China's Backdoor Thru Mexico & How To Block It - Autoline Exclusives

Chinese auto suppliers are investing heavily in Mexico, with the idea of using it as a backdoor into the U.S. market. Chinese automakers are not far behind. Nick Iacovella, Sr. VP of Public Affairs and Communications at the Coalition for a Prosperous America, lays out the threat as well as action the Coalition is taking to try and block it.
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[@austinwffly2136]

We desperately need affordable cars here, period!😢

[@johnmcvicker6728]

Will likely not come from the big 3.

[@enriquegurria3947]

I’m Mexican and I welcome the Chinese investments in quality & affordable cars. It brings jobs, air quality and a necessary renewal in the automotive industry. If Mexico gets anchored in anachronistic technologies we’re doomed and so is the USA. The talking points of the interviewee are wrong and cynical: there’s no Mexican automotive industry but foreign firms whose output is 9/10 for export. The Mexican markets absorbs the low end, cheap, low security, low quality cars -Nissan Versa, GM Aveo- that will be wiped out by high quality, secure and affordable electric cars. American industries are losing market share because they are driven by easy and short term profits and have obstructed green technologies and supported Old Big Oil. We need to remember how GM killed the E1 around 2000. American industries should try to compete and cooperate within themselves and with Chinese companies instead of fueling commercial wars.

[@QuincyHolloway-eb5yy]

Well put, well said... funny how the harsh reality of the truth get buried by piles of dirty cash. Kudos, China, Kudos Mexico, Kudos Brazil, et. al. Earth First! Capitalism will ALWAYS follow. Better, cleaner cars that don't burden the owner in operating costs full stop. Drive electric, never go back and quitcherbitchin'!

[@dansanger5340]

Why block it at all? Remember: "Nobody wants EVs." There's no reason to block something that supposedly nobody wants.

[@eddieg6436]

Maybe in the miserable, unimportant “Flyover states”, but here in Southern California there are MILLIONS of EVs! (my neighborhood block has 3 new EVs just this month!).

[@rwdplz1]

You want these death traps driving on the same roads as your wife and daughter?

[@remix-yy1hs]

Hypocrites

[@ArthurZakaryan23]

What is one of the primary reasons for so many of these people that "don't want them"? Easy, cost. Of course a BYD in the US for instance wouldn't sell for $15K or less like it does in China but under $25? Very doable and for a car that will easily get 250 to 300 miles of range and for that price, you'd easily get more converts from ICE owners. Of course charging infrastructure is still very lacking in most of middle America but year over year that's also improving.

[@buntnik]

It’s not EVs, it’s auto parts of all types. Parts made in Mexico subsidized by China.

[@KingBravo-lo3vc]

I quit listening when he cited the study that said that tariffs don't increase American prices. I mean it is 100 a percent tax on Chinese cars.

[@vorlon81]

@@KingBravo-lo3vc same here . I lost interest when he quotes a single study commissioned by some right wing think tank.

[@godofdun]

Yeah, I wondered where it was going to go, soon as I saw that I hit stop lol

[@hoffrun]

In 2000 US auto makers wanted China to do the hard work and shine our shoes , but now China can make our shoes and so now it's a problem ?

[@Ask-a-Rocket-Scientist]

I’d love to see $13,000 Chinese cars on US roads to force legacy auto to innovate. $47k average auto price is insane.

[@javim2589]

Nothing stops people from buying a 15-16k Nissan Versa.

[@kingkiril5]

its people like you that don't watch the video and mislead everyone. You want to drive a vehicle that spies on you? Why not just invite the Chinese to your employer and let them work your job for you too?

[@ojbarberena7090]

Legacy car manufacturers deserve the Chinese competition. The consumer will be better of.

[@GForce162]

@@kingkiril5 nah, just admits we fail at capitalism, instead of being a god damn commie!

[@JT_771]

Nicely short-sighted. Just what we need

[@YSKWatch]

afraid because someone else is more competitive. reminds me history about US make japan & china open their market more than a century ago.

[@Outsider.Reviews]

My issue about him saying we need to protect American automakers so they can get back on their feet is.... They've had plenty of time and they spent it increasing their profit margins instead of trying to grab market shares. They messed up and now need protection to keep their pockets fat

[@stargazer3828]

Agreed! The tariffs on Chinese cars is just going to make American automakers drag their feet even slower to create affordable vehicles because the CEO's want to keep squeezing profits out of cars and trucks costing over $60K. If Chinese car companies were to enter the US market that would force American auto makers to reduce their prices in order to compete and that would mean lower profits for investors which the CEO's don't want to happen on their watch so they kick the can down the road until they retire and it becomes the next CEO's problem.

