2500 dealers bankrupt in China as industry on the brink of collapse

2500 dealers bankrupt in China as industry on the brink of collapse
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#china #evsales #evcars #evnews
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[@hhheee3939]

Most car companies arent even in the business of selling cars, theyre a finance company that sells expensive loans.

[@noahway13]

Airlines don't rely on plane rides.

[@mr.monitor.]

​@@noahway13 actually they do.

[@BA-gn3qb]

Especially GMAC.

[@HermanWillems]

how so? Here everybody buys their cars cash at least those i know. I mean i bought my Tesla Model 3 RWD with cash money. Why can't people just save money?

[@mr.monitor.]

@Aerism because we have banks and data that shows most people finance cars.

[@mpersad]

Sam, the July deadline for implementation Euro 7 in China is something only you were calling out for months. I saw it nowhere else. Top analysis, top work fella.

[@icosthop9998]

Yes I was chuckling at Sam mentioning time and time again about the Legacy Auto Companies going out of business. But Sam was on top of something I did not have all the in depth knowledge of. Look at the Dire Straits the #Jaguar company is in. Plus GM about to get another 2.5 Bailout from the American government. Amazon is down sizing, laying out thousands of their employees worldwide. Along with Amazon canceling their thousands of RiVian van orders. #Toyota not coming close to the year on year sales of last year. Ford trucks (Ford's best selling vehicle)sitting on the #StealerShips Lots and not moving. ect.

[@audience2]

Still haven't seen another Tesla pundit comment on this even though it will be highly relevant to Q2 sales figures.

[@MaximGhost]

@@audience2 I haven't seen any of the other Tesla channels cover EV activities in China. Not sure why since China is now the largest EV consumer market in the world.

[@DonBrowningRacing]

@@audience2 tesla is doing very well in china!

[@americanrambler4972]

Sandy Monroe has been clanging the alarm bell on the serious rise of Chinese electric car and battery makers for some time now. He is doing it from the manufacturing and technology side, because they are going to own the production technology side of the business.

[@mikef888au1]

Yeah, the OEMs had the opportunity to listen, and change. Just because they dragged their feet for 7 years, and ignored the new emission standards announced in 2016, does not make the CCP the instigator of this disaster. That being said, your channel is the only place where this news is breaking. Thank you so much Sam.

[@danielch6662]

I'm disappointed that Sam is now suddenly pushing this anti-China garbage. He himself has been telling us for months that it's the legacy auto-makers own damned faults that they didn't make EVs before Tesla gained such a huge lead. He's been telling us for as long as I can remember about BYD, Nio, and so many other EV makers in China, about how crazy intense the competition in China's car market is. There is no reason to think China has some secret evil plan to kill foreign car makers. The same car makers are dying in their own home market. Sam himself has been telling us. Yes, it's going to be a bloodbath in China. The CCP is just going to stand back, and let the free market work. Bailing out the workers, but letting shareholders and companies take the brunt of it. You know, like how the free market is supposed to work. I can't believe it is the communists who be the ones to figure this out. 🤦‍♂️

[@hmin5927]

Absolutely correct. The European car manufacturers often get a nod and wink from their own governments and thought they did not need to do anything in China. They can't complain.

[@MineFullStop]

The Germans are going to be the worst off..

[@mikec886]

So true

[@conglin6965]

Yeah they had 7 years to donsomething instead of just taking profit. Yes Elon was right but yes we all saw what was coming. Weak US and Europeans manufacturers are weak and we knew it…

[@kevincooper6797]

I live in China, I’m originally from the uk. I own a Chinese brand car … Geely…. I have to say I have noticed the rise in popularity of Tesla and BYD. This is a fascinating topic and I am so happy I have found your channel. Keep up the good work sir.

[@artlowe4198]

lol, yes, but the communist government of China is banning them in cities and other places, cause ... kzbin.info/www/bejne/m3Tdhmh4e5JkZ5I

[@davidboatman925]

Wall Street.

[@kaiulani3044]

China released its final rule for vehicle emission limits in December 2016 based on the best practices from European and US regulatory requirements. The car manufacturers had almost seven years to prepare to meet the new standards and can't blame the Chinese government if they failed.

[@richard--s]

The car manufacturers are used to make their country remove the restrictions. It has always worked. Until it doesn't!

[@hillwalker8741]

@@richard--s sure looks like it will happen again - too much to bail out

[@vilester]

Just means they can’t compete so bye bye. China not like the US where bad companies are too big to fail.

[@markuc]

Unlike the west where the government serves special interests, in china it serves the greater good of the people

[@LinuxGalore]

I have been working with OEM electronics suppliers in China for 35 years, even way back in the early 2000s the Chinese were already implementing restrictions on new electronics products to reduce emissions. So much so that even when western countries started implementing restrictions on power efficiency in consumer products, none of our products needed to be updated.

[@jyzzzy]

I tried to find source for these numbers, 2500 dealers bankrupt, 80% did not make profit etc. Unfortunately I did not find anything. Where did you found those numbers? It would very interesting to see more precisely behind those numbers.

[@edwardkon939]

Tesla fired the first two shots in price cut. As a result, Chinese electric automakers responded likewise, and it impacted on legacy carmakers (with Chinese joint venture partners) where their stocks are piling up. Car buyers are now in a price galore as every carmaker is trying to woo them using extreme price cut. Only the strongest will survive.

[@gaoxiaen1]

Only the one with the best CCP connections will survive. Maybe.

[@arminius6506]

@@gaoxiaen1 CCP closed down hundred thousand state owned countries. If you aren't competitive than CCP won't help you even if you are one of their own

[@user-hc5cg3jc3i]

@@gaoxiaen1 我笑死，1450塔绿班殖人轮子😂

[@mmark300]

Pretty sure this channel said that tesla did not fire the first shot with price reductions. They were just more widely reported.

[@simon6071]

The price of oil has gone negative for a short time at the onset of the COVID pandemic. I wonder if it possible for the prices of new cars to go negative for a short time during the collapse of the auto industry.

[@simonromijn3655]

Thanks for the coverage Sam. The impact of the decline in the ICE vehicle market will also lead to the demise of millions of car repair and maintenance firms. This has flow on effects for industrial property as well. There is not much being written about this.

[@Backyard_Motorsports]

Exactly, I’ve seen very few articles on this. I personally work in this industry and can say there isn’t much you can do with a Tesla, they won’t sell the parts.

