Europe, for all of its bluster, hasn’t taken a completely hard line against the import of Chinese electric cars and hybrids. The resistance in the United Kingdom has been even weaker. Now that the tariff issue has been temporarily resolved, China’s leading EV automaker has a gambit to pierce the heart of even the toughest skeptic: Soccer.
If soccer doesn’t work, there’s always cheap local production. Stellantis has started manufacturing its first cheap Chinese-designed electric cars in Poland in advance of an expanded rollout later this year. This is possibly one way to avoid tariffs, which are coming to Europe and have resulted in a bit of delicious retaliation from China.
Shifting back to the United States, there was a huge spike in used car sales in May, which I think is more proof of my theory that people simply cannot wait much longer to replace their aging vehicles.
Euro 2024 Tourney Leads To 69% Increase In BYD Searches
When the topic of soccer comes up I tend to remember the old Dave Eggers line about how only communists play sports with their feet. At the very least, communists are happy to pay for Europeans to play sports with their feet.
BYD is an official partner of the Euro 2024 tournament, which is where all of Europe’s soccer teams battle one another. Streaming TV deals, Ted Lasso, Ryan Reynolds, and the success of the USWNT have all conspired to get Americans to care a little more about soccer. This is why some of your friends pretend to be experts in the sport for a couple of weeks every four years.
On the other side of the Atlantic, everyone is an expert and everyone is watching. A record 10 million+ people in the United Kingdom watched Germany kick the ever-lovin’ crap out of Scotland (it’s a shite state of affairs to be in). Data shows both the wanker colonizers and colonized-by-wankers are at least open to the idea of being invaded by Chinese cars.
According to data from Auto Trader UK, traffic on the car sales/research site for BYD vehicles increased by 69% during the weekend, with most buyers interested in the BYD Seal. Here’s what Auto Trader editorial director Erin Banker had to say:
“Our traffic data shows that this tournament is already triggering a step-change in awareness of BYD little more than a year after they entered the UK market. This high-profile media partnership only underlines their ambitions in Europe where they face tough competition from the well-established legacy brands. BYD’s sales are growing rapidly, albeit from a low base, and the Euros partnership has the potential to cement them in the public consciousness.”
It was here I was going to make a joke about pitching cars and soccer pitches, but I can’t quite make it work. Please give me your best soccer/BYD/Euro joke in the comments.
Another quote I like about soccer is the Lewis Black one about how Europe has avoided another continent-wide war by engaging in the far more violent and nationalistic UEFA soccer tournament. The War in Ukraine undermines this a bit, although I think I’d allow a Russian team in the tourney if the Russian army would leave Ukraine. Fair trade?
Leapmotor Is Starting To Produce Its $20,000 EV In Poland
While Stellantis has some screwy plans for North America, the company’s co-venture with Chinese automaker Leapmotor (of which Stellantis is the majority shareholder) makes a lot of sense to me. Chinese firms, for various reasons, got ahead of everyone else at making EVs. Chinese automakers also sell the kind of small, supermini-class electric vehicles that are popular in Europe.
With a large number of plants in Europe, Stellantis has the right footprint to produce Chinese-designed cars locally. In this case, the company’s plant in Tichy, Poland has begun to do some early test production of the intriguing Leapmotor T03. This is a small car (about half a foot shorter than a Mitsubishi Mirage) that should cost around $20,000 when it goes on sale later this year and deliver 145 miles of range on the WLTP city cycle.
Automotive News Europe is reporting that, from a financial performance perspective, localized production works:
Manufacturing costs at the Polish plant amount to around €400 to €500 ($428.08-$535.10) per car, similar to those at Leapmotor’s base in China, versus around €1,000 in Italy, the management said according to Jefferies.
Leapmotor is another one of those Chinese companies facing new tariffs on imported cars, though on the lower end at 21% (plus the 10% on all imports). Building in Europe should, so far as I can tell, help the company avoid the fee. While the supermini might be popular, the company also plans to produce its more Model Y-sized SUV, the A12, in Poland next year.
Forget The Chicken Tax, Here Comes The Pork Tax
While China has mostly shrugged off the new European tariffs, this doesn’t mean there isn’t going to be some form of retaliation. China has already threatened to add a 25% tax on top of large-engined cars from Germany and to punish French cognac producers.
