I feel like I’ve seen this one before. Another Chinese car manufacturer is reportedly making big plans for America, and it’s an EV innovator. Nio has a reasonably appealing lineup of electric cars and crossovers, the unique advantage of battery swapping, and some seriously impressive tech. However, it also has several things working against it, and I’m not just talking about the federal EV incentive sourcing and production requirements.
Oh, and speaking of EVs, the standard story format for electric vehicle fires goes something like this: yadda yadda fire, yadda yadda thermal runaway, yadda yadda heaps of water, yadda yadda fears of re-ignition. It’s been covered to death, to the point where it isn’t novel. Soak the thing like one of those capsule dinosaurs you got in loot bags as a kid, keep it away from stuff, and everyone will probably be fine. However, what happens when a whole electric vehicle factory catches fire? Well, a city in Quebec is reportedly grappling with just that. All this and more in today’s edition of The Morning Dump.
Chinese EV Maker Nio Wants To Sell Cars In America
In America’s shift to electrification, glory, riches, and market domination is all up for grabs. Who could blame Chinese EV makers for wanting part of it? Reuters reports that Chinese electric automaker Nio is interested in entering the American market come 2025, and is exploring all sorts of avenues to do so.
Speaking at Reuters Events Automotive USA 2023 conference, Ganesh Iyer, chief executive officer of Nio USA, said the company is considering “any kind of partnerships” in North America.
This comes after quotes from NIO’s US CEO saying the brand wants to enter the U.S. market. From Asian Market-focused website Nikkei Asia:
Nio will import premium electric cars made in China to the U.S. rather than attempt to qualify for tax incentives by setting up local production, the Chinese automaker said.
Ganesh Iyer, the EV maker’s CEO for the U.S., laid out the vision for the American market at the NextChina Conference hosted by the China Project news outlet in New York on Thursday. Nio aims to sell its first car in the U.S. by 2025 as part of a goal to expand to 25 countries and regions.
We’ve heard similar rhetoric from Chinese manufacturers before, but if Nio defies the odds, what sorts of vehicles would it sell over here? Or rather, what Nio vehicles might sell well in America?
The first one that springs to mind is the Nio ES8, since it’s six-seat three-row crossover that could slide into a popular market segment that’s underutilized in the EV space. After all, if people are going nuts for the Kia EV9, another three-row option could scoop up plenty of sales.
With integrated ottomans for the first- and second-row seats, the interior of the ES8 looks like a deeply comfy place to be. Also, shoutout to Nio for installing a proper center console in the second row, rather than some basic, flimsy piece of plastic.
Another option is the Nio EC6, a two-row coupe crossover that should get the people going. Love them or loathe them, crossover coupes are popular, and with a 70 kWh or 100 kWh battery pack, this thing should slide into the popular EV crossover market with a style-based USP.
There’s plenty of layering going on inside the EC6, and some nice usage of tone-matched plastic inserts to blend with contrast colors. The floating center console hides a massive storage area underneath it too, perfect for bags and whatnot.
Alright, so maybe you don’t want something as deeply unserious as a coupe crossover but still desire something with the EC6’s footprint. No worries, Nio also offers the ES6, a far more conventional electric crossover.
Unsurprisingly, the cabin of the ES6 is pretty much identical to the one in the EC6, but it’s still a relatively handsome place with a unique giant paddle in the console. Like all of Nio’s vehicles, the ES6 supports battery swapping, a complex process that could actually be useful in North America, given our massive distances.
The Nio ET7 isn’t massively exciting to look at, but it should go like the dickens. With up to 644 horsepower on tap, figure a zero-to-62 mph time of 3.8 seconds, all while being tantalized by impressive technology from a 23-speaker 1,000-watt sound system to a semi-autonomous driving system with built-in LiDAR.
