Patrick Lai’s Post

Stellantis is working with battery maker Contemporary Amperex Technology Co., Limited and other Chinese companies to create electric vehicles and batteries in Europe to compete with cheaper Chinese imports. Due to unfair subsidies from Beijing, the EU has imposed 38% tariffs on Chinese EV imports. Stellantis, which owns Fiat, Chrysler, and Jeep, wants to increase European output to avoid this duty while using cost-competitive Chinese players. CEO Carlos Tavares presented the approach at Stellantis' first investor day in Michigan on June 13. The #automaker will work with CATL on lithium iron phosphate batteries, which are cheap to create without rare metals. Many Chinese EVs are affordable due to LFP batteries. Stellantis will adapt its battery production plans to incorporate CATL's knowledge. Its joint venture with Mercedes-Benz and other partners planned to build lithium-ion battery facilities in Germany and Italy, but Stellantis is considering making LFP batteries instead. In the Netherlands, the international automaker partnered with Chinese EV #startup Leapmotor. Their joint venture may produce Leapmotor EVs at Stellantis facilities in Europe for sale in nine European nations, including Germany, in September. Stellantis alliances accompany rising EV price rivalry. “We recognize that [Chinese players] have a 30% cost-competitive edge against the Western world,” Tavares said. With less expensive Chinese EVs making their way into Europe, Stellantis worries it cannot compete solely using in-house technologies. Tavares questioned whether the new #tariff can correct the “magnitude of the gap” between European and Chinese players on cost competitiveness. Stellantis’ strategy “is about making sure that we are ourselves offensive and surfing the wave of the Chinese offensive,” he said. Due to its small Chinese presence, Stellantis has been able to explore these relationships. The carmaker sells 1% of its new #cars in China. BMW sells 32% of its new cars in China and exports Chinese EVs to Europe. It cannot move production to Europe without affecting its Chinese operations, unlike Stellantis. These agreements won't boost growth alone. Stellantis is on target to eliminate costs by EUR 5 billion (USD 5.39 billion) a year early in 2024. To share your startup story write us on - [email protected] #EV #China #Technology #Europe #Stellantis

Mexico Gets Cold Feet Over New Chinese EV Plant After Trump Win Officials fear provoking Trump if BYD gets clearance to build autos south of U.S. border In late 2023, BYD started looking for a Mexican site. Initially, executives thought it could make cars for the U.S. market, but they adjusted the plan to focus on Mexico amid escalating geopolitical tensions, according to people familiar with the plans. The company also believes the Mexican plant could share the Latin American market with the Brazil plant, they said. SHARE YOUR THOUGHTS How should Mexico and its North American trade partners address BYD’s plan to build a car factory in Mexico? MAMC: By signing a comprehensive Trade Agreement with China. For now, BYD is targeting Mexico with made-in-China exports. In May, BYD introduced its Shark plug-in hybrid pickup truck in Mexico. It was the first time the carmaker debuted a new model in a country other than China. BYD initially designed the vehicle for the U.S. market, starting in late 2019, and surveyed American dealers to guide its design and technology, said people familiar with the project. They said they feared Mexico was a poor substitute for the U.S. because few Mexicans can afford the truck’s sticker price of $53,000 and up. And BYD’s path to sell inexpensive imported EVs to Mexicans is growing more difficult after the government recently reintroduced tariffs ranging from 15% to 20% on EVs made in countries with which it doesn’t have a free-trade deal. One such country: China. https://lnkd.in/gb9c7Bnu

NIO, a leading Chinese manufacturer of EVs known for its swappable battery packs, is reportedly mulling an acquisition of Volkswagen Group's AUDI AG Vorst manufacturing facility near Brussels. Volkswagen has decided not to build any more cars in Vorst when the last Audi Q8 e-tron electric SUV rolls off the line next year. Finding a buyer for the plant is the only remaining alternative to the increasingly inevitable closure. If the plant closes, some 2,910 workers will also lose their jobs. Takeaways: NIO is one of several Chinese brands eyeing expansion in Europe against the backdrop of proposed proposed tariff increases on EVs from China by the EU. NIO currently faces a 20.8% tariff, on top of the original 10% levy should the additional tariffs be approved by EU members in September 25th vote. Securing EU manufacturing in Belgium would enable NIO to make vehicles in Europe for local markets, avoiding steep import taxes. Other Chinese auto manufacturers are already leveraging local production to avoid tariffs. For example, Leapmotor is reportedly using the facilities of its JV partner, Stellantis, in Poland to produce cars for the EU market. Given that 1/3 of the EUs major passenger car plants are running at half capacity or less, acquisitions by Asian OEMs looking to access the EU market represent a great opportunity to secure European jobs and give consumers access to affordable EVs. Reference Shelf: Bloomberg - https://lnkd.in/gQ_YtiTE CNEV - https://lnkd.in/gawJDNFm #EV #batteries #EU #China