[@420247paul]

@@Backyard_Motorsports because those cars aint going anywhere anytime soon

[@jimgraham6722]

There will be maintenance for EVs but the focus will be very different from ICE, engine/transmission maintenance will be much less. However, my prediction is suspension, steering, wheels and tires will be greater. Maintenance of integrated cooling system (battery/engine/cabin) will also be an issue. . Maintenance of the battery pack, inverter, engine/transmission will be highly specialised due to the variety of schemes and high voltages.😢

[@larryc1616]

They'll all go like travel agencies and DVD rentals

[@WarblesOnALot]

G'day, Squeak for yourself... My son is 33, he lives in an Off-Grid Stand-Alone Solar House, he's the town's Auto-Electrician - I raised him on Kerosene-Lamps and Candles, till my early home-made Wind Turbines started spinning Current from the Breeze - and then Solar Panels became way cheaper and more reliable than my Windmills. My Hut and Workshop and eBike all run from my Solar Tracking Tower of Power, and my daughter lives in a Solar Electric 6-metre diameter Yurt..., which has it's own Array, Controller, Batteries, Inverter (and 750w Backup Genny - let's be honest). I've taught the townspeople agound here how to cut their ICE-powered Vehicles' Fuelburns by between 5% and 35% - simply by adding a PV Panel and a Solar Charge Controller, and an Inline Fuse between the Battery and Controller. The SunFoil (streamlined Solar Array) FINISHES Recharging the Vehicle's Battery after the Alternator shuts down, when the Engine is switched off - at every Journey's end...; thus EVERY Time that the Engine is started, it is after the Battery "went to bed fully fed...", so after startup - the Alternator doesn't have to load-up the Crankshaft via the Step-up Drive, trying to fast-charge a part-flat Battery - so therefore it isn't burning any extra Fuel to spin what amounts to being an Electromagnetic Drag-Brake through a Torque-Multiplier, all to tow a 30% flat Lead/Acid "Parachute"..., dragging along "behind" the Fueltank-On-Wheels...(!). (Backtrack me to my Playlist titled, "The SunFoil Project..." For all the Raw Observational Experimental Data, Analysis, Construction Videos, and also the Australian Government's CSIRO Evaluation and ENDORSEMENT of my results...). When he was a 1st year Apprentice, my son allowed me to fit the 20 Watt Mk-2 SunFoil on his Subaru Brumby, to compare against the 5 Watt Mk-1 on my Subaru 1800 Touring Wagon, and then the 30 Watt Mk-3 on mine, and then he got a 4-WD Turbocharged Diesel Rodeo which tested the 30 Watt Mk-5...; after that, when he bought the Business where he'd served his Apprenhiceship, he put 2x 120 Watt + 2 x 45 Watt Panels onto his 5-ton Isuzu Workshop Truck..., after which I put a 30 Watt Mk-8 onto my Subaru Forester, and a 70 Watt Mk-8 onto my daughter's Forester... Observing us, Behaving thus... The rest of the town Apparently figured out that It isn't a Bullshit Idea... There are now maybe 60 or 100 locally-registered Vehicles getting around, Up and down the Main Street, sporting DIY Copycat Samizdat SunFoils... In Glen Innes, NSW, Oz. If you raise your kids to live in their Future, then you have to raise them to know how to REPAIR EVERYTHING which They'll need to use, in order to Maintain some semblance of a Comfortable Lifestyle. Because, Anthropogenic Global Warming Is WINNING.... Buggar it !!! Such is life, Have a good one... Stay safe. ;-p Ciao !

[@hanswitvliet8188]

Those companies moving their production to China, were erecting their own scaffolds

[@brilanto]

At least management got its profits and bonuses...

[@hanswitvliet8188]

@@brilanto good for a final farewell party. At school they should have paid more attention to Darwin.

[@lchpdmq]

Tesla makes most of its profit from Chinese manufactured cars…..

[@hanswitvliet8188]

@@lchpdmq they learned from it. Giga-Mexico will do better.

[@wgemini4422]

They didn't though. Foreign brands exports very few cars to western countries, other than Tesla of course.

[@bonkersdrifttrikes8799]

You've had some solid and even more fascinating content recently Sam. Raising the bar as a quality source of information over the entire auto industry. I came here for Tesla but staying for the awareness of the global auto transition 👌

[@LoveForTheTruthTV]

Facts.

[@thisisnumber0]

😂🤣😂🤣

[@bonkersdrifttrikes8799]

@@thisisnumber0 hey kid you should probably give your mum's phone back👍

[@thisisnumber0]

@@bonkersdrifttrikes8799 She never had one, died about 15 years ago😛

[@user-vj9hy8dw9e]

@@bonkersdrifttrikes8799 Transition? These Evs are being rejected globally especially in NA. Can you even afford an ev let alone the replacement battery? I doubt you can afford either.

[@JohnSmith-zo6ir]

When you say "Can they (governments) do this?", you should rephrase that to "Can tax payers afford it?". Governments do bail them out. We know this, because they've done it before. But, they bail them out with tax payers money, which leads to rises in taxes to pay for that bailout.

[@donaldkasper8346]

Discounts of up to 50% on cars is not a readjustment, it is a liquidation. So those manufacturers in China are going away. Tesla gets its money out of China by exporting all of its production. There is no domestic market and no way to get that money out other than buy raw materials in China to make cars for export.

[@jimraymond3668]

I love this story. It's a sad story, but had to be shared. You amaze me, you are always on top of things.

[@zes7215]

wrgg

[@carlhirsch8441]

Standard auto dealerships are Blockbuster Video

[@MetaView7]

There are too many cars in China. A little reset won't hurt them. In some cities, the roads are at capacity, so the govt has to set up a lottery to give out car permits. And they give out twice as many EV permits as ICE permits.

[@strykerace]

a few years ago Xi determined that there were far too many Chinese car companies, > 600, and they made the hard strategic move to create policy that would whittle this down. This change is healthy for the industry. Too much competition is bad because you can never attain scale and consumer can't tell who is not a scam, most were really bad and poor quality. You also don't want too little competition as this will hurt consumers greatly. So right now Chinese auto industry is going through a healthy rebalance, but there is just some collateral damage along the way, but in the end this will let the survivors be healthier, stronger, better.

[@moneyobsessed]

china cant afford now to have hundreds of companies and millions of workers to be unenployed

[@340wbymag]

I don't think China had some sinister plot in mind when they allowed foreign companies to operate in China. Rather it was foreign companies that went to China to exploit their cheap labor and lack of environmental regulations. The world was happy exploit China for financial gain. Today, China is a powerhouse leading the world into a cleaner future at a far greater pace than anyone ever expected. The transition to EV's is no longer an option and there won't be enough money to bail everyone out. It won't be just automakers that suffer. Each manufacturer has thousands of suppliers that will lose their businesses. Entire nations will see changes in their financial power as we transition away from fossil fuels. The transition will be painful for many, but it will be better for everybody.