What about the rest of the EU? China might hit them right in the chops:
China has opened an anti-dumping investigation into imported pork and its by-products from the European Union, a step that appears mainly aimed at Spain, the Netherlands and Denmark, in response to curbs on its electric vehicle exports.
The investigation announced by China’s commerce ministry on Monday will focus on pork intended for human consumption, such as fresh, cold and frozen whole cuts, as well as pig intestines, bladders and stomachs. The probe will begin on June 17.
The joke here is that the EU did an investigation into Chinese electric cars before pushing tariffs as high as 38% on the country’s automakers.
Retail Used-Vehicle Sales Up 15.9% Month Over Month
The green line on this chart of retailed used car sales shows a massive increase in sales that are way ahead of what we saw last year. What’s going on?
The chart comes from Cox Automotive and here’s what they had to say:
“Following a less-than-spectacular spring selling season, May used-vehicle retail sales rebounded to the highest level so far this year,” said Scott Vanner, senior analyst of Economic and Industry Insights at Cox Automotive. “In fact, used retail sales volume is higher than any month since March 2022, when tax refunds were juicing the market.”
It’s worth noting that March 2022 was an ideal time for used car sales because interest rates were low, people were flush with refund cash/stimulus money, and there were very few new cars available. The fact that we’re close to that number I think shows that there’s still a ton of pent-up demand in the market and, while incentives are up, higher interest rates are making it harder for people to swallow huge car payments.
If I were running a large multinational car company sitting on extra inventory I’d be tempted to lean heavily on financing deals to move cars.
What I’m Listening To While Writing TMD
Can I brag a little bit about an old friend? My pal Will Butler wrote the music for a play called “Stereophonic” (go see it!) about a band recording their breakout album. It put Will in the position of having to write a fake ’70s rock album, which sounds super hard! The play won many Tony Awards, including “Best Play” and I’m just super happy for my dude.
Also, it allows me to retell the story of how non-musical I am in a much funnier context. It must have been 9th grade and Will and I were both at a speech and debate tournament in some random Texas suburban high school (Cy Falls?). There was always a ton of downtime between rounds and one can only play so much Egyptian Ratscrew. Knowing that Will was musical I suggested we compose a song together based on a tune in my head.
Will dutifully recorded the notes and played out the tune on the small portable keyboard he carried with him. By the end of the day, I was sure we had a hit on our hands. When the basic song was worked out I asked Will to play it all back for me.
“Why does this sound familiar?”
“It does sound familiar.”
“I think it’s the theme song to Bewitched.”
“Damn, it’s the theme song to Bewitched.”
I gave up songwriting/composing then and there, which the world is surely better for, though I’m glad Will wasn’t so discouraged.
The Big Question
What are your friends saying about buying new/used cars?
“What are your friends saying about buying new/used cars?”
Nothing much. We’re much more preoccupied with our homes/houses… either stuff our houses need, or finding a new place and stuff like that.
I personally have been talking about car insurance and how it impacted my used car buying choices. In my area, for me to insure a used 2014 Tesla Model S that I can buy for around $18K, the insurance will cost CAD$3600/year.
Meanwhile a 2022 Hyundai Ioniq 5, which costs more than twice as much and can be even more expensive to fix, only costs only around $2700/year… which makes little sense.
If I was a conspiracy theorist, I might speculate that it’s collusion between the legacy OEMs and the insurance industry.
But I’m not. What I actually think is going on with Tesla insurance rates is a combo of them being ‘high performance vehicles’ along with the insurance industry relying on outdated replacement cost data that is from peak pandemic pricing and not the current reality where used Tesla prices have dropped significantly over the past year or two.
Part of it could just be that the Tesla is considered a luxury sedan while the Ioniq isn’t. Could it also be because of Tesla’s poor service/repair system, which was part of the reason why Hertz’s Tesla experiment failed.
This is only tangentially related to your post, but today I found out that in Florida you don’t need insurance to ride a Vespa, as long as you have health insurance. There is no helmet law as well. Kinda blew my mind.
“Kinda blew my mind.”
Especially if you crash and have a head injury… LOL
“What are your friends saying about buying new/used cars?”
Nothing much. We’re much more preoccupied with our homes/houses… either stuff our houses need, or finding a new place and stuff like that.
I personally have been talking about car insurance and how it impacted my used car buying choices. In my area, for me to insure a used 2014 Tesla Model S that I can buy for around $18K, the insurance will cost CAD$3600/year.
