AD #3839 - China to EU, Drop Tariffs…Or Else; China Car Exports Up 26% In 2024; Ford, Rivian and Hyundai EVs Tackle Pikes Peak

This is Underligning Daily, the show dedicated to enthusiasts of the global automotive industry.

China is tightening the screws on the European Union. It's demanding that the

EU drop all proposed extra tariffs on Chinese made cars by July fourth, or else. That or else includes threats of higher tariffs on European cars sold in

China, as well as higher tariffs on European pork, dairy products, and French cognac. But China is also dangling a carrot for the German automakers.

It says it will cut the fifteen percent tariff on imported cars with gasoline engines two and a half liters are bigger if Germany can get the EU to drop the tariffs. The country already opposes additional tariffs on Chinese goods because it exports

so much to China and does not want to be the victim of any Chinese retaliation. So China is trying to get Germany to do more to stop the

tariffs. One thing's for sure, This trade dispute is going to go on

all year long, and it runs the danger of breaking out into a full blown trade war. And that trade war may not end at the borders of

Europe. That China Passenger Car Association reports that Chinese automakers exported two point four

five million vehicles globally in the first five months of the year, up twenty six percent compared to last year. Most of those cars went to Russia,

more than three hundred and seventy two thousand, five hundred of them. That's

nearly two hundred thousand more than went to Mexico, which was the second largest destination for Chinese exports. And while Russia and China are expressing solidarity on the

geopolitical front, Russian car dealers are fed up with the Chinese car companies.

The six largest Chinese car companies now control forty three percent of the Russian car market, and Russian auto dealers say the Chinese are taking advantage of them.

They've even filed a complaint with Russia's anti monopoly agency. They accuse the automakers

of not providing technical service and support and forcing them to buy more cars than they can sell. The dealers say if they don't meet sales targets, they

lose sales bonuses or even have their franchise contract voided. They also complain they're

not paid enough for warranty claims and that some Chinese automakers force them to sell non automotive products like bicycles. But Russian car dealers aren't the only ones that

have it bad. That cyber attack on CDK, a company that handles car

dealer management systems in the US, is wreaking havoc across the industry. Up

to fifteen thousand dealers have seen their businesses disrupted and have literally resorted to using pen and paper to keep track of sales, pairs and service orders. Bloomberg

reports that CDK is ready to pay millions of dollars to unlocket system to the hacker group that's taking responsibility for the attack. The hackers are reportedly operating out

of Eastern Europe. Dealer Management Systems or dms's generate sales leads handle trade ins,

car loans, and vehicle registration. They order replacement parts and schedule service

appointments, so the impact is enormous. CDK transacts two point six percent of

the US GDP. According to Automotive News, BOSH generated more money from its

global automotive sales than any other supplier last year. It brought in nearly fifty

six billion dollars in twenty twenty three, which was about six billion dollars more than ZF in second place. Magna is in third at nearly forty three billion

dollars, and then comes the biggest prize on the list to me. CATL,

the biggest battery maker in the world, generated over forty one billion dollars in sales last year. Denso Yndai, Mobis, Asin, Continental for Via,

and Lear round out the rest of the top ten. There's nothing wrong

with heavy metal, hey light enough, but with world class composit material taging automotive technologies makes vehicles lighter, safer, and more eco friendly. Eves took

center stage at this weekend's Pike's Peak Hill Climb in Colorado, with Ford sixteen hundred horsepower Lightning super Truck setting the fastest overall time of just over eight minutes and fifty three seconds. In fact, it was the only vehicle to go

sub nine minutes, but it ended up being about six seconds slower than last year's Supervan because of a an unexpected power loss that required it to come to a complete stop and reboot that added about twenty six seconds over the super truck's qualifying time. Even so, it would still be about thirty seconds off the

sub eight minute record time set in twenty eighteen by the VWIDR. Hyundai also

had a good day, running in both the modified and unmodified categories with the Ionic five n It set the electric production vehicle record with the unmodified five n AD just under ten minutes in fifty seconds, which only missed the production SUV record set by the Bentley Benega by less than half a second. However,

it did beat out a quad motor Gen two Rivian R one T which had shortly before claimed the production EV record with a time over ten minutes and fifty three seconds. But that's still half a second faster than last year's truck,

and it gives it the record for fastest production pickup. Hyundai's other five ends

set the record for fastest modified EV up Pike's peak at over nine minutes in thirty seconds. We've got more details on the E building where Ferrari will make

its first EV that launches late next year. Not only will it make that

electric car, which reportedly costs over five hundred thousand euros, but pure cees and hybrids as well. It also dedicated an area to develop and produce powertrains

for all of those models, and it will make high voltage batteries and e axles. Two. Ferrari says the building will be powered entirely by renewable energy,

which will significantly reduce its CO two emissions. Race fans could be treated

to a much better viewing experience as media companies are working on using generative AI to produce personalized broadcasts. Formula one is working with am on web services to

provide television viewers with customized coverage, all with the idea of keeping viewers glued to the race longer. AWS already helps predict when one driver will catch another

based on how the cars are performing and how the tires are degrading, but now fans will be able to choose what kind of data trivia in stories they want to watch. Though the F one series is getting more competitive, some

of the races have been real snoozefests thanks to the domination of Max Verstopen and the Red Bull F one team, So a personalized viewing experience could keep fans more engaged even when a race is being taken over by one driver. The

competition in the Chinese car market is becoming so intense the car executives are turning to live streaming as a way to connect with potential customers. Bloomberg reports that

it's not just execs from EVI startups participation in the live streams. Senior execs

from China's traditional state owned brands are now doing so too. The live streams

attract younger customers and allow companies to interact directly with car buyers and show off of cars technology and performance, and one way execs are doing that is taking their vehicles on road trips. Joe me Ceo, for example, showed off

the company's driver assistance features in a three and a half hour live stream in May that racked up thirty nine million views, and Neo's founder has grown his follower base on Weibo to six hundred thousand people thanks to his live stream road trips that started in March. That brings us to the end of today's show.

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AD #3839 - China to EU, Drop Tariffs…Or Else; China Car Exports Up 26% In 2024; Ford, Rivian and Hyundai EVs Tackle Pikes Peak

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