[@4literv6]

Well said mostly. Because you missed that on a per capita basis the U.S. has more renewable and nuclear emissions free energy than China. And the ira is streamlining and boosting renewables and evs into war time footing mode. The whole world trembled when American industrial might was cranked up the last time during ww2. We the U.S. are gonna shock and awe some folks here right quick. 10-12,000,000 U.S. built evs a year by 2030 or sooner and adding more new capacity and factories every month it seems. We have enough renewable energy and bess just waiting to inter connect to our grids to 2-3x the current 21% of renewable electrical generation capacity. We could be 80%+renewable and nuclear powered by 2027 if we get out of our own way or sooner. 😎

[@pinchevulpes]

Yeah 10 years ago de globalization is rampant and china is in the rear view mirror, there’s not going to be a supply chain to support EV manufacturing to scale, china won’t even be able to feed itself.

[@paulrath7764]

LOL - China is building two new coal-fired power plants every month. Are they really leading the world into a "cleaner future?"

[@nguyep4]

Wrong, they knew of corporate greed and took full advantage of it and take all manufacturing skills and learn everything they can and eventually they will be the new master of the trades.

[@kenwk2283]

Nope, the manufacturers r suckers as all China wants is to learn.

[@leobreevoort9151]

China 6 emission standards, including the 6b-part that comes into play this July, were announced and put into law in 2016. This is hardly a surprise for anyone, nor is it any attempt by the government to 'nuke' the industry. As a matter of fact, China 6b is mostly comparable to American Tier 3 standards, that will be in effect in 2025. Euro 6 and 7 is way behind on most emissions levels, but Euro 7 has some interesting and yet not fully defined OBD regulations. The cars in dealer lots are not a problem for the car companies. They sold them already, the money is in the bank. It is a problem for dealerships, as you explained correctly. The current situation has probably a lot more to do with covid than with emission standards. The insecurity of the pandemic at first, China's quick re-starting of the economy and massively overheating it, following parts shortages, very long delivery times and to top it off, the backlash when the government changed its covid policy. Supply and demand have been out of tune for almost three years now. And the dealers are of course the ones taking the biggest hit, having a large stock when they didn't need it and nothing to sell when everyone was spending their money. During the early days of covid many brands started to experiment with direct sales and sales through online platforms. Many now have both online and offline sales channels. It will be interesting to see if the dealership model survives in China.

[@petersmangalisongoma2013]

Cars in dealerships are a problem to manufacturers because dealers are getting bankrupt. Their product distribution channels are getting closed

[@madchenwheat9364]

Thank you for your perspective! It's great to know the details behind the story!

[@s13kuminachu]

Solid take. Manufactures got paid. Dealers are left holding the bag. Will the OEM's do anything to help? Will banks be lenient on flooring costs? Anything past 60-90 days cost interest for dealers and it adds up quick.

[@gregoryfrech2310]

American standards will change/go-away when the republicans take over again. It is what it is.

[@andrewschmidt2886]

So you are saying that Chinese people on the dealerships and not so much the auto manufacturers

[@cashkitty3472]

Just watched a guy who blogs on China show how one of the main brands electric vehicles keep catching fire on China

[@jaybloggs8699]

Serpentza channel..

[@ablam8]

In the West, we are fed negative stories about China daily, and sadly, the US government pays well for it. You must take it with a huge grain of salt.

[@MineFullStop]

Yea I wouldn't believe a word he saids. He use to talk the nicest things about China but no one ever watched so he changed tactics and realised by trolling and hating on China gets views. I know because I watched him from the very start. When I call him up on it he deletes my comments.

[@nigelliam153]

It's true but it's not just China it's a worldwide phenomenon. There's a reason why Tesla has a small ac unit to keep the internal temperature of the car below 28 degC while parked.

[@nehcooahnait7827]

@@jaybloggs8699 ah for fucks’ sake. That shit still breaths?

[@ahjotco906]

It's a free market with the best management win.

[@lyfandeth]

Scratching my head...if the dealerships in China own their inventory, and assumably those dealerships are OWNED BY CHINESE, then the loss of sales will affect the manufacturers, but the Chinese dealership owners will take the worst hit. And possibly those cars will be exported and sold at a loss, boosting the other economies where cheap cars are needed?

[@madchenwheat9364]

And a lot of the manufactures have started shifting to direct sale mode and in the process of scaling down their dealer networks anyway.

[@realestatenow]

They can sell at a loss and if they can’t then declare bankruptcy.

[@stanweaver6116]

His analysis is simplistic as he really is an electric car booster who thinks only electric vehicles will be used ten years from now. That isn’t even a possibility because of a lack of materials to make that system operate. The jump in Chinese EV sales in Russia is a no brain comment, where else can Russia buy anything these days.

[@realestatenow]

@@stanweaver6116 most of the Chinese cars being sold in Russia are not electric. Chinese brands have plans to sell EVs as well but they have gone from 10% to 40% market share in just one year. The Russian car market has a severe contraction in 2022 (I think 60% or so). They have started importing from neighboring countries and increased domestic production (in some cases just assembly).

[@danielch6662]

​@@madchenwheat9364 it's for the best. We don't need expensive dealerships. End of the day, we the customers pays for them. The customers pays for everything. We only need service centers. Preferably independent ones rather than locked into particular brands.

[@shonnr]

Unfortunately, I saw this 15 years ago. With all outsourcing that goes to China not just cars. Products need to be made globally not just where you can get cheap labor. Thank God I get to retire soon because the labor market in North America sucks.

[@kabysummit5801]

US gov and particularly the private sectors played a hand in creating the current economic climate based on greed. Now, it wants to make China the scapegoat and attack it. Certain news channels are already exposing this fact. No wars!

[@TheBooban]

You know who else saw this? Those crazy anti globalist protesters that have become antifa today. I never suspected our govts. would be so stupid and that the crazies were right.

[@kenoliver8913]

But Chinese labour is not very cheap these days - about the same cost as Mexican labour in fact. There are still plenty of much cheaper countries around - most of Africa for a start (which is exactly why the Chinese are investing trillions there). Globalisation is about a lot more than China.

[@crazybillsgarage]

Not thinking of buying a new car for years from now, will keep my Honda Civic with 50 mpg for as long as I can. This news will pass like all other things in life. Thanks Sam and good wishes to your family.