[@hoffrun]

Allow China EVs into the market and let's see what the consumers want or don't want.

[@beaglebrigade]

So only legacy automakers can exploit low cost Mexican labor?

[@juanvga]

💯👌

[@Vikingj72]

If someone provides a product that people can afford and want, maybe the competition should study it and do the same thing instead of blocking it. Admit when the competition is better and strengthen YOUR game.

[@buntnik]

But our workers cannot work for a lower wage.

[@12rmoreau]

@@buntnik some factories are close to being fully robotic it's amazing

[@davefroman4700]

The US will NEVER achieve the economies of scale that China enjoys. And thus they will not be able to compete with them.

[@bobwallace9753]

@@buntnik It's not labor cost. Auto manufacturing is highly automated. And China no longer has super cheap labor. Labor costs are lower in Mexico than in China and that's where a bunch of US car manufacturing is being done. What we have is a failure of legacy car manufacturing in the US, Japan, and Europe to develop EVs that people want to buy. Don't blame workers, they produce the product the bosses tell them to produce.

[@electromega3077]

Instead of spending enormous times and energy to block competition, why don't they just spending the same amount of time and energy to make cheap and good quality cars

[@bobwallace9753]

Because they have waited so long to develop good EVs, legacy may not be able to make the switch. Legacy companies typically owe a lot of money, they have enormous debt. They need to sell a lot of vehicles for a profit and then sell a lot of parts for those vehicles in order to pay their debts. They aren't able to make profitable EVs and EVs won't need parts like ICEVs need. Legacy is largely screwed.

[@12rmoreau]

What a load of nonsense BYD is going to whip your ass even with 100 percent tariffs that the customer ends up paying

[@williamsmith5462]

Compete. Compete. Sell cheap take market share. Are we seriously throwing in the towel on capitalism now?

[@FrancescMuro]

YES. It has been the case since OBAMA took office with socialist policies

[@lawrencefranck9417]

That is capitalism. Legacy auto has been price gouging and should go bankrupt

[@davefroman4700]

USA has been a fascist imperial duopoly masquerading as a democratic capitalist nation for 70 years.

[@bobwallace9753]

Legacy has a problem in selling lots of EVs at a loss in order to gain market share. They need to earn money to cover the debts they've built up over years. Losing ICEV sales means losing the profits they have to have in order to pay their debts.

[@AuralioCabal]

Unions are a roadblock to EVs which need way less partscompare to ICE drivetrain , and leads to easier automation of factories, this on top of EVs needing less maintenance compared to ICE drivetrain and cheaper to " refuel" ,heck if you install Sollar panels you get that Fuel free.

[@bobwallace9753]

No union made the decision to ignore the oncoming move from ICEVs to EVs. That was a decision made by the Board of Directors and CEOs.

[@MikeRobot]

Why is everyone up in arms about what they are doing? America has done it for decades. Now that the shoe is on the other foot it’s different. I don’t think so.

[@user-tx9zg5mz5p]

Chinese car designs are leaps and bounds ahead of the Legacy brands, including Tesla.

[@bobwallace9753]

Nope. They are imitating Tesla, which US legacy has refused to do. Legacy laughed and lost.

[@user-tx9zg5mz5p]

@@bobwallace9753 you must be a Tesla investor 🤣

[@bobwallace9753]

@@user-tx9zg5mz5p I follow the EV market fairly closely. It doesn't take a rocket scientist to see all the times Tesla brings a new idea to EV manufacturing and then we start seeing Chinese companies copying Tesla a couple years later.

[@hoffrun]

NAM gets membership fees from 1,000s of companies but only represents the top 10. NAM isn't serious about most US businesses .

[@enriquegurria3947]

If China would do what this guy says USA should do, a lot of American industries that depend on Chinese markets and Chinese based production for export would go bankrupt.

[@lawrencefranck9417]

Bring on BYD and the others. USA/legacy auto makers have lost their collective minds on prices.

[@bobbbobb4663]

Meanwhile Leon won't even get a permit to build in Mexico. Reminds me of another autonomous permit he won't get either...

[@phillyphil1513]

re: "Reminds me of another autonomous permit he won't get either..." "EAT IT LEON...!!!"

[@bobbbobb4663]

@@phillyphil1513 Geo fenced demo incoming

[@johnmcvicker6728]

Thanks Sean. You were right, working on new content with young guns. He spoke coherently and about current issues. Very important issues. More please.

[@FrancescMuro]

A real obsessive paranoid. If Americans used this energy to work hard, they would be much better off

[@williamsmith5462]

Make better EV s. And cheaper.

