Long overdue - the Chinese EVs are affordable, and are kicking ass.
Enjoy your TEMU car.
Assuming this is a derogatory comment; I’m curious why you think people shouldn’t be able to purchase these cars for cheaper or market value? It’s not like the tariffs are for road safety reasons or anything.
Enjoy your compensatory RAM!
I thought we needed to protect domestic auto production. What does BYD pay their workers to get away with smaller margins?
Seems like local industry only wants to focus on ICE vehicles so there’s not much to protect
Probably because local industry needs to sell vehicles to make money, not go into $40B debt fronted by the Chinese government.
For every EV sold, Ford sells 15 F150s.
EV sales are barely 6%, you want to try and stay alive with 6% of the market? EU sales are higher, but EU is warmer and they drive a fraction of the distances of Canada.
I thought most of the Canadian car industry are assembly lines for US American and Japanese companies. Especially the US part is probably dead anyway, given Trumps tariffs.
They pay their workers well, but that’s not why these cars are cheap They are cheap because BYD loses money on every car, propped up by the Chinese government on a long term plan to kill off local industries across the world.
What does BYD pay their workers to get away with smaller margins?
They’re vertically integrated. It isn’t that they need to low-ball their workers. They just don’t need to pay a daisy chain of administrators and investors.
They also don’t invest as much in R&D as some of their upstart competitors. So we’ll see where that lands them, long term.
There is not much R&D to invest in EVs. Motors are 98% efficient and any technical advances come from battery suppliers. No transmissions, no emissions to meet, etc.
We just need to make it so they are built here. To hell with the US car companies.
I’ve heard there are a few Canadian carmaking employees looking for work. Wink-wink nudge-nudge.
SayNoMore, SayNoMore.
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Unlikely to happen because that would mean they would cost as much as other EV imports and Canada does not buy enough cars to justify the investment. The only reason why the auto sector exists in Canada is to feed the US market.
BYD just has had a 30% drop in profits. So the answer is they do not get away with it. They are among the best Chinese car makers too. A lot of them loose money. The fundamental problem is that China built up a massive local car industry. Not for export, but for the domestic market. This was massivly supported by local Chinese governement, which gave subsidies to built car factories. Globally nobody cared that much, but Covid destroyed car sales in China and they so far have not recovered. The factories have been built, so it makes economic sense to just built cars in them, if the losses of doing so are lower then taking on the loss of the entire factory. Obviously export is a great solution for that problem and obviously Western car makers are not happy about having to compete with companies, which basically have free factories.
We probably will see a lot of bancrupcies in the sector and some of the large ones survivng and doing well globally. BYD is probably among them.
BYD is $30B in debt.
China is dumping and drop shipping these cars. If Carney allows this, he’s basically going to shut down the auto sector in Canada and 440,000 jobs. Australia did this, and now they have all the shitty Chinese cars they want.
The question is for the long term: is the auto sector worth the billions of continual subsidies? Australia did the math and concluded not.
That’s a fair point, the trade off being it pushes people away from cheaper vehicles.
Considering is probably just gaslighting, but can make auto sector more cooperative with Canadian investment. Very good news to finally visit China and talk for a change, though.
A 30% tariff would allow for decent Chinese market share while also preserving existing auto sector marketing preferences. Ultimately, a trade deal that includes manufacturing investments in autos, solar, H2, robotics, AI datacenters, public charging is a needed boost for Canadian economy including local use of metals and other resources, and a plan B for autoworkers. Canada needs new friends.
He’s likely to do this because all the EV sales in 2025 barely hit 6%. Assume these cheaply made cars will get half that market, so 3%. That’s only until people realize how bad they are. In exchange, we sell China billions in crops they are no longer buying from US.
Before I get the achshully responses…no, EV sales are not limited by pricing because used EVs devalue badly because the used market is a fraction of a fraction of the total market. If costs were the barrier, the used market would be stronger.
And before some simp links to YouTubers reviewing Chinese cars, no auto review source mentions long term reliability, because that is not allowed by manufacturers allowing reviews. So they count cup holders and walk you through countless pointless gadgets that will all break.
A BYD model has a deployable drone for parking. Sure that will last.
Things break in all cars. Do you have any data to back up your claim of reduced reliability? Seems they’re doing just fine in Europe.
BYD e6 has been used as a taxi in Singapore for 7+ years.
https://www.e2i.com.sg/news/launch-of-hdt-electric-and-eco-friendly-taxi-service-in-singapore/
Canada itself seems to be use the same e6 model since 2019
Dumb idea. Great way to put your domestic car factories out of business and people out of jobs. Chinese EVs are heavily subsidized.
