AD #4085 - GM Gains Most Market Share This Year; Japan Says It Can't Accept U.S. Tariffs; U.S. Exports to China Plummet
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Speaker 1: This is aut Aligned Daily, the show dedicated to enthusiasts of the global automotive industry. Automakers are heavily criticizing the
National Highway Traffic Safety Administration, or NITZA, and say that the administration is stifling innovation and needs to modernize. The
US House of Representatives as holding a hearing today where the Alliance of Automotive Innovation, a lobbying group that represents most automakers in the US, will provide testimony that says NITSA needs to reform and lists dozens of regulations that need to be repealed, revised, or updated. The Alliance is
upset that there is no federal framework for autonomous vehicle standards despite years of dialogue. The group also wants NITZA
to roll back fuel economy targets starting in twenty twenty seven, saying they aren't aligned with consumer demand. But it's not
just automakers that are upset with the administration, so are safety advocates. The Insurance Institute for Highway Safety will also
testify in Congress today criticizing NITZA for a lack of urgency and using flawed methodologies that underestimate safety benefits. The
US car market is no longer growing its hit peak auto.
In fact, thanks to the tariffs, new car sales are sure to be lower this year, and that makes the battle for market share more critical than ever. In a
stagnant or falling market, the only way to grow your company is to get more market share. And Cox Automotive
published its market share forecast for the first half of the year, and we think the numbers are very revealing.
General Motors gain the most share so far this year, up one point five percentage points. It's followed by Toyota
and Ford, which are up by less than half a point.
The Hondai Group was the second largest gainer, up point seven percentage points. Honda was up two. So if they're
all up, who's losing share? Stilantis leads the drop down
one point three points. Then comes Tesla, followed by Volkswagen. Mercedes, Nissan, Mitsubishi,
and Subaru also lost share. The rest of them stayed flat.
And remember, in today's market, one point a share represents about one hundred and sixty thousand vehicles, with overall sales of passenger vehicles not growing that much in the Chinese market and a pretty wicked ev price war local lautomakers have turned to exports to boost sales and keep inventories in check, but some of the biggest countries in North America, South America and Europe has started to push back on the flood of Chinese imports, which has even oversaturated areas
of those markets. That's why Chinese automakers are now looking
to places like Africa, which have high import fees, low incomes, and a lack of a charging infrastructure, but it also has massive potential with a population of over a billion people.
And Reuter's reports that there are now fourteen Chinese brands in South Africa, nearly half of which only launched within the last year, and they're already having an impact. ANYV
sales in the region more than doubled last year to just over fifteen th six hundred vehicles, which accounted for about three percent of the market. Some of the automakers
believe that they can spread that success to other parts of the continent byd plans to expand into East, West and South Africa, and Gascou reports that GAC just opened its first showroom in Northern Africa. Other popular regions for
Chinese automakers are Thai Land, in Indonesia, and GAC also just announced that it's not only bringing its Aion brand to the Thai market, but will produce the models locally on time. The top of that, GAC is building a
new sales outlet and battery service center in Bangkok as well.
It also revealed that its new factory in Indonesia officially has cars running down the line, which it can use to serve the local market, but it should be able to help GAC avoid extra fees on Chinese built EV's as well. Foxcon keeps moving closer to becoming a contract
vehicle manufacturer. It announced a partnership with software supplier electro
Bit to develop a software to find vehicle platform. They
call the platform EVOS, and it sounds like they'll sell everything from the entire architecture down to certain components or systems.
It's unlikely this will be the platform that fox Con supplies to Mitsubishi through its subsidiary Foxtron, since that model is supposed to hit Australia in New Zealand in the second half of next year, but it could use it in the future, and fox Con says it's working to bring and other automakers as well. But maybe Fox Tron's
partnership with Mitsubishi won't be for passenger cars at all.
The NIKA reports that it's nearing a deal to provide Mitsubishi's truck and bus division, Mitsubishi Fuso with its Model T bus and Model U microbus. They're also considering creating
a new company to oversee the whole thing.
Speaker 2: Knowing that a little rain won't slow down your day, That's what really matters. Bridge done to runs a buy,
attract hires confident control in wet conditions.
Speaker 1: US car imports to China significantly declined in May due to the trade war between the two countries. According to
the China Automobile Dealers Association, three and thirty passenger vehicles were shipped to China from the US last month, which is a sixty eight percent slump compared to last year, and through the first five months of the year only about eighteen eight hundred cars were exported to China, down nearly fifty percent. While the trade war is the main
factor for this year's decline, Chinese consumers just aren't as interested in American brands. Even last year, US shipments to
China declined for the third straight year in a row, and in related news, Japan says it can't accept the US's twenty five percent tariff on imported cars, according to its chief trade negotiator. He says Japanese automakers have quote
made an enormous contribution to the US economy and that they'll build more vehicles in the US than they export to the country. Japanese companies produce around three point three
million vehicles a year in the US, compared to nearly one point four million vehicles that they ship to the US.
They have also invested sixty billion dollars in the US and created two point three million US jobs. The US
and Japan have been negotiating a trade deal for months, but they haven't been able to reach a deal, mainly because of the car tariffs. Japan is trying to protect
its auto industry and says the US's twenty five percent tariffs could send the country into a recession, but the Trump administration wants to narrow the trade deficit with Japan.
Last year, Japan's trade surplus with the US was nearly sixty billion dollars, and eighty two percent of that gap was Japan's surplus of cars and parts Mercedes AMG revealed a new high performance concept that's based on their all new AMGEA platform. Since the actual production car based on
this platform isn't scheduled to come out until sometime next year, we'll provide a link if you'd like to learn all about where Mercedes AMG are headed with their future evs.
But there are a few things that we'd like to highlight, like its new drive unit with axial flux motors that are smaller, lighter, and more powerful. The AMG gtxx concept
features three of them, combining for roughly thirteen hundred and fifty horse power, Or like it's special paint in certain spots of the car that will glow when a current is applied to it, and even active arrow elements in the wheels. Five blades around the wheels normally sit flush
for the best arrow possible, but if the system detects that the brakes are getting hot, actuators push the blades out to provide extra cooling. And In one last bit
of automotive news, the Volvo XC sixty is now the best selling Volvo of all time, with over two point seven million sold. It passed up the Volvo to forty
and That brings us to the end of today's show, but don't forget to check out Autoline after hours later. Today,
we've got none other than the auto extremist, Peter de Lorenzo, coming back on the show along with Greg Migliore from Vertical Scope. We want to try and answer the question
will the car market collapse in the second half of the year, And we'll go live at three pm Eastern Time today. Thanks for tuning in.
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