As the ET7 is Nio’s flagship sedan, it shouldn’t be surprising that the interior is covered in neat stuff. The dashtop is sueded, the wood is white, and the steering wheel is an unusual two-spoke design. Granted, the interior styling is terminally boring, but Tesla’s doing the same minimalistic thing and seems to be selling cars just fine.
Alright, so the ET7 might not get enthusiasts’ pulses racing, but here’s something a little more enticing. The Nio ET5T is an electric station wagon with up to 480 horsepower. Zero-to-62 mph in the top trim? A cool four seconds flat. Oh, and here’s something even more interesting: The 62 mph to zero braking distance is claimed to be a scant 111.2 feet.
The ET5T would actually be cool to have in America, but Nio faces an uphill battle due to consumer sentiments, market positioning, and even historical results.
Despite the frosty state of American-Chinese relations, history has shown that Americans will buy anything if it’s cheap and decent enough. After all, Japanese cars made headway in America despite anti-Japanese sentiments in the decades following World War II, partly because the cars sipped fuel, were well-built, and offered decent value. However, Nio isn’t exactly the cheapest brand on the block, and once you roll the costs of homologating vehicles for the U.S. market into every car sold and subtract the federal EV incentives because China-built vehicles wouldn’t qualify for them, pricing might not be competitive enough to sustain sales.
Then there’s the nearly impeccable track record of Chinese automakers aspiring to enter the American market, then pulling out. Aside from a few E6 trial cars, BYD’s passenger car lineup never made it to America. Chery wanted to come to America but didn’t, and neither did Brilliance or SAIC. Sure, several automakers have sold and currently sell Chinese-built cars in America, but these are Western automakers with the know-how, distribution networks, and brand recognition to sell in America. The bottom line? Don’t be surprised if Nio’s announcement is a nothingburger.
Who Cleans Up When An Electric Vehicle Factory Catches Fire?
The uniqueness of electric vehicle fires is fairly well-known, but here’s a hypothetical nobody saw coming: What if an electric vehicle factory catches fire? Sure, it sounds stupid, but that’s apparently exactly what just happened to an electric tractor plant in Quebec. Radio-Canada, the francophone arm of the CBC, reports that an Elmec EVduty factory that built autonomous electric Erion tractor prototypes burnt to a crisp on Tuesday, and residents nearby are already worried about the fallout. Before I go any further, it’s worth noting that a cause for the fire hasn’t been announced yet, but as Radio-Canada details, the aftermath is anything but settling.
The fire that destroyed the Elmec EVduty factory on Tuesday in the Carrefour 40-55 industrial park in Trois-Rivières threw debris several kilometers. Some of this debris is now found in residential areas, where citizens are wondering how to get rid of it while worrying about their potential toxicity and the lack of communication from the authorities, who are passing the buck.
According to Radio-Canada, nobody has officially stated whether or not the debris is toxic, and residents are concerned that plans for debris removal haven’t been announced yet. While industrial fires in general aren’t exactly a recent development, the Elmec EVduty fire is a new frontier that the electric transition will have to reckon with. Lithium battery fires are a bastard to put out, but when a single EV goes up in smoke and its battery pack enters thermal runaway, the thermal event is relatively localized. Scale that up, though, and things can get a bit less local.
It’s just common sense that we should have a series of best practices and an environmental cleanup regimen for the unlikely event that an electric vehicle factory catches fire. Not only would a plan assuage fears of residents living near these plants, it would let governments act quickly should something similar happen again. I wouldn’t be surprised if whatever methods come out of this incident become standard practice across much of North America, given the rarity of such an incident. Whatever happens, we’ll be watching this one closely.
Used Car Values Continue To Fall
The great unwind continues. Thanks to used car wholesale value declines in October, the Manheim Index of used car wholesale values now sits at the lowest it’s been since April of 2021, wiping out the slight uptick in values we saw during the UAW strike. While Matt delved into vehicle supply on yesterday’s Morning Dump, I’d like to take a minute to talk about pricing, as that’s where deals are made and lost.
