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AD #3892 - Russia May Hike Tariffs on Chinese Cars; EU OEMs Want To Delay 2025 Emission Targets; Used EV Prices Down 25%

Autoline Daily Sep 13, 2024 11 min

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About this episode

Tariffs on Chinese EVs and automotive imports are rising globally, with the US, Europe, Canada, and potentially Russia imposing higher duties to protect domestic industries. This impacts supply chains and prompts automakers like GM to seek US-made battery sources. European OEMs are lobbying to delay stringent 2025 emission targets due to production challenges and potential fines. Meanwhile, used EV prices in the US have dropped sharply, outpacing declines in gas and hybrid vehicles. The episode also covers Chinese automakers expanding internationally, GM's fast-charging network plans, and Volvo exiting its vehicle subscription service.

Topics: chinese import tariffs us ev battery production european emission targets used ev prices russian auto market chinese automaker expansion gm ev charging network vehicle subscription services automotive industry lobbying ev market trends

- U.S. Locks in Chinese Tariff Hikes - GM to Buy EV Batteries Made in U.S. With CATL Technology - Russia May Impose New Tariffs on Chinese Cars - Chinese Automakers Continue Global Expansion - EU OEMs Want Two-Year Delay For 2025 Emission Targets - Driving and Congestion Increase in The U.S. - GM and EVgo Plan More Public Fast Chargers - Volvo Gets Out of Car Subscription Business - Used EV Prices Down 25%

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Speaker 1: This is underligned Daily, the show dedicated to enthusiasts of the global automotive industry. The US is sticking to most

of the strict new tariffs that it proposed on Chinese imports.

That includes a one hundred percent tariff on Chinese evs, fifty percent on solar cells, and twenty five percent on steel aluminum, EV batteries and key battery materials. This will

all be on top of an existing two and a half percent import tariff on all goods. The new rates

lock in on the twenty seventh of this month, and Reuter's reports that a fifty percent duty on Chinese semiconductors goes into effect at the beginning of next year as well.

China responded to tariff hikes in Europe by imposing its own import increases on certain European goods, so some sort of retaliation against the US is highly likely. But the

increase on batteries, battery materials, and semiconductors will also impact most automakers that sell cars in the US, since so many of their current and future evs, including their software, rely on Chinese tech. That's probably part of the reason

General Motors is in talks to buy ev batteries produced in the US from caatl Tech. Bloomberg reports that Japanese

consumer electronics company TDK would actually fund and operate the plant, which is expected to be located in the south and create a thousand jobs. TDK would license the battery tech

from CTL to make LFP batteries, and then GM would buy the batteries at a fixed price over a long term contract, but it wouldn't have a stake in the venture.

Nothing is official yet and the companies declined to comment on the speculation. But this is similar to the deals

the Chinese battery maker has with Ford in Tesla. Now

back to Chinese import tariffs because more countries could jump on the bandwagon. There's the US in Europe, Canada looks

like it's going to follow a similar path as the US, and now also Russia could impose new Chinese import tariffs.

Not too long after Russia's invasion of Ukraine, all Western automakers completely pulled their operations from the country, which crippled Russian auto production and as a result, sales two. So

Russia welcomed Chinese imports with open arms, and sales took off.

It's hard to find exact numbers, but several brands, including Cherry, Geely and great Wall have all sold several hundreds of thousands of vehicles so far this year in Russia. But

now that there's no shortage of cars on the market, domestic automakers say it's not competitive for them to produce cars, so at the beginning of October it's raising a fian car imports depending on the size of the engine, and it's also considering a tariff on Chinese imports. It's all

about trying to get them to produce vehicles in Russia, and it could work to some degree. Byd opened its

first plant in Thailand in July, and according to reports, it's moving ahead with its plant in Turkey despite warnings from China about quote geopolitical risks of overseas investments. But

we're more likely to see more of what Chinese automakers have already been doing, expanding, expanding, expanding. Great Wall just

introduced a new hybrid pickup in South Africa that it also plans to sell globally, probably in other strong truck markets like Australia and Mexico. Speaking of Mexico, Neda has

signed partnerships to start selling its vehicles in the country before the end of the year. Jili is also launching

an electric suv in Norway, Australia, Thailand, Indonesia and other markets.