[WSJ] “Trump earlier threatened to impose a 200% tariff on Chinese companies’ cars if they are manufactured in Mexico. Mexico’s concern over Chinese investment is another example of how Trump’s election is already forcing governments and companies to rethink their strategies. Canadian officials are trying to isolate Mexico to align themselves more closely with Trump. BYD has long dreamed of bringing its vehicles to the U.S. as Asian carmakers such as Toyota and Hyundai did before it. But each possible avenue has run into barriers. Exporting from China is nearly impossible after the Biden administration imposed roughly 100% tariffson Chinese-made EVs this year. Trying to build a passenger-car plant in the U.S. like those of Japanese and South Korean automakers would undoubtedly meet stiff resistance, given anti-China sentiment in the U.S. BYD has had an electric bus factory in Lancaster, Calif., for a decade, and it is North America’s largest electric-bus manufacturer, with annual production capacity of about 1,500 vehicles. But that area is less politically sensitive than cars sold to consumers.”

Today the European Commission shared the draft decision to impose definitive duties on imports of battery electric cars from China. Tesla reaps benefits as EU cuts planned tariffs on Chinese-made electric vehicles. Tesla will face the lowest rate of 9%, but Chinese companies will have to pay rates of up to 36.3% 🚗 Tesla 9% from 20.8% 🚗 BYD: 17% from 17.4% 🚗 GEELY: 19.3% from 20% 🚗 SAIC: 36.3% from 37.4% Other cooperating firms: 21.3% from 20.8% Other non-cooperating firms: 36.3% #tesla #electricvehicles #evtechnology #byd #tarriffs #EU #China #automation #gigafactory

🚨 **BREAKING NEWS** 🚨 🌐 **CHINA IS INVADING MEXICO!** 🌐 China plans to utilize the existing USMCA agreement to avoid import taxes and sell their new EV cars in the US. Here's how: ⚙️ The USMCA deal requires 75% of a vehicle to be made in North America. Guess what? Mexico is part of North America! 🇲🇽 🚗 China's EV, currently sold for less than $10,000, could soon be manufactured in Mexico! With Mexico needing jobs, they're unlikely to turn down China's offer to build state-of-the-art EV manufacturing plants. 💼 This means China's EVs can legally cross the border tax-free under USMCA rules, flooding the US market. 🌍 Mexico is poised to join India as a major provider of low-cost labor and profit-inducing manufacturing in the global supply chain. 📖 **Read more in this article below and see how it's happening now.** 🔍 **Still don't believe me?** I called it two years ago! 🌟 **Follow my page for more insights and updates!** 📨 **Contact me for more information!** #GlobalLogistics #USMCA #Mexico #China #EVManufacturing #SupplyChain #TradeAgreements #LogisticsNews #Manufacturing #NorthAmerica #Economy #ImportExport #AutoIndustry #JobMarket #SupplyChainManagement #LinkedInNews #IndustryUpdates #Innovation #GlobalTrade Let's stay connected and keep the conversation going! 🚀

I must buy popcorn :) The fun continues in the electric car market. The Stellantis-Leapmotor EV joint venture has been formed. AND...the new joint venture comes amid rising trade tensions between China and the European Union, which is investigating whether Chinese electric car makers are benefiting from unfair government subsidies. Stellantis appears to see opportunities in Chinese government subsidies rather than unfair competition :). The joint venture will grant Stellantis the exclusive right to manufacture, export and sell Leapmotor products outside of China, the first such right to be granted to a western automaker. Stellantis will own 51% of the Netherlands-based joint venture, which will help the automaker expand its low-cost EA offering in Europe. Looks very good. The joint venture aims to generate 500,000 sales outside of China by 2030, according to Stellantis' third-quarter presentation released on Oct. 31. https://lnkd.in/guKXxrdt