[@shanghaidiscovery2664]

Few points: - in Shanghai or Beijing, the difficulty of registering cars is not new and has been there for decades and you would never have bought a car before securing the right to buy one in these cities and yet it never affected overall demand. but also if you have a car already and wants to change then there is 0 difficulty into changing the registration over - Car manufacturers are appealing right now for the right to continue selling current models with CHina 6 standard until at least December 31 2023 and if possible June 30 2024. The likelihood is that some extension will be granted because this is the way things are in China. They float an idea, see what the reaction is and adapt. And one thing that is very important is that the extension is likely to be granted because all the brands you see as Japanese, US or German are in joint-venture with Chinese state owned companies and except for luxury models which are imported the rest are made in China. So for example Citroen's partner is Dongfeng, a huge stateowned carmaker, and part of the discounts on those cars is being funded by the Hubei provincial government. So in fact this will also cost the state a lot so it is likely that rules on China 6b emissions will be delayed at least for part of the country (and by the way these rules are coming in most other countries as they are part of commitment on climate change emission reductions). anyway, so people will wait and see if discounts get bigger or not. But the future is electric and demand there is slacker and I would not conclude Elon Mush was right... Whilst Tesla is still doing "ok" in China, it is like Starbucks. a victim of its success... too many sales, too early. And so few models.... Compared to 3 years ago, there is no stigma now in choosing a Li L9 or Xpeng G9 or Aito M5 or IM - LS7 or a Nio ES7.... Now Tesla is reacting by cutting prices a lot (RMB229 k for a base model 3 now) but in the end these other brands are also getting much better at marketing ... And they understand Chinese customers better.... all offer their cars in colors that in the US or Europe may be weird but that many want here. But in the end, we will see if Elon Musk going it alone in China without a JV partner is the right thing or not. When things are good, it is a good idea, when things slow down, well.... who knows also whilst BMW is doing huge discounts on BMW i3 which cannot sell in China (so many other mini and small EVs so no market for an imported subpar small EV given import taxes), they are also making a huge push on the BMW i7.... And in small EV segment, Benz was smart to start that JV with Geely. Probably not huge number but that smart #1 is appealing to more and more people and we see a lot around Shanghai these days. and they followed the Chinese EV company playbook: if customers want these in bright yellow, pink or baby blue, then let's do it

[@leighrobertson2731]

Thank you... For your input very interesting and I totally agree I am a spray painter I work on the Sunshine Coast we work on all of high-end vehicles and all they are now EVs teslas and byds . We have at least 2 EVs a day leaving our workshop.

[@cb250nighthawk3]

I want it in sunshine sunflower yellow. 🌻

[@fsaldan1]

Very interesting. Somehow the stock prices of Honda, Toyota, Mazda, VW have been rising. Investors have a different picture in their minds. I cannot figure it out.

[@petersmangalisongoma2013]

Never under estimate the impact of Jim Cramer's advice 😂😂😂

[@svargamba]

They are not very sophisticated in this area.

[@user-jh6vt8vx4v]

The stock market is too far off from the real economy.

[@larryc1616]

Short!

[@808BizStuff]

Coordinated pump for exit liquidity from retail investors?

[@sbase20d]

It has been known since 2016… people just ignoring it

[@positronundervolt4799]

If you have debt, you don't have assets. You have debt.

[@larryc1616]

VW = 200B debt

[@harryzhang3111]

The argument's main fault is that China had announced the progress and even specified which year as target to transform into EV in "China". The traditional car manufacturers could blame no one but themselves. If they could not satisfy the Chinese market, then they could sell the products outside China or go to some other place where their fossil fuel car still competitive. Indeed, I have noticed that China did not put their effort to improve their fossil fuel engine and instead has been spending heavily in new energy technologies R&D including batteries.

[@michics100]

I think the financial world and gov'ts need to stop with the "their to big to fail" philosiphy regarding banks and auto companies. These two industries are due for a thinning of the ranks and it's about time we allow it to happen naturally.

[@noahway13]

Yep, totally, but everyone is going to feel the hurt. BIG HURT.

[@andrewschmidt2886]

Tesla and BYD will come out on top it’s good I got stock in both

[@Hybridog]

So you think putting millions out of work at the car companies, their suppliers, dealers etc. is a good thing and we should just let that happen? Or the banks and financial firms and all the millions of people who depend on what they do? Just let them go out of business and everyone suffers right? You seem to think the carnage would be limited, but it wouldn't be. And why exactly is it a good thing to let things "happen naturally"? Everything we do is an artificial construct - everything. If we don't control, regulate, manipulate, shape, mold, guide all these constructs, they all will fail and so will civilization. It's unnatural by design. So what, just give up let nature's chaos ensue, and then sit in your mud hut and wait to die? Genius. And grow up BTW.

[@simonromijn3655]

I am guessing that both Germany and Japan will let car makers go to the wall because there will be no political imperative to bail them out. This is because both countries have declining populations and there will not be a shortage of jobs for retrenched car industry workers.

[@hamishfullerton7309]

@@simonromijn3655 there biggest industry s , the company's are basically run by government and still have population of around 100 million, I don't think so. If Australia can spend over 300billion on submarines. think they will keep there car industries going

[@ozyrob1]

This will be like the 3 red lines for real estate in China. Unintended and unforeseen consequences.

[@terryward1422]

Ponder this: What If: all of those workers who build ICE cars in China loose their jobs in the next year? If those workers loose their income they are no longer consumers contributing to the Chinese economy but rather unemployed citizens needing social assistance which means they are a double knock worsening the Chinese economy.

[@alphalunamare]

I think 'ownership of the means of production ' went over most peoples heads :-)

[@captainalex157]

commies at it again

[@zenithdawn9663]

We've already seen this happen with the steel industry and many more.

[@jomckeag4482]

Comrades! UNITE!!

[@ahaveland]

Dyslexics of the world, untie! You have nothing to lose but your Brians!

[@Obsid_Ian]

@@ahaveland Remember the dyslexic atheist who lay in bed wondering if there really is a dog!

[@declinox]

I imagine all the cars that can't be sold in China will go to other countries (probably nearby Asian ones) and be sold there; at a discount, to be sure, but dealers will find some way to liquidate them.

[@wangyaohan8824]

countries with left hand steering wheel.

[@JohnGeorgeBauerBuis]

@@wangyaohan8824 there are a surprising number of countries that will accept cars with the steering wheel on that side.

[@wangyaohan8824]

@@JohnGeorgeBauerBuis agree.

[@jackreacher8858]

@@JohnGeorgeBauerBuis So it not this one but that one ! LOL !

[@TIKIWOLF]

Saw a lefty here in Hawaii the other day. Loads of smaller delivery trucks too.🚛

[@brunosmith6925]

Tony Seba discussed this "stranded assets" factor NINE years ago... Who was listening back then? (I was... amongst a handful of others).

[@FutureSystem738]

Ditto 👍

[@808BizStuff]

Seba FTW! Yep, me too. 👍

[@legostud]

I’m sure the majority of those cars will get shipped to other markets. Buy them at auction and resell them in Africa.