Meanwhile a 2022 Hyundai Ioniq 5, which costs more than twice as much and can be even more expensive to fix, only costs only around $2700/year… which makes little sense.
If I was a conspiracy theorist, I might speculate that it’s collusion between the legacy OEMs and the insurance industry.
But I’m not. What I actually think is going on with Tesla insurance rates is a combo of them being ‘high performance vehicles’ along with the insurance industry relying on outdated replacement cost data that is from peak pandemic pricing and not the current reality where used Tesla prices have dropped significantly over the past year or two.
Part of it could just be that the Tesla is considered a luxury sedan while the Ioniq isn’t. Could it also be because of Tesla’s poor service/repair system, which was part of the reason why Hertz’s Tesla experiment failed.
This is only tangentially related to your post, but today I found out that in Florida you don’t need insurance to ride a Vespa, as long as you have health insurance. There is no helmet law as well. Kinda blew my mind.
“Kinda blew my mind.”
Especially if you crash and have a head injury… LOL
soccer/BYD/Euro joke… ok.
Say you’re a BYD executive. Why do you think of soccer every time you’re in the restroom?
Because when you’re in the restroom, European!
Also, if you’re playing Dungeons and Dragons… Bring Your Dice…
soccer/BYD/Euro joke… ok.
Say you’re a BYD executive. Why do you think of soccer every time you’re in the restroom?
Because when you’re in the restroom, European!
Also, if you’re playing Dungeons and Dragons… Bring Your Dice…
“as well as pig intestines, bladders and stomachs.”
Yummy!
“as well as pig intestines, bladders and stomachs.”
Yummy!
I’ve been trying to add a hybrid or EV to the fleet for a long time. I almost pulled the trigger on a Bolt before COVID when they were $9-10k as they appeared a good deal.
Recently they almost dropped down to $10k again, but then the clean vehicle dealer subsidy rebate became point of sale and all dealers instantly added $4k to their asking price. Yes, there is key-savvy, but basically the used prices have inflated so … it’s not the best deal.
And the biggest issue is that the only company repeatedly putting out solid 3 row vehicles that are hybrids is Toyota and their heavily used vehicles are $40k+ somehow.
So yes, I’d like to spend $200 less per month on fuel (I’ve done the math), but the options are pretty limited for a 6 year payoff on that.
I’ve been trying to add a hybrid or EV to the fleet for a long time. I almost pulled the trigger on a Bolt before COVID when they were $9-10k as they appeared a good deal.
Recently they almost dropped down to $10k again, but then the clean vehicle dealer subsidy rebate became point of sale and all dealers instantly added $4k to their asking price. Yes, there is key-savvy, but basically the used prices have inflated so … it’s not the best deal.
And the biggest issue is that the only company repeatedly putting out solid 3 row vehicles that are hybrids is Toyota and their heavily used vehicles are $40k+ somehow.
So yes, I’d like to spend $200 less per month on fuel (I’ve done the math), but the options are pretty limited for a 6 year payoff on that.
I don’t see myself buying a new car any time in the near future. My wife’s 2016 and my 2019 DD are reliable. I am considering putting my 2004 TJ up for sale and using the proceeds for a cheap, old Suburban or something. I have 4 cars right now and 2 of them get the majority of my driving.
I don’t see myself buying a new car any time in the near future. My wife’s 2016 and my 2019 DD are reliable. I am considering putting my 2004 TJ up for sale and using the proceeds for a cheap, old Suburban or something. I have 4 cars right now and 2 of them get the majority of my driving.
Checks out as the “newer” of our two cars turned 10 this week.
That’s all well and good for China until an inevitable wave of swine flu sends domestic pork prices soaring.
Checks out as the “newer” of our two cars turned 10 this week.
That’s all well and good for China until an inevitable wave of swine flu sends domestic pork prices soaring.
Well, we bought one….traded my high mile 2009 MINI Cooper Clubman S for a 2018 Audi Allroad with 14K on it.
Well, we bought one….traded my high mile 2009 MINI Cooper Clubman S for a 2018 Audi Allroad with 14K on it.
My friend who was in the market for a “reliable daily” asked me what to get that was manual, fun, reliable, economical, cheap and RWD. Given his current roster of ancient sports cars, I told him to forget RWD and just get a fuel injected hatchback. The bastard bought a Volvo P1800ES with Bosch D-Jetroinc.