[@vorlon81]

Coalition for a Prosperous America sounds like MAGA for Cars .

[@enriquegurria3947]

USA is a already a prosperous country, just has a horrible economic inequality that is a dangerous problem for democracy

[@enriquegurria3947]

Yep. I was ready to hear him singin’ They are eating the dogs…

[@silverlex1]

It is

[@nocturnallips]

You cant block access from the back door, the Chinese just let you take it!😌

[@charleshaggard4341]

Somewhat ironic that no one was standing up for the Mom & Pop independent bricks and mortar stores when Amazon was doing this to them. In the beginning, they used Amazon as a market place to sell their products and Amazon learned what they were selling and over time went to the manufactures directly to cut them out. In a way "we have met the enemy and it is us."

[@LaBambaCL]

4:29 china exports far less cars as a percentage of the domestic market than japan, germany, korea. this overcapacity made up term is quite false.

[@AlexParkAndRide]

This was a bs interview. The guy was full of misinformation and contradictions, but no followup questions or any effort to untangle any of his questiobable statements. Sounds like he has a problem with Mexico, not with China. He should probably spend some time advocating for the Chinese companies to open manufacturing in the US instead of Mexico if that's what he's after.

[@bobwallace9753]

This is nothing more than Detroit legacy attempting to postpone bankruptcy.

[@foxtrotwolf6081]

I think it's a positive to give Mexican workers the opportunity to get some manufacturing jobs, even if it is paid for by the dollars we send them by buying all the made-in-China stuff. They keep on talking about "subsidies". China doesn't have a personal income tax. Where are they getting the money to do all the subsidies besides the money we send them? Maybe start there?

[@billybobhobnob101]

Just out of curiosity what happens to GM and Tesla if they are banned from the Chinese market?

[@vancity2349]

GM and other legacy brands are done in China....

[@rayblackburn2230]

@@vancity2349 Tesla's will become harder to sell China as well. Yet they still get to export from China with much lower taffris

[@vancity2349]

@@rayblackburn2230 why will they become hard to sell when they have a plant there and are employing people?

[@bigfins215]

I keep wondering why we don’t use quotas instead of tariffs - give a reasonable portion of a particular industry to imports to encourage lower prices, innovation and consumer choices but don’t allow foreign made products to put domestic producers out of business.

[@lifefun1987]

tesla is sold in china and enjoy subsidy same as byd in china. i sold my model y and bought huawei m9. it is double price and 100 more advance in technology. US was respected in china

[@1HeatWalk]

Tesla has better software; Chinese EV has better hardware and build quality.

[@lifefun1987]

ii thought so until i drive huawei m9. it is far better in software too. shanghai traffic is difficult yet m9 drive by itsrlf almost perfectly ​@@1HeatWalk

[@buntnik]

Tariffs are paid by the receiving business in US. China does not pay. The receiving American pays. We must be clear on this.

[@FreePalestine2107]

Americans had no problem.when ford gm and all western car companies dominated the chinese market for 40 year making hundreds of billions annually. Once chinese car companies are out performing western car companies this is as problems lets close down our markets.the double standard and hypocrisy is sickening.

[@rayblackburn2230]

Everyone that built cars in China has had to team up with the Chinese to manufacture there. The US legacy boys should team up with China to get the job done here with EV's. Win/win

[@junkerzn7312]

I liked the interview though I think the guy is a bit jaded. But he's also dead wrong on tariffs. If anything has been demonstrated in the last decade, it's that tariffs do enormous damage to domestic industry while propping up a very tiny subset of it. And the reason that is the case amounts to "The Global Supply Chain". The fact that products these days... nearly all products, are technological entities that require immensely complex parts sourced from all over the world. It is simply impossible for any single country, even the U.S., to make all of those parts domestically. Which means, in short, that those countries on the receiving end of tariffs have plenty of leverage to claw back all of those costs via other products and parts. And we can see the proof of this in all the negotiation happening with EU tariffs on Chinese products.. Domestically, tariffs do incredible damage to fledgling industries which construct more complex pieces of equipment from parts. To the point where all of these industries are basically forced to outsource the entire assembly line to China and then just take the hit on the finished product. Because its cheaper to do that. For example, take power stations and solar panels. Tariffs have decimated local industries that used to be able to compete. I'm talking installers (for solar panels), system makers for power stations (because they can't source batteries as cheaply as the rest of the world can), and the list is endless. If the U.S. really wants to fix this problem, subsidies are the only real solution. Tariffs have to go... tariffs are inherently incompatible with the modern world economy. This is what China did and China is winning because of it. The U.S. has to do the same. -Matt

[@dougsheldon5560]

Not everyone wants a 6000 pound truck. I see the Taurus is coming back. And the Ranchero!!!!