[@johnholland1308]

This channel is the only place I have heard about this important economic issue. It will certainly be interesting to see what transpires.

[@electricviking]

Thanks Mate!

[@devonbikefilms]

Ask not for who the bell tolls automakers, it tolls for you.

[@clintatk]

Whom. Sorry, I just couldn’t resist. 😂

[@devonbikefilms]

@@clintatk 😂😂😂

[@FrunkensteinVonZipperneck]

It trolls for LEGAs

[@randalsaladbar]

China's hit the rest button, by accident, from the emissions law that was passed 7 yes ago. Legacy Auto management has been on Level 5 FSD mode the whole time. 🤯

[@Myrddnn]

We are nearing a "post-scarcity" situation. We need to deal with that.

[@Martinit0]

I think post-scarcity got called off for another decade: stuff that is currently in high demand (> than supply): * BEVs * BESS (Battery energy storage systems) * Heat pumps * companies installing heat pumps and solar panels

[@MsSteveeverett]

Cheapest EV in the UK is £28000 English pounds with a 200 mile range ,either I have got to have a massive pay increase or the price of EV cars has drastically to be reduced to affordable levels

[@XenonJohnD]

Base model VW Golf in UK is £24,835. Nissan Leaf 239 miles £25,812. Zoe 245miles £25,609.

[@MsSteveeverett]

@@XenonJohnD can't afford any of those!

[@kiae-nirodiariesencore4270]

You can look high and low searching for an idea of what the future of the car industry is but however hard you look you keep coming back to Tesla.

[@EnriqueThiele]

The reason as of today is because Tesla (a technology company) is the largest manufacturer of EV in the world, without any credible "competitor".

[@gmsuchecki]

@@EnriqueThiele I think BYD could be a competitor. Maybe Geely/Volvo will also.

[@willcooper7651]

There will no doubt be a lot of consolidation in the industry in addition to bankruptcies. I think some of the larger OEMs will split off their EV manufacturing in the same way Ford has done in an attempt to let their ICE production fade away. I don’t think that will work. The US government will bail out GM (again). Not sure about Stellantis or Ford. Dealerships will fold en masse. There’s no way the legacy OEMs can compete with Tesla if they’re stuck with the dealership model. They’ll have to buy out their contracts. China’s a lost market for foreign OEMs. You’re right that China doesn’t need or want those competitors taking market share from their own automakers. It’s likely that many legacy OEMs will go bankrupt, but not without a fight.

[@tblazer5784]

Great work!!

[@peterbroderson6080]

Over a hundred car companies going bankrupt meaning all employees and suppliers for all the parts are out of work as well. Seem the "knock-on" effects have not been discussed as they are important!

[@gunsumwong3948]

A lot of storm over a cup of tea. The world has decided by 2030 to 2035 all legacy car with ICE would be phase out. China is ahead of others by going with EV so it is to be expected car manufacturers would switch to EV. Some legacy manufacturers may choose to terminate the production instead to setting up plants in China. So there will be closing down of some car dealership and car manufacturing. China has been a magnet for every car manufacturer to exploit the domestic market and many had a good run of profit for some years. China is just the first country showing the phase change.

[@randomjasmicisrandom]

I can only speak for what I see in the UK, but even though the ban has been introduced there is a strong movement trying to get it reversed. All sorts of reasons are given, usually linked to a petrochemical backed anti net zero perspective. Germany have also tried water down their ban on ICE vehicles by introducing a clause allowing green fuels, whatever they are.

[@easyxpress]

This ain't "social experiment", this is the good old "competition". The winners come out on top, the losers go home. This was an open exam given out by the Chinese government many years ago. Some automobile makers are too naïve or short-sighted, they underestimated the determination by the Chinese government, and tried to milk the ICE profits as much as possible. They really thought no one is able to make a viable profitable EV in the proposed time and the Chinese government will delay their rules. Then, here came the BYD and Tesla, and the rest is and/or will be history.

[@gaoxiaen1]

Except that, for the most part, EVs run on coal.

[@andoverite]

@@gaoxiaen1 Ah, but not in China! That's where the non-stop program of building massive hydro-electric dams throughout China will reduce the demand for coal generated electric energy.

[@adrianduffen600]

Byd, have opened up dealerships in the UK.

[@johnmcbirnie3203]

How do you know these cars are stranded? What is the regulation in which they are non compliant? When I googled it, it seemed that most cars would be compliant.

[@danielch6662]

The ones that are compliant will get less discounts. The ones not compliant at getting the steepest discounts now.

[@andyfreeze4072]

i have been saying for a long long time Evs are a strategic initiative. Tony Seba warned us about disruptions on the horizons. Its a perfect storm coming. OEMs are still not understanding the future. I for one only have sympathy for the workers.

[@user-jh6vt8vx4v]

For state own enterprise, the worker is likely get a pretty decent servent package. Then they can job right to Ev start up division. With ICE competestion gone. It ill be ev or nothing

[@ryan6391]

Can they ship these cars out of China and sell them in another country

[@royh6526]

I expect so. Certainly the obvious thing to do rather than sell for scrap value.

[@WANDERER0070]

Sure Rusia is good place 😂 they dont care about Evs

[@vasukinagabhushan]

China's economy is slowing down.

[@petehill3634]

Thank you

[@pikachus5m166]

When the US plays hardball over issues of trade, with the EU following suit, China plays wrecking ball.

[@JorgeMartinez-ez1jl]

US, Japan and Europe can always ban sales of Chinese cars too.

[@ordinaryhuman5645]

It's less about trade and more about "stop trying to sell your legacy ICE trash".

[@pikachus5m166]

@@JorgeMartinez-ez1jl They're already doing that with the ban of high-end chips, putting up obstacles to prevent CATL, the biggest EV battery manufacture, from building manufacturing facilities in Europe or the US, and thinking of additional levies or import duties, anything to stall the market. But the growth regions are the remaining 75% of the globe, where the US, Eu and Japan are priced out.

[@zenithdawn9663]

America's electrical grid is not up to handling all cars being EV. ICE will have a place until that is taken care of...or maybe we can start burning coal like China to power our EV's.

[@oliverwunsch4412]

most of the Petrol Japanese cars will be exported to Russia.

[@jkn6644]

And all other cars that can't be sold in China!

[@jkn6644]

@@johnsmith-cw3wo If Chinese dealers own those cars, why not sell to Ruzzia?

[@steveschofro298]

You are exactly right. Forgot to mention reduce supply of components or raise prices.

[@lynnwandering581]

Don’t forget we Chinese who don’t live in the first tier city, we are the majority, young man and women who start their careers living in small cities, we would like a heavily discounted gas car if it is cheaper than the EV! Just wanna point out to foreign analysts that you need look beyond Beijing and Shanghai.