While retail pricing typically lags wholesale pricing by a number of weeks, there’s some data out there suggesting a lopsidedness between what dealers are paying for cars at auction and what consumers are paying for cars at dealers, in that some savings aren’t being passed on. Surprise, surprise. As per the Manheim Index:
Assessing retail vehicle sales based on observed changes in advertised units tracked by vAuto, we initially estimate that used-vehicle retail sales in October were down 2% compared to September, and the year-over-year comparison with 2022 worsened again. Used retail sales are estimated to be down 4% year over year in October. The average retail listing price for a used vehicle declined 0.7% over the last four weeks.
On a more positive note, Cox Automotive, the people behind the Manheim Index, isn’t the only analytics firm seeing declines. Black Book saw higher than expected seasonal depreciation last week, with a weekly price decline of 0.95 percent compared to the average this year of 0.67 percent. At this point, there’s nothing indicating that the slide won’t continue, so sit back and relax, because what goes up must always come down.
Choppy Waters For Polestar
As mainstream manufacturers brace for an EV demand slowdown, perhaps few sold in America are quite as vulnerable as Polestar. After all, this is a brand that isn’t a startup, yet it has zero combustion-powered cars in its lineup to fall back on, isn’t a low-cost brand, and sports a dealer network that isn’t exactly huge. Indeed, Reuters reports that Polestar has downgraded both its sales and margin expectations for 2023:
Polestar, which operates in 27 markets globally, said it would now deliver about 60,000 vehicles this year, down from between 60,000 to 70,000. It had reiterated that forecast just last month after slashing the target in May from the 80,000 it had estimated earlier.
The U.S.-listed company, founded by China’s Geely and Volvo Cars, also said it would achieve a gross margin of 2% in 2023, down from its prior 4% forecast.
Is there light at the end of the tunnel? Both Polestar and shareholder Volvo seem to think so, with the latter manufacturer issuing a media release with some lofty claims for the 2025 fiscal year.
In light of a fast-changing operating environment, Polestar has introduced a strengthened business plan that reorients a path to profitability by prioritising margin progression over volume. For the fiscal year 2025, Polestar is targeting a gross margin in the high teens with a total annual volume of approximately 155,000-165,000 cars. This is expected to be achieved through a richer product mix, with four models in production, reduced cost structure and refocused approach to key markets including a new joint venture in China and measures to improve profitability in the US business. Polestar has already implemented cost reduction measures announced earlier this year around headcount reductions and continues to advance active cost management efforts.
So, let’s check the match here. Polestar is looking to more than double its volume and roughly nonuple its margins in two fiscal years? I know the Polestar 3 crossover will go a long way to helping sales, seeing as many customers aren’t seeking sedan-shaped things anymore, but those are some wild expectations.
Your Driver Is On Their Way
If you’ve booked a taxi lately, you’re probably well aware that the current Toyota Camry is, well, old. Six years old, to be precise, which means it’s just about due for replacement. Thankfully, a new one is right around the corner, and Toyota has dropped a hint that should get snowbelt dwellers absolutely stoked: It will be available as an all-wheel-drive hybrid.
With a new Honda Accord already on sale and a refreshed Hyundai Sonata incoming for 2024, now’s the perfect time for Toyota to unveil a new, more competitive Camry. If you’re the sort of person who’s into midsize sedans, set an alarm for Nov. 14, because that’s when we’ll see all of the new Camry instead of just a cropped-in look at the trunk lid.
Your Turn
The Toyota Camry is a popular enough car that virtually everyone has some sort of Camry story. Whether it was the cheap sedan that didn’t quit on you, the dependable family hauler, or your first experience with a hybrid powertrain in a normal-looking form, I’d love to hear your Camry story.