[@GForce162]

"Protect Mexican industry", gee, since when does America care about that? Is NAFTA not being taught in school no more?

[@bartbixler3278]

Stop shopping on Temu, Stop shopping at Walmart but, we are addicted to low prices so it will continue.

[@buntnik]

I’m not paying higher prices. I shop Walmart!

[@Study49]

Yes

[@johnlesoudeur3653]

Cars are rapidly reaching the stage of them being just another utility that we use everyday. It will shift to a similar model to the manufacture and sales of mobile phones. This will complete the shift to a similar service plans/monthly payments/insurance with choice of brand models.

[@user-xg6ib2xf5v]

This won't play out well for US. Just like when Walmart came into small town America there was talk of buying local to protect small local businesses. Well, people say one thing and do another. Small town downtowns are dead. And the places that shut out Walmart are not doing much better, now they have to drive further. Untimately, it comes down to, "Are we willing to pay the high salaries of our fellow Americans?" I think the answer is no. We need a strategic manufacturing capacity, but not more legacy support for BS auto prices. Just wait until the robots and ai get here. 24/7 lights out factories and cheap Made in America goods, hoo boy.

[@xlargetophat]

Mining is what the USA doesn't do.

[@vgstb]

There is something wrong with Nick, but it's hard to pinpoint.

[@MM-sf3rl]

He has a cold?

[@kingkiril5]

its the laptop camera making his arms look bigger than his head😂

[@juanvga]

Looks like the gringos are afraid of free market😅😅😅😅😅

[@JT_771]

Surprised at how many comments here are essentially "Screw it, let 'em do what they want". Sadly short-sighted & problematic.

[@phillyphil1513]

re: "Sadly short-sighted & problematic." exactly, you can tell they're "born yesterday" and are "baby young to the world".

[@d.wagnerRE]

It is called free market capitalism!

[@grjmich]

John. You need to have this topic discussed every month and some ideas should be kept confidential. Don't let the other side know your game plan. This is a game of chess, Chinese are thinking 10 to 20 moves ahead.

[@FrancescMuro]

Paranoid should be kept out of a serious program as Autoline

[@psv998]

Apple doesn't make iPhones.They sell iPhones.

[@buntnik]

But Apple has manufacturing in China. And sales everywhere. Oh yes, Apple has factories in China.

[@frankcoffey]

The recent events in the middle east shows we need to vet electronics more carefully. We use or have thought about how technology could be used and we should assume everyone else does.

[@GForce162]

Yes, the middle east is now getting wake up call and asking china to make electronic without western parts.

[@grjmich]

This analysis and how to stop it is long overdue, I would say 5 years too late. This is needed in every industry, not just automotive. Chinese would create joint ventures with Mexican counterparts and then able to skirt the tarries using USMCA.

[@Chris-N916]

How about Americans learn to build better products and compete, instead of crying foul when others do it better? And don't give me this "CcP bAd!!" narrative. Detroit cried the same tears when the Japanese whooped its arse in the 80s.

[@chosuriki]

Yeah, why so scared? Nobody wants EV anyways. Looks like those colour's do run, lol.

[@buntnik]

There has been over 7,000,000 Teslas sold. Thats not “nobody wants.”

[@RayNLA]

So Capitalism is wrong?

[@GForce162]

dude just denied America's id

[@JT_771]

Capitalism needs controls is all. There are business practices that are not acceptable.

[@bxclent]

if China is doing this lawfully then so it goes....

[@peterjaniceforan3080]

🇨🇳😾

[@rwdplz1]

How do you compete with slave labor? You don't. You punish and discourage the practice, by adding on cost that EXCEEDS the cost of a well-funded labor force to the cost of the product.

[@vorlon81]

@@rwdplz1 that's a weird way of saying robots.

[@Chris-N916]

Yes, China uses slave labor to build cars. They don't even feed them, let alone give them any salary. They are called robots.

[@by9917]

15:10 normal combustible engines - sounds like a non-car person getting into the politics of cars

[@renehunt4252]

China is helping mexican economy.e want cheaper cars

[@renehunt4252]

Why block it gm and ford are dead

[@buntnik]

Because the jobs and profits are not in US.

[@kbmblizz1940]

Why do you want to block affordable, $25k reliable EVs that can run on half price vs 🛢️, even free if you have solar PV on your roof? Oh, you rely on ICE, ⛽, fossil fuel, UAW to stay relevant.

[@Chris-N916]

This Nick guy is a shill for the US legacy automakers. He'd rather see hard working Americans pay $20,000 more to buy a shoddy car from Detroit.