[@johnburger1320]

A quick check says that 84% of GM’s debt is held by their financial services division. So servicing the debt load may not be as bad as one would at first think.

[@guslevy3506]

GMAC is completely independent of GM. GM sold GMAC yrs ago in one of their other financial crises…

[@johnburger1320]

@@guslevy3506 In July 2010, General Motors entered into a definitive agreement to acquire AmeriCredit in an all-cash transaction valued at approximately $3.5 billion. The deal provided GM with a new financial arm to replace the loss of GMAC (now Ally Financial) in 2006.[6] Following the approval of the deal by AmeriCredit shareholders, GM renamed the company "GM Financial" on October 1, 2010.[7]

[@gaoxiaen1]

@@guslevy3506 GMAC with Chinese characteristics.

[@lesliecarter4295]

Tesla and BYD are not immune.

[@user-jh6vt8vx4v]

For this specific case, they are. The problem is not the demand ot economic, but emissions standard and competition between the EV manufacture spill over to ICE product

[@heileopold6122]

Dealerships survive on after sales and spare parts. EV cars will suffer too. Tesla sales are steeply down and have to be discounted at unimaginable prices

[@pascalpoussin1209]

Great analysis.

[@rodneybuckingham1377]

"Slurping dinosaur juice" ROFL

[@sherrjo]

No family EV's on the market for reasonable prices yet sadly. It's coming but I need a car now so 2nd hand ice market for me sadly.

[@realestatenow]

Ami hope you get a good deal. Used car prices continue to be high.

[@mradventurer8104]

Actually, this could have been anticipated. Back in 2005 China was already pushing for smaller cars (I was researching it back then for a large organisation). Now we are more than years later!!

[@Bman63]

You are definitely thinking about this using a BIG picture view which is what is needed...your analysis makes logical sense in my opinion.

[@markuss3735]

"Slurping dinosaur juice" - Love it. Great expression.

[@bobsmith3983]

Crude oil does not originate from biological origins this was proven by the Russians using deep well drilling. They found oil where no dinosaurs or other biological material could have ever existed.

[@icosthop9998]

Where is everybody ? ❔️ 🤷‍♂️

[@williamgrunzweig571]

It's been 19minutes.

[@clintatk]

😂

[@christopherhamilton5557]

👋👋👋

[@mnhsty]

I don’t know what will happen but I am amazed that the situation is not being covered much by the media. It’s no longer a slow moving disaster.

[@johnbirk843]

They are shooting themselves in the foot. They forget that consumer spending is what drives the vast majority of any country's GDP. If and increasing amount of consumers are out of work, who will buy their products?

[@TuanLe-ko5rm]

They don’t even need to make antiquated car chips anymore😅

[@thaven5004]

I know you were just having fun, but I am responding as if you were serious. As far as I know, a chip fabrication plant (fab) is worth nothing once it stops working. The actual building is a specialized design, the equipment inside cannot be repurposed and can only be sold as scrap metal, and the employees' skills are nearly useless at new fabs. So, as the fab ages and the yield goes down (often matching the reduction in demand), they will run it until there are no more customers. Last time I checked, there was at least one fab still making a 80386 variant chip - it is still being used as an embedded chip and they would have to redesign/recertify the entire device to change it. Maybe the Raytheon Patriot missiles each have a 80386 still.

[@-POISON-]

The way I see it, the foreign companies will most likely lobby for a deal to sell whatever they can. Otherwise, either try to cheat the system or shift whatever they can to other markets (most likely asian). Given the narrow profit margins for volume sellers, I don't know how feasible that will be, unless they either bump up the prices or get some good tax deals. Very iffy though, with essentially one trimester to go.

[@timwhite8500]

Good luck trying to lobby that government

[@chrisscurr2756]

Thanks for your insight. Are the manufacturers of Low Speed Electric cars and enclosed Mobility micro cars in the same boa? I have a Ji0005 on order.

[@N0rdman]

Stellar analysis: I think you've nailed it. What will the consequences be? It's now up to the governments of Europe and Japan to act as only USA seems to have awakened and smelled the roses. That is why Volvo, both truck and car businesses, is more and more looking to go to the USA as the incentives being put in place clearly favors manufacturers based in USA. Otherwise there is another entire business sector and all those ramifications going bust in Europe and Japan.

[@danielch6662]

Volvo (the car part) is Chinese. Has been for years. Truck part is doing fine.

[@jomckeag4482]

Volvo, a quality CHINESE car company

[@N0rdman]

@@jomckeag4482 only Volvo Cars, Volvo Trucks are still a separate entity and is NOT Chinese owned.

[@johnmckeag1048]

@@N0rdman Volvo makes trucks!?!? Who woulda’ thunk

[@N0rdman]

@@johnmckeag1048 Volvo makes trucks, buses and construction equipment, like dumpsters, diggers and Volvo also supplies marine and industrial drive systems too. Oh, did I forget, Volvo owns Mack Trucks in the USA too, it's a part of Volvo.

[@liontone]

American automakers *really* don’t want dealerships anymore. Franchise laws here require that dealerships act as a middleman.

[@kabysummit5801]

Hi Sam, can you do a video on how China is able to sustain exponential growth in EV cars while supporting the electrical needs of these cars, on the current infrastructure and grid. A lot of US folks buy into Toyota's BS reasoning that EVs will crash the electrical grids. Thank you, and I appreciate your work.

[@theairstig9164]

Owning an EV is very different to recharging it from empty every day

[@TheBooban]

Obviously when people want more electricity, they will expand the infrastructure like they always have. Weird this needs to be explained.

[@kenbeals4462]

The Chinese are opening 2 coal powered electric generating stations per week. No problem keeping the grid going.

[@wowokingxoxo]

In the major cities in China, noses are turning black with soot again.

[@realestatenow]

For starters if everyone got an EV on the US we would need double the current generation capacity. And then transmission lines and all that goes with it. I don’t see anyone talking about this but it is very important if we want EVs to be adopted by everyone. So far no plans to do that in the uS.

[@hamadalthani7535]

Thanks

[@Tagoreapoet777]

Thank you, for this information. Let’s hope our leaders are watching your channel…

[@Tential1]

This has been my whole thesis... Stranded assets. If the government forces you into ev, you have billions of useless assets. Lol.... The government made Tesla such an easy investment, I'm astounded people in finance can't do this math. I'm surrounded by actually stupid people in this industry. If management doesn't directly tell them something, they can't do it. Doing their own independent research or learning anything new is almost impossible for these people.