My friend who was in the market for a “reliable daily” asked me what to get that was manual, fun, reliable, economical, cheap and RWD. Given his current roster of ancient sports cars, I told him to forget RWD and just get a fuel injected hatchback. The bastard bought a Volvo P1800ES with Bosch D-Jetroinc.
Cars and football are a thing for generations. BYD is trying to dislodge Audi for European soccer advertising. It has a long (Gooooal !?!) way to go for that to happen.
If BYD tried something like that in the US with NFL football commercialization to try replacing the Ford/Chevy truck juggernaut, then I’d start to reconsider our whole world order at that point.
Cars and football are a thing for generations. BYD is trying to dislodge Audi for European soccer advertising. It has a long (Gooooal !?!) way to go for that to happen.
If BYD tried something like that in the US with NFL football commercialization to try replacing the Ford/Chevy truck juggernaut, then I’d start to reconsider our whole world order at that point.
Nothing to do with BYD or Euro 2024, but this is the bestest soccer joke ever:
https://www.independent.co.uk/sport/football/international/pornhub-pleads-users-to-stop-uploading-videos-of-brazil-getting-f-ked-by-germany-in-the-world-cup-9594287.html
Nothing to do with BYD or Euro 2024, but this is the bestest soccer joke ever:
https://www.independent.co.uk/sport/football/international/pornhub-pleads-users-to-stop-uploading-videos-of-brazil-getting-f-ked-by-germany-in-the-world-cup-9594287.html
As a person who has been looking at buying, I’ll tell you some of what I’m thinking.
One, I think interest rate concerns are valid, but overblown. Between low/no interest deals, money off, and paying it down early, a smart buyer’s not really in a bad position if they’re a little flexible.
Two, I am not a flexible buyer. I don’t want a grayscale vehicle or something that is as uninteresting as my current vehicle. My car functions, so I’m not going to settle until I find a reasonable deal on something I actually want. Mostly I can find a reasonable deal or something I actually want. Really tempted by a first edition EV6 right now (the only way to get a factory yellow one), but $35,500 is still pretty high, given I could lease a brand new one for very little.
At least I’m not trying to buy a 3 row SUV. That’s a rough market right now.
Three, if you’re looking at EVs, there are lease bargains out there, and that’s the way to go. If you’re careful, you can even find the occasional deal on a PHEV, but those are few and far between.
Four, used vehicles are still not the deal they used to be. You can find some deals, but you have to be careful. We’re not back down to the CPO being the near-automatic value it used to be.
As a person who has been looking at buying, I’ll tell you some of what I’m thinking.
One, I think interest rate concerns are valid, but overblown. Between low/no interest deals, money off, and paying it down early, a smart buyer’s not really in a bad position if they’re a little flexible.
Two, I am not a flexible buyer. I don’t want a grayscale vehicle or something that is as uninteresting as my current vehicle. My car functions, so I’m not going to settle until I find a reasonable deal on something I actually want. Mostly I can find a reasonable deal or something I actually want. Really tempted by a first edition EV6 right now (the only way to get a factory yellow one), but $35,500 is still pretty high, given I could lease a brand new one for very little.
At least I’m not trying to buy a 3 row SUV. That’s a rough market right now.
Three, if you’re looking at EVs, there are lease bargains out there, and that’s the way to go. If you’re careful, you can even find the occasional deal on a PHEV, but those are few and far between.
Four, used vehicles are still not the deal they used to be. You can find some deals, but you have to be careful. We’re not back down to the CPO being the near-automatic value it used to be.
I wonder if at least part of the cast of Stereophonic was selected based on how similar their singing voices sound to Stevie Nicks.
Ew
I wonder if at least part of the cast of Stereophonic was selected based on how similar their singing voices sound to Stevie Nicks.
Ew
I can’t think of any friends that are currently in the market. I have a coworker who just bought a new Trax, he got a pretty good price and good financing. I’ve been shopping for months now as I can’t wait much longer to replace one of our aging vehicles. Prices and financing offers have finally reached a place where I guess I’m ready to pull the trigger. I don’t love what I’m seeing, but I can live with what I’m seeing and I kind of need to. Shit’s expensive, but getting a little better.
My brother just bought a car 2 weeks ago, he absolutely detested the experience. The dealer kept messing around with the payment and interest rate, the numbers kept changing on him. He’s already got a refi lined up.
He had held out a long as possible, but his Jetta wagon was literally falling apart. His mechanic finally had to tell him it was a safety hazard, and no way should he drive his kid in that car.