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AD #4065 - Chevy Leaving the Chinese Market; German Automakers Expect U.S. Tariff Relief; Tesla Starts Human-Less Test Drives

AD #4065 - Chevy Leaving the Chinese Market; German Automakers Expect U.S. Tariff Relief; Tesla Starts Human-Less Test Drives

Autoline Daily May 29, 2025 9 min
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German automakers BMW, Mercedes, and Volkswagen are negotiating with the US for tariff relief tied to increased US investments and exports. China’s export restrictions on rare earth magnets threaten to halt Indian car production. Chevy is reportedly exiting the Chinese market after steep sales declines. Tesla is advancing robotaxi tests without drivers in Austin, aiming for a June launch. Toyota plans to expand its EV lineup in the US by 2027, while CATL rolls out swappable battery stations in China. GM partners with Samsung SDI and LG Energy to produce cost-effective LFP batteries in the US, supporting more affordable EVs.

Topics: us tariffs german automakers china rare earth export restrictions chevy china market exit tesla robotaxi testing toyota ev expansion swappable batteries gm lfp battery production electric vehicles india car production risks
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Speaker 1: This is Autolye Daily, the show dedicated to enthusiasts of the global automotive industry. Executives from several German automakers have
said they didn't think US tariffs would have a big impact on them, and it's unlikely they would say that without expecting some kind of relief, so it's not a total shock to see that Reuters is reporting BMW, Mercedes, and Volkswagen are negotiating with the US Department of Commerce over a possible trade deal. Sources say this would require
the automakers to make more investments in the US, like adding new models and shifts at plants, but they would also get credits for any cars that they export out of the US, which they could then use towards reducing the tariffs. BMW for many years has been the top
US auto exporder by volume, shipping nearly two hundred and twenty five thousand vehicles worth more than ten billion dollars around the world last year, so going after a trade deal that benefits exports could help out the German automakers more than it would another company. Car production in India
could come to a screeching halt in the next few days because China is restricting exports of rare earth magnets.
The China move is in response to Trump's tariffs, but they're impacting automakers globally. In addition to electric motors, the
magnets are needed for parts like power windows and speakers, and the Society of Indian Automobile Manufacturers, a group that represents automakers, is warning that inventories at parts suppliers.
Speaker 2: Will run out at the end of the month.
Speaker 1: Automakers are urging the Indian government to reach a deal with China, which controls ninety percent of global processing of rare earth magnets. So that's why if a deal can't
be reached, car production in India will soon come to a grinding halt. Fox Khn says it's next Japanese partner.
Speaker 2: Is quote almost ready to be announced.
Speaker 1: Earlier this month that signed an understanding to supply Mitsubishi with an electric vehicle, and now it's chairman says we'll soon know what Japanese automaker it's working with next. While
he didn't say who, we think it's Nissan because Fox Khan expressed interest in taking a stake in Nissan in the past, as well as Nissan's new restructuring plan, which requires slashing billions of dollars of cost. Fox Khan SE's
working with Japanese automakers as an opportunity to grow its Evy business. You know, we've said it before as recently
as yesterday, and we'll say it again. There's too many
car brands in China and some need to go. It
looks like that's about to happen, but it might be a brand you didn't expect. Car News China reports that
Chevy has delayed all new projects indefinitely, and any product currently on sale is headed for the end of production.
In twenty eighteen, Chevy sold over six hundred and forty thousand cars in China, but in the first quarter of this.
Speaker 2: Year it only sold a little over fifty.
Speaker 1: Three hundred cars, a drop of nearly seventy six percent compared to a year ago. So it's easy to see
why reports say Chevy is leaving the market. A general
manager for parent company SAICGM called the story a fake rumor and said, quote, we will not give up Chevrolet, but sources say that really means we will not give up on Chevrolet's existing customers, like for vehicle service.
Speaker 3: There's nothing wrong with heavy metal. Hey, light enough, but
with world class composite material Tagent Automotive Technologies makes vehicles lighter, safer, and more eco friendly.
Speaker 1: Hey there, enjoy what you're watching, then consider becoming an Autoline member. Just click the join button on the Autoline
Network YouTube homepage or we've also set up a Patreon account under Autoline now. Absolutely nothing will change with the
content that we already provide you, but we're giving exclusive access to even more, like early viewing of Autoline exclusives, behind the scenes videos, and even live Q and a's with John and I. Elon Musk said that Tesla is
going to launch its robotaxi service in Austin, Texas next month.
Speaker 2: Bloomberg claims the company.
Speaker 1: Is specifically aiming for June twelfth, and now it's finally getting to testing without a human driver in the driver's seat.
Musk says Tesla has been running self driving model wise around public streets in Austin for the last several days, which he claims is a month that had a schedule.
The company is initially expected to have a fleet of ten to twenty cars that will be monitored and sometimes operated remotely by a human. Elon also says that a
self driving Tesla will deliver itself to a customer for the first time next month as well. Toyota has been
criticized for appearing to drag its feet on the EV transition.
Last year, it sold fewer than thirty thousand BEVs in the US, but that could soon change. Bloomberg reports that
Toyota will have seven fully electric models on sale by mid twenty twenty seven, including Lexus. The brands currently have
two EV models available. Three more imported evs go on
sale in the coming months, and next year, Toyota will produce two.
Speaker 2: New evs in the US, and if EV.
Speaker 1: Sales don't grow as expected, Toyota says it will just export the models it builds in the US, and the new evs put the automaker on track to reach its goal of offering an electrified version of every mind it sells globally by the end of this year. The first
Eves with CTL's Choco swappable batteries were delivered to a taxi company in China. The vehicle is the o Shan
five twenty sedan from Changan, which recently delivered a thousand examples for the taxi service, and in addition to Changan, automakers including GAC FAW SEIC, BAIC, SEICGM Wooling, and Neo have all signed up to use CATL swappable batteries. The
battery maker has opened thirty four locations in chang King, the first city to adopt the swap stations, and sixteen more will open in the city by the end of the year. Each station can store up to thirty batteries
and they can be swapped in just.
Speaker 2: One hundred seconds.
Speaker 1: And speaking of batteries, the Korea Economic Daily reports that Samsung, SDI and LG Energy Solution are gonna build LFP batteries in the US for general motors. The two battery makers
currently produce NMC or nickel manganese cobalt packs for GM.
Samsung will retrofit its plant in Indiana to produce LFP batteries starting in twenty twenty seven, and LG Energy will convert production lines at its plants in Tennessee and Ohio.
The plants currently make pouch NMC batteries, but GM is considering switching to prismatic cells, which are structurally better for LFP batteries. The change is part of GM's strategy to
offer more affordable evs and according to industry experts, LFP batteries cut costs and estimated twenty to thirty percent or around six thousand dollars per vehicle compared to NMC batteries.
And a quick reminder to tune into Autoline after hours.
Today will have Warren Brown of RFQ Insights and Joe White of the High Speed Rodeo to talk about tariff impact on US production, employment, prices, sales, and what plants are at risk of closing down. Plus will get to
much more. So join John and Gary when the show
goes live at three pm Eastern Time today. But that
brings us to the end of today's show and I hope to see you later today.
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