The same model has a roughly sixteen thousand dollars or fourteen teen thousand, four hundred euros starting price in China, but that will be significantly higher by the time it's shipped.

And lastly, Seic is taking one of its Baojian models, slapping some MG badges on it and selling it in India.

Speaker 2: Performance that shines even in the rain, That's what really matters.

Rich don't pretends to tires, improved grip and wet conditions.

Speaker 1: As we reported earlier in the week, European automakers could be fined fifteen billion euros next year for missing CO two targets. That's according to Luca DeMeo, the CEO of

Renault and the president of the European Automobile Manufacturers Association or ACEA, a group that represents most automakers in Europe.

And now Bloomberg reports that the ACEA is con entering lobbying for a two year delay of the EU's twenty twenty five emission targets. Next year, vehicle emissions must average

ninety five grams per kilometer, down from one hundred and sixteen this year, but the Acea figures automakers would have to cut production by two million vehicles just to meet that target, and it says that van manufacturers face fines of three billion euros next year as well. In order

to meet targets, ev sales need to be in the twenty to twenty two percent range, but they're currently below fifteen percent, so more time would save money and jobs.

Vehicle travel plunged in the US during the COVID pandemic, but now it's higher than before people started locking themselves inside.

According to street Light Data, a transportation analytics firm, total miles driven in the US increase twelve percent from twenty nineteen to May of this year. Of the one hundred

largest metro areas in the country, only ten saw a decrease in vehicle miles traveled compared to twenty nineteen levels.

New York City saw the biggest increase in average daily vehicle miles traveled at nearly fifteen percent, but more cars means congestion is also getting worse. Only six metro areas

saw a decrease in congestion compared to twenty nineteen. GM

is expanding its partnership with Evygo to build more public fast chargers across the US. The companies will install four

hundred fast chargers at what they call flagship stations, which will be located near shopping centers and dining spots and busier areas. Each station will feature up to twenty stalls,

and it says they'll have plenty of lighting, as well as canopies and security cameras. The first location is expected

to open next year. These flagship sites are part of

a total of two thousand, eight hundred and fifty fast chargers that GM and evy goh plan to build in the US, and they expect to have two thousand by the end of the year. Valvo is getting out of

the vehicle subscription business in both the US and Europe.

Automotive News reports that the company is transferring its care by Volvo service in Germany, the Netherlands, Sweden, and Norway to new financial providers, while phasing it out in the UK, and the service will no longer be offered in the forty US states where it was available. Launched in twenty seventeen.

Care by Volvo charged a monthly fee that included all the maintenance, insurance, roadside assistants, and other services. As of

last year, the program had around sixty five hundred customers in Europe. Valvo didn't say how many customers it had

in the US, but it did say that eighty percent of them were new to the brand. Other luxury brands

like Cadillac, Portie, BMW, Mercedes, and Lincoln have also tried out cars subscriptions, with mixed results. Prices of used evs

continues to tumble in the US. According to IC Cars,

the averaged used EV sold for just under twenty seven thousand dollars in August, down from more than thirty five thousand dollars a year ago, or a twenty five percent drop in price. That compares to a four percent decrease

for used gas vehicles and a six percent decline for hybrids.

The average used gas and hybrid vehicle now costs about thirty thousand dollars on average, so it's more than a used EV. The Tesla Model Iree saw the biggest percentage

drop amongst all used cars, selling for just under twenty six thousand dollars on average, a price drop of about eighty five hundred bucks or twenty five percent less than a year ago. And that brings us to the end

of today's show. Thanks for making autoline a part of

your day and I hope that you have a great weekend.

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Speaker 5: Electric vehicle comedy.

Speaker 7: Forget the political noise. Evs mean good American jobs. Tens

of thousands of manufacturing jobs right here right now in Michigan and more on the way with billions in new investments.

Want those jobs in China instead?

Speaker 6: We don't.

Speaker 7: We're the American EV Jobs Alliance. We say electric vehicles

are a big part of the future, and we want those jobs in America. So remember when politicians bash EV

America loses paid for by the American EV Jobs Alliance.

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