[@vilefly]

Vogons are slug-like but vaguely humanoid, are bulkier than humans, and have green skin. Vogons are described as one of the most unpleasant races in the galaxy-not actually evil, but bad-tempered, bureaucratic, officious and callous, having as much sex appeal as a road accident, as well as being the authors of the third worst poetry in the universe. They are employed as the galactic government's bureaucrats. They are also the worst marksmen in the galaxy. They follow orders as they were told to and will not allow exceptions. They don't create anything, they just run everything.

[@isayfuck2526]

bad news? this is glorious news!

[@thaven5004]

Sorry, I disagree, horrible news. Millions out of work when governments can't afford extended unemployment payments or stimulus (until the interest rates head to zero or below) could easily trigger a serious depression. If this worse case (not worst case) happens, I expect Tesla to accept zero profit margins, continue driving towards 20 million/year production by 2030 and burn through their entire $20+ billion nest egg. Stock markets around the world will panic and the price of Tesla stock will go below $100 (NOT investing advice). This is only glorious news if you only look at your finances, not the rest of the world; have a bunch of cash; and the stubbornness to buy when "things are only getting worse".

[@prosay]

This is why my latest purchase is a Lexus (Toyota) NX450h+ I won’t buy a Chinese vehicle. I am very happy with my purchase too!

[@bizzfo]

Forced technology transfer. It’s not just the car business.

[@wildfood1]

Anyone not believing this need only remember all the pollution stories we used to see about Chinese cities. China is seriously trying to lower their air pollution and if foreign automakers need to be sacrificed to do it, so much the the better.

[@davidanderson8469]

They could have cleaned it up decades ago. It's not rocket science. XI has no regard for his people.

[@billyehh]

Where are they going to get the electricity for them. They already have a serious power problem and the main answer is coal. Even more polluting than gasoline.

[@parajacks4]

@@billyehh China is the world leader in new green energy and has been for a while.

[@timothychung4811]

​@@billyehh Hydro, solar, nuclear, wind, and fusion so far, but the break throughs in research have other possibilities....

[@ianstobie]

Coal was running at 63 percent of the energy used to generate electricity in China in 2021. They are not going to reduce that much, nor do they intend to, as they are still opening coal mines. Under its COP 26 pledges, China has stopped building coal plants abroad, but it will keep adding new coal electricity plants in China until 2025. After that it may gradually reduce coal's role, but no firm pledges have been made on that. This isn't incompatible with switching rapidly to using more battery EVs in cities. Yes, the BEVs are ultimately mostly coal powered, but the air quality in cities is the key thing that people notice, and the BEVs are cleaner than the mix of vehicles they have now. India is the other big country still using lots of coal in electricity generation. It is also has a problem with city air pollution, so will also switch to electric vehicles once they get more economical. I think India's priority now is switching to renewables, especially solar, in electricity generation. The US comes next in coal use for electricity. Globally about a third of electricity is generated from coal. If you add natural gas in its various forms including LNG this goes up to well over a half - approaching 60 per cent, for these two fossils fuels. The natural gas share is still rising, so don't expect the fossil fuel share in electricity generation to fall much before 2030 - and with it CO2 emissions from power plants. This of course is the context in which electric vehicles should be seen. They can clean up air locally, but whether they help with CO2 emissions depends entirely on how the electricity being used to charge their batteries is generated. Australia's role in all this is as a major exporter of both LNG and coal. It does have plans to export "green" hydrogen produced from solar at some point in the future, but this may still be vaporware!

[@davidturnbull310]

3 years of lockdowns, very smart.😂🤣

[@ashleycampbell6825]

5 Star Content. Highly appreciated and explains the current vehicle discounting in China. Writing is on the wall for a major reset of ICE vehicle manufacturing and their dealership model in China. Great reveal of China's long term strategy for the automotive industry. Legacy auto manufacturers have served their purpose and are no longer needed. Tesla was invited into China [2010?] to progress/develop the Chinese EV manufacture with their IP. Groundwork is now in place for the EV industry to dominate in China. SAIC and BYD are testing the export market particularly in countries without domestic automotive manufacturers.

[@douginorlando6260]

120 days. Where will a couple million unsold cars end up? Indonesia? A few thousand in Laos? Thailand?

[@ParasiteZappers]

It all started with making fire-crackers 🧨. Then TV's, Stereo's, Android Phone's ...now, Cars....HELLO ❗

[@warrenerickson4159]

I remember reading that the Great Depression was caused by the collapse of the market for horse feed brought about by the success of the automobile. Will we have another collapse caused by the success of the EV? “History doesn’t repeat itself, but it often rhymes.” - Mark Twain

[@godzillamothra5983]

except this time the one who make the obsolete things are foreign companies

[@fsaldan1]

You should not believe everything you read. Especially when it is obviously absurd.

[@handyallen]

In New York city 1910 their were 200 buggy whip manufacturers by 1930 their were 0

[@jackreacher8858]

Story sound horsey to me what !

[@gaoxiaen1]

No, because the success of the EV market is a pipe dream

[@vikramgokhale7302]

Dealers are bankrupt (not just in China, but in US too) because most people don't have the money either to buy expensive cars or to pay the loans already existing - how is any Govt. concerned in the bankruptcy?

[@kasinatha1]

This disrupts the oil lobby😢. One place they find it difficult to manouevre their way in is in CP-China.

[@thedualtransition6070]

Hilarious that the commercial I keep getting served for EViking videos is for the Canadian Oil and Gas Industry!

[@user-jh6vt8vx4v]

Yeah, same here. And they call themselves green. Sure, however works.

[@damo5701]

The truly hilarious thing is most people are ignorant to fact that it was a Rockefeller and other elements of BIG OIL that started the anthropogenic CO2 climate change scam! I always laugh hardest when I hear climate activists claiming anyone disagreeing with the narrative, is being paid for by big oil.

[@johncurtis920]

So here's the counter to your proposed "China gambit." China won't be allowed to sell anywhere outside their middle kingdom. A little tit by them will get a tat in response. But I do agree that +20 years of off-shoring all American domestic manufacturer has set up this scenario. There's no quick way out of it except to do the hard work of reshoring manufacturing, especially of key items, back to domestic shores. I'd bet the Europeans, the Australians, all of 'em are coming around to the same idea. So China, while having an advantage, doesn't have a durable longer term one. Let's see what happens next.