Or…F150 and Silverado buyers are never going to buy EVs anyway, so at best they will get 10% of the market for a few years before the cars fall apart and no one buys them anymore. This is what is happening in Australia.
To be fair, a lot of domestic auto production is also subsidized. At least, based off my limited understanding, Toyota is given major tax breaks in Cambridge, Ontario.
Having products subsidized by someone else is an amazing advantage for you. I can’t believe anyone would consider that a problem. Don’t look a gift horse in the mouth, and all that.
It’s a false accusation against Chinese auto sector that it is heavily subsidized, or especially, that it still is. Cheap metals, factories, robotics, batteries, motors, financing, and high competition leads to low prices.
Bullshit. That’s what community college business majors believe. These companies are in massive debt with horrible EBIT numbers. Exactly why Buffet pulled out.
Can BYD Survive An EV Downturn With Its Risky Debt Strategy? - BW Businessworld https://share.google/OzaaHfOnCoiOBaLya
They already are not paying their suppliers.
BYD (1211 HK) Supply Chain Financing Masks Ballooning Debt, GMT Says - Bloomberg https://share.google/CW3XsJQDESe396K82
So if we sell these cars in Canada, they will be in dumps within 5 years with no parts support.
GrEeN rEvOlUtIoN
complete nothing burger
The company posted revenue of $108.1 billion and net profit of $5.6 billion, growing 29 per cent and 34 per cent year-on-year respectively. However, behind the impressive numbers lies a growing concern about how BYD is managing its finances, particularly its rising accounts payables and the increasing use of supply chain financing.
Accounts payable (part of profit calculation) rose by less than sales. Normal for it to rise equal to sales. Also why would EV sales go down? EVs are a fad or something?
EVs are simply better cars, that provide opportunity to power your house, and profit from electricity arbitrage. In case of BYD dolphin, where whole car costs $300/kwh for just a mobile battery, the car would pay for itself at just 3c/kwh arbitrage profit.
It is not a false accusation. While the auto sector directly is not as heavily subsidized as it once was, there are a ton of hidden subsidies that allow Chinese car manufacturers to produce cheaply. This goes from subsidies for steel, electricity, rare earth metal refinement and battery production to tax incentives, expedited regulatory approvals, car exports or trade-ins of older cars.
China had and still has a systematic policy of state support until a near global Chinese monopoly is reached, like with solar panels, batteries or rare earth refinement. It’s the same playbook and other regions are correct to be weary of allowing mass imports of Chinese cars to protect their own industry.
For example, Germany was world leader in solar panel production and research and now there is hardly any of that left. If the same happens to the car industry then Europe is going to be in big trouble as it employs millions of people.
subsidies for steel, electricity, rare earth metal refinement and battery production to tax incentives
Policies for abundance are not subsidies. I know it’s normal for us to let oligarchy rule over us, and let them pillage everything through scarcity price premiums, but not maximizing oligarchist supremacism is not the same as subsidies.
solar panel production and research and now there is hardly any of that left. If the same happens to the car industry then Europe is going to be in big trouble as it employs millions of people.
Europe/World overall can do well with technology transfer. Battery and metal imports helps its manufacturing sector. Protecting local metal production with government purchases or price subsidies to stay alive can be strategic, but metal reserves imported from where they are cheapest is the actual national security path. Cheapest energy from China is manufacturing competitiveness too, in addition to massive jobs in deploying it.
Having the once in every 100 years bright idea of losing a war on Russia, and going all in on that, is the last refuge of political capital to leverage CIA propaganda to destroy people’s prosperity and lives, and distract from doing nothing other than increasing CIA/US sycophancy. Inviting massive investment from China to specifically boost all of European industry/jobs, including more Airbus production to sell into China, and trade more alcohol and cheese to China (and Russia).
policy of state support until a near global Chinese monopoly is reached
The frequent smear is the projection of Oligarchist supremacy on others. Chinese solar dominance has not resulted in scarcity policies. There is high competition inside of China that is likely to continue, and China likely to protect that competition and abundance. It threatens the supremacy of profit maximization through scarcity, and is why the “say anything to smear/block China” attitude prevails.
Becoming reliant on a foreign monopoly carries risks and political pressures.
The goal is to strike a balance between comparative advantage and self-relience.
Penny wise and pound foolish (and all that). The goal of Chinese subsidies is to put competition out of business so that they become the sole supplier.
Also you should ask Ukrainians how they feel about the money you send to China being used to prop up Russia.
If the Chinese government is truly subsidizing EVs to the point they aren’t otherwise profitable, they are LOSING money, not earning it.
You should ask Canadians how they feel about the money we send to the USA to prop up Russia.