💥 Today, European Commission pre-disclosed provisional duties on subsidised imports of battery electric vehicles (#BEVs) from #China 🔋 🚗 👉 BYD: 17,4% (2023 exports to EU: 13,500 BEVs) 👉 Geely: 20% (2023 exports to EU: 264,300 BEVs) 👉 SAIC: 38,1% (2023 exports to EU: 152,700 BEVs) 🚨 All other BEV manufacturers in China will pay 21% or 38,1% depending on whether they cooperated during the investigation, except ... 🥁 Tesla! Who asked for an individual duty calculation (2023 exports to the EU: 278,300 BEVs). The other manufacturers can also request this. ✒ These duties will go on top of the regular 10% import duty on all BEVs (FYI, China has its own import duty of 15% on BEVs). 🚀 This means almost 50% for SAIC, 30% for Geely (owner of Volvo), but only 27% for BYD - well below the 50% suggested by Rhodium Group for vertically integrated and highly cost-competitive companies like BYD. 💡 If you're interested in excellent insights on Chinese EVs, I highly suggest following Gregor Sebastian from Rhodium Group and Fernando Martín, Angelo Kruger & Simon J. Evenett from Global Trade Alert. More info on the EC duties here: https://lnkd.in/eyDH-UAh #subsidies #competition #trade

😎🚗🚚11/21/2024: OICA's 5 major #automotive news summarized: ### **French Automotive Suppliers Expand in U.S. Amid European Decline**   **Le Figaro – November 21, 2024**   French suppliers OPmobility and FORVIA are focusing on North #America, citing higher margins and fewer regulations. OPmobility plans new U.S. plants, while Forvia strengthens its Mexican operations. Both aim to capitalize on the growing EV market, though potential U.S. tariffs on European imports could impact their strategies.   [Read more](https://lnkd.in/euhf3txW)  ### **Northvolt Files for Bankruptcy as Cash Drops to $30 Million**   **Bloomberg – November 22, 2024**   Northvolt AB filed for Chapter 11 bankruptcy in the U.S. due to $5.84 billion in debt and $30 million in cash reserves. The company seeks $900 million to sustain operations and restructure. Volkswagen Group and Scania Group provided emergency financing, but Northvolt faces competitive and operational challenges, jeopardizing Europe's battery ambitions.   [Read more](https://lnkd.in/ep6uRuwY) ### **Next Hyundai CEO Muñoz Focuses on Hybrid Vehicles and U.S. Growth**   **Automotive News – November 22, 2024**   Jose Muñoz, Hyundai Motor Company (현대자동차)’s incoming global CEO, plans to expand hybrid production, with 30-40% of U.S. sales by 2030. Hyundai will launch hybrid models from its Georgia Metaplant by 2026, complementing its multipath strategy including EVs and hydrogen. U.S. sales reached record highs, reflecting Muñoz’s focus on market adaptability and innovation.   [Read more](https://lnkd.in/ehdzkr7b) ### **Stellantis Considers Shifting Mexican Manufacturing Amid U.S. Tariff Threats**   **Bloomberg – November 22, 2024**   Stellantis is reassessing its #Mexico operations in light of potential tariffs from President-elect Trump. The company’s Saltillo plant expansion for Ram 1500 trucks faces uncertainty. Stellantis remains flexible, but the possible removal of the $7,500 EV tax credit could disrupt its electric vehicle rollout plans, including the RamEV.   [Read more](https://lnkd.in/e-xrtgfT) ### **Nissan to Restructure Thai Operations, Cutting 1,000 Jobs**   **Nikkei – November 22, 2024**   Nissan Motor Corporation plans to consolidate operations in #Thailand, cutting 1,000 jobs and closing a plant near Bangkok by 2025. Declining sales and growing competition from Chinese brands BYD and MG prompted the restructuring. Nissan’s global efforts include a 20% reduction in production capacity as it faces a 94% profit drop in 2024.   [Read more](https://lnkd.in/e3scyZNC)

EXCERPTS: CATL and Stellantis will build a €4.1bn lithium battery factory in Spain, expanding China’s manufacturing footprint on European soil and boosting the European carmaker’s pivot to electric vehicles. Europe has tried to reduce its reliance on Chinese batteries by investing in developing the technology. But those efforts have stumbled, with its biggest battery hope Northvolt filing for Chapter 11 bankruptcy in the US. After winding down its ventures in China, the European carmaker took a 20 per cent stake in Chinese start-up Leapmotor for €1.5bn, giving it exclusive rights to build and sell Leapmotor cars outside China through a joint venture. Leapmotor in turn uses a Stellantis plant in Poland to produce its T03 compact EV so that the company can avoid the EU’s higher tariffs on imports of Chinese EVs. The Spanish factory is CATL’s third big investment in Europe. It is already operating plants in Germany and Hungary. The Chinese group, which is a key Tesla supplier, has been working to expand in Europe as tensions between Beijing and Washington threaten its growth plans in North America.