[@williamgrunzweig571]

Interesting. I hear that same observation from so many individuals, however they don't account for the cost difference when using human labor in the US vs China. Everyone wants cheap products, but nobody wants to accept the fact that to get that cheap prices comes at a cost. If you think about it logically, the correct response is to say...We need manufacturing back in the US that's heavily automated to keep costs down, as you don't have to pay a labor force US wages and benefits. We will pay for repair technicians and outsource software monitoring engineers till basic AI will do it without large amounts of human oversight. Now you have addressed the core of why you wanted to offshore manufacturing in the first place....you wanted to keep prices low and cheap. Now the winds have changed, and automation is going to be the key to maintaining lower cost structures while new jobs will be created to service that automation..arguably fewer jobs vs manual human labor..till that goes away far into the future. That's how all progress works. Accept this and design a plan to integrate ourselves and educational requirements that are congruent to the known outcome. Or just keep thinking like it's the 1900s and focus on your past designs and engineering and fail to meet the needs for the future...your choice of course. Either way it's coming...so who wants to come out on top?

[@FrunkensteinVonZipperneck]

China Syndrome. Great film from Michael Douglas & Jane Fonda.

[@christinearmington]

@@williamgrunzweig571 UBI

[@johncurtis920]

@@williamgrunzweig571 True enough. But I'd submit that the cheap labor problem is migrating to China, too. Look around that region. They are no longer the low-cost provider of labor. They, too, are climbing that same "value added" chain aren't they? And more and more of their educated middle class is having the same struggle in trying to find work. See the China Insights channel for some interesting reveals on that struggle. Regarding robotics and the like, I also tend to agree. But the way it's going with A.I. and such pretty much all primates across the planet could be out of work, which means the politically distasteful idea of a Universal Income starts to rear its head. Brave New World, eh? 😉

[@marks-0-0]

You cant stop China from selling overseas because of agreements already setup plus it woukd takes generations to return the west into a manufacturing economy. Note this, I'm amazed that apart from those who actually like Tesla and what they stand for then people love to bash them when they should be supported and revered. They are an American company and are leading the EV revolution and are openly disrespected by their government.

[@modallas8034]

👍Good presentation👍

[@patricepainchaud]

8 months in, I suggest an update on that. Your videos are great!

[@NiejakiDD]

My Q: Can EVs manufacturers fill the demand gap if IC cars don't sell anymore in China and make their manufacturers go bankrupt? Seems very unlikely: EVs output is too low and can't quickly replace IC cars by EV cars. The most likely scenario seems brutal price wars and massive disturbance all over the world. As if we all have not others problems.

[@danielch6662]

You don't understand how brutal China's car market already has been, and China's manufacturing capacity.

[@cb250nighthawk3]

Life is indeed brutal. I found that out the hard way and paying the price for it 😢

[@machoopichoo2]

Even though governments love to bail out banks and car companies, I do not believe legacy auto will get bailed out, this time. What will they bail out, with companies that make products no one wants to buy? It is like bailing out a wagon wheel maker. A pile of money won't help these incompetent companies be able to make BEVs profitably.

[@petersmangalisongoma2013]

Bailing out a wagon wheel maker 😂😂😂

[@machoopichoo2]

@@petersmangalisongoma2013 Thanks! I believe it is not a bad metaphor. 😁

[@TheBooban]

They will just buy from BYD and put their sticker on it, like other companies do for just about every other product. And charge us 5x the price. Designed and assembled domestically, perhaps, but BYD manufactured.

[@machoopichoo2]

@@TheBooban Won't be cost competitive. BYD barely makes any money on their own cars, let alone, someone marking that up. BYD has crappy infotainment and ADAS. The consumer isn't going to pay for something from "Toyota" when it's just a badge, slapped on a car they didn't make. Lastly, this would still leave them with massive debt, an ICE business to wind down, and their steelerships.

[@larryc1616]

What happens to VW, Porsche, Mercedes and BMW if Germany don't bail them out? 😮

[@anotherelvis]

For better or worse this is great news for the climate.

[@timw4369]

dealers in north america are next. The dealership model is dead and dealers dont even see it coming. That will be crushing

[@matthiku]

You're absolutely right and it is about time! Dealers are dinosaurs and their time hase come!

[@ricnyc2759]

Don't forget this: the world's largest robotic company (robots that build cars) is Midea Group (Kuka robots). A Chinese company. Even Tesla uses Kuka robots: "Kuka robots are mostly industrial arm robots used in manufacturing. It is Tesla's preferred robot for most of its production line along with some FANUC robots." (Electrek, 2022) So, no matter which company survives, there's a chance they will use Kuka robots.

[@sahanda2000]

Kuka is a small company, (rev.: 3,5 billions usd) lost most of its market to smaller Chinese oem's for the last 15 years... they hit hard in 2009 crisis when (when Chrysler, GM etc gone bankrupt) and Midea just saved them from a coming bankruptcy... and industrial robots are not a critical area of tech expertise any more, just a little bit more flexible solution for automation...

[@ricnyc2759]

@@sahanda2000 BMW, GM, Chrysler, Ford, Volvo, Hyundai, Volkswagen and Daimler AG are among the customers.

[@ricnyc2759]

@@desertstar223 Robot as in "robotic arms". kzbin.info/www/bejne/o4uQfWl8r71mr6c

[@taijistar9052]

He has insights!

[@FRIPPE_THE_GREAT]

The problem is that the Chinese economy is tanking. 62 Trillion dollar housing bubble; largest in human history. Shadow banking and regions with budget deficit of up to 40%. Not strange the auto industry is failing. Western auto industry in debt: China hold my bear...

[@maryhadda8420]

I've been hearing that BYD cars catch fire a lot, due to poor quality control. That might put a damper on Chinese manufacturers' plans, and help Tesla.

[@benjamins8082]

That would never happen in europe. Fake news. Byd is in Norway, germany, Holland, soon Belgium, Sweden, and the UK. If they are poor cars as you say, then they would never been allowed in europe. Fake news

[@nehcooahnait7827]

Did you watch something from a particular South African dude that now lives in LA…?

[@jpjay1584]

export cars are ok. the ones that are sold domestically I would't even take for free. different standard. lots of corruption and news of burning cars get deleted.

[@ablam8]

@@jpjay1584 So you are suggesting that Chinese buyers will put up with crap and not say anything. You have a lot to learn.

[@jpjay1584]

@@ablam8 no. I didn't say that. I work in China for 10 years and deal with factories and production. many products for the domestic market don't have the same quality control and standards as for international market (as those are required if you export to other countries) so yes, products on the local market many times didn't even go through a quality control. whatever is in the box you have to try and see if it works correctly. THEN: how many Chinese did you see in your life, in a Chinese store, buying a product, open the box in the store and check it it functions? in 10 years I see many and all my friends do this. and guess what they say: you have to check it, before you take it home. and it was them who told me at the beginning when I saw this first time that the export stuff is checked differently before leaving the factory. now a car battery can't be checked but yes, how do you think the price is justified? I saw iphone-headsets in Shenzhen for 1,20 usd. what do you think you get for that money? and do you think if you buy 40.000 of them that every single one of them was checked and works? seems, you have to learn a lot.