(Photo credits: Erion, yonkershonda licensed under CC BY-SA 2.0, Polestar, Toyota)
This was my favorite Camry story:
https://www.theonion.com/toyota-recalls-1993-camry-due-to-fact-that-owners-reall-1819577805
My wife’s best friend has a 2015 Camry. The touch screen on the infotainment stopped responding to touch in one corner after the radio warranty expired. She lived with it until she got a new phone. She couldn’t pair the phone with the radio because that corner of the screen was dead. The dealership wanted $1,600 to replace the whole unit. I found a digitizer “open box” on Amazon for $12. In less than two hours, I was able to remove the radio take it apart, swap the digitizer and get it all back together and in the car. The $12 screen has so far lasted longer than the original.
Apparently this is a very common issue with Toyota’s of this era. It’s a cheap fix too!
I wish NIO the best, I actually like the look of these. Contrasting colors in an interior! Wish it was not all touch screen though, much prefer buttons and knobs for common functions. Still think the old Toyota cruise control dongle is the best I’ve ever used, better than steering wheel buttons.
So Nio is going to bring an expensive, explicitly Chinese-made EV to the US? Good luck with that.
Polestar has a huge brand recognition problem. I was at a winter festival with some friends last year and Polestar apparently sponsored it so one of their cars was on display. I had to explain to my friends what it even was because they’d never heard of Polestar.
I wish Nio or some other Chinese company would start selling cheap new cars here already. Fuck the gougers that raised prices enough to make room for China. It’s their fault. The Chinese will do ANYTHING they have to, and they’re not afraid of stupid shit like tariffs. They can undercut ANYBODY.
My family currently has three and used to have four Camrys. I joke that we have an Enterprise rental car lot since the 03, 05, and 07 are gloss black while the 02 was brown.
Roster:
2002 (sister) : Bought at 155k miles, given away at 231k after she bought an Impreza
2003 (me) : Bought for my dad at 47k miles, given to me at 180k and currently has 192k
2005 (Mom) : Bought showroom new December 2004, has 301k miles
2007 (Dad) : Bought used at 98k miles, took $3500 in work after purchase to be reliable
Currently the 2007 lacks ‘the dent’, but the others have damage on the corners for various reasons (’02 and ’03 have corner scratches, ’05 has the full dent).
A story is that I got pulled over for speeding and was let off with a warning, with the provision I not imitate an officer again (for perspective, the car is black w/o hubcaps and I was wearing a blue t-shirt). I hope the officer was joking because that was really stupid if not.
A more boring one is the rear left turn signal for the ’03 failed while on vacation, meaning hand signals were used driving home. The next day, I went to check the bulbs only for the signal to start working again. It still has the same bulbs 3 years later.
My first Camry was a 2006 LE 4 cyl – loved/hated it. Reliability, build quality, and materials were top notch. It was severely underbraked when loaded (rear drums) and just meh dynamically. Sipped fuel on my long commute and never needed anything. Traded in on a 2010 Acura TSX 4 cyl that outperformed it in all ways and was just as reliable. Currently have a 2014 Camry SE Hybrid that has addressed all the shortfalls of the earlier model. I get 40 mpg regularly and have racked up close to 225000 miles with nothing beyond routine maintenance. I expect to hit or surpass 300000 in this car. Very durable car.
FYI – wife is still driving a 2007 Corolla that is still in good condition despite the PA road salt. Honestly, the 2007 interior quality is better than 2014 – much visible cost cutting.
My cool Camry story is that my family has never owned a Toyota. Not really a conscious decision, but just what it is. My parents, wife’s parents and now us. Nary a Toyota to be found.
Honda, yep. Nissan, sure. VW, Audi, the domestics, Check, check, and triple check.
Sort of odd when I think about it.
My family has never bought a Toyota either, but they shopped the first two generations of Siennas at each of the 3 minivan purchases, and sometimes casually in between – yet never bought. Probably because of price, since they bought domestic or Hyundai instead. Probably should have bought the Sienna the very first time around and then wouldn’t have needed to shop for vans again for a long time.
