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