European reviewers generally have high praises for Nio. DW drove one in arctic condition and came back impressed.
https://www.youtube.com/watch?v=C13SA9QZC7Q
I’m going to say something that I’m sure I’ll get flamed for-but I have a bit of an irrational distaste for super high volume sedans like the Camry and Accord. Do I think they’re bad cars? Of course not, they’re objectively great cars.
But there’s just something so painfully basic and NPCish about owning one. Is a Camry or Accord ever anyone’s first choice, or is it something people just buy because it’s simple, familiar, and available? There’s just this overwhelming feeling of complacence and settling that comes to mind for me whenever I interact with them, and I see double digit quantities of them every single commute.
I guess I just don’t really have any enthusiasm for them, and before anyone suggests that I don’t appreciate basic, simple cars I definitely do. You people have vanpilled me beyond recognition at this point, I get stoked for wagons, etc. But I just don’t have any room in my heart for a Camry…and if I’ve gotten to the point that I feel the need to buy one and settle into that sort of suburban middle/upper middle class malaise that I can’t seem to separate them from you all will need to have me committed.
This is also why I legitimately like the Toyota Crown. It’s also a shameless appliance but at least they went out of their way to try to give it some character. Maybe if Toyota gives us a GR Camry I’ll start to feel differently. I will always respect the Camry, but I’ll never, ever be excited for one.
For me, the shift to crossovers makes the Camry something more special than it used to be. When I see a Camry, I know that person chose a sedan instead of a Corolla Cross or CR-V or whatever else. I’m a little excited for it because Toyota is choosing to refresh it and keep offering it. I kind of expected them to just ride out this generation and let it go.
But I get it. It’s hard to get very excited about something designed almost specifically to be generic.
Hard agree here. It’s still the same safe choice, but something about picking a sedan instead of a CUV makes me think that “hey this guy is getting just want they need and want and only what they need and want. Doesn’t need to sit up high and give off any airs of being off road ready or anything”
Isn’t that crazy? Cause I feel the same way.
Crossovers are just so ubiquitous and goddamn boring to drive that genuinely any sedan seems quirky and fun these days. I drove a freaking Malibu for a few weeks while my wife’s Forester was being repaired and I was like “whoaaaaaa a car!” It wasn’t the most engaging sedan, but it was automatically 100x better to drive than anything like a Forester is.
all hail the vanpill
I actually have an answer for you…(I’ve mentioned before I have an Accord and have had a couple late 80’s Accords w/ flip-up lights/5-spd) Basically, at this point I have chosen them because I like them, they are reliable/efficient, and some nostalgia (was family car in the past)
but just have not gotten to the point where I can get the enthusiast vehicles that I actually want…so I completely agree with you and want a lot of the vehicles mentioned on this awesome site (can’t wait to get a whole garage or junkyard full ha ha)…so yeah, just had to comment
No flames here, I feel the same way about the Camry as a car for me personally. However, I have no compunction about recommending a Camry, or a Corolla, or a RAV4 for the average person out there who simply needs a transportation appliance. For that purpose they are nothing short of awesome.
An Accord was my first choice – in fact, I drove 175 miles and dealt with a dealership so sleazy it should have sold Kia, Nissan and Hyundai, but that was because it was a stick-shift, 2-door V-6 coupe, and they had just quit making them forever.
It is simple and familiar, but reliable as hell and very quick for an unassuming Genericmobile. But even a Camry sedan is more interesting to me than yet another cookie-cutter mid-size crossover. At least I can recognize a Camry, which is more than I can say for all those identical SUV’s.
> Is a Camry or Accord ever anyone’s first choice
Hell yes.
Now if we’re talking about the Cobalt or endless supply of identical GM midsized vehicles, sure. But the Accord is an excellent car and the v6 are legit desirable.
My family has owned one 1 Camry variant, the Solara. My mom got it in 2004 I believe. Before that my family pretty much only had American cars (mostly GM leases for a company car). Since the Solara came into the family there has only been 1 American car any of us have bought/lease since(Fiesta ST).
the only Camry I have ever really had any direct interaction with was a used Solara 4 cylinder. Ex wife was trying to trade in her Alero after we separated, but I was still on the title, so she asked me to come and sign off on the title so she could buy a then newish Mercury Cougar, which I immediately suggested that was not the best idea. She was looking for something sporty, but mostly in looks alone. And that solara was not a convertible, so I suggested it instead. She never thanked me, but I think she drove it for a good long time after.
My first car was a 95 Camry sedan with the 4 banger and the auto transmission. That car lasted forever with hard abuse. My brother drove it without coolant for a week. I got the head resurfaced, and it ran fine for over another decade. When the key wouldn’t turn the ignition, it was because the key wore out; not the tumblers.
It was finally killed after being given to a friend for free when I upgraded to an Avalon. Someone in an F250 pulled out in front of him and he t-boned it hard enough that the airbags went off, the radiator broke and dumped all the coolant out, and the hood crumpled hard enough it wouldn’t open. He drove it 6 more months with no coolant in it and no maintenance because the hood wouldn’t open. When he finally got a new car, the Camry still drove itself to the scrap yard. That poor car made it 24 years and over 250,000 very hard miles before it died.
My Camry story? About 15 years ago I had a company assigned Ford Escape. I walked out to the parking lot and hopped in it to get some lunch. Then I backed directly into the rear corner of my coworker’s Camry and gave that sucker a perfect Camry Dent. When I tracked her down so I could give her the insurance info, she dejectedly told me she just had the bumper replaced because somebody else had punched the same dent in the same corner.
Gotta say, you have a very appropriate user name…
A Camry makes too much rational sense, and I’m an idiot, so I’ve never owned one.
My parents bought a Camry hybrid when they retired though, and they seem to like it (my Mom had preferred an Avalon or ES, but the choice was made easier by one single Camry and one single Supra being the only two cars in stock at the only dealer in the area not pricing above MSRP)
My only memorable thought about any Camry is when parents had a rental last year and I had to move it. Holy cow the front doors are wide and they open practically 90 degrees! With many older people driving them I made a mental note, DO NOT PARK NEXT TO A CAMRY, else door dings on my vehicle are guaranteed.
I think a Camry convinced my parents to become Toyota people. After decades of domestics, my mom bought a Camry and they really liked it. So my dad’s next pickup was a Tundra and then mom traded her Camry in for a 4Runner when she wanted something that rode higher. They take them in to the dealership for all service, including tires. It’s an hour and a half drive and my dad has a well-equipped shop and has done his own work on vehicles most of his life, but something about Toyotas has them convinced to use the dealership for everything. They even buy the extended warranty (and used it with the Tundra).
I think that my mom should have kept her Camry because they take long drives to visit my sister and her kids (as the non-grandkid child, I get far fewer visits). But they’re happy with the 20 mpg they get on the highway with the 4Runner, so it works for them.
I’ve never been in a Camry. My parents drive an Avalon, and that’s kind of a Buick-ized Camry. It’s very nice.
Also, can we really call this The Morning Dump today, seeing as it dropped after noon? If I waited this long for my morning constitutional, there would concerns.
It’s still morning on the west coast. I’m on Mountain Time, and it’s still morning here, too.
When did constitutional change its meaning?
1682.
Never owned a Camry, I also was just a Corolla owner. But I have ridden in them many times in life. They are great at moving humans from point A to B.
I have never driven a Camry but I consider myself very grounded. To the ground.
I was once in the back of a Camry and threw up into a grocery bag.
I was a service advisor/oil change guy at a Toyota/Chrysler dealer for a time, I don’t recall any Camry’s coming in with issues, just general service. Several Tacos, occasional Corolla, the odd Paseo convertible, even a Geo Prizm(Corolla) once, but no Camrys.
Surprisingly, I’ve never owned a Camry. Or rented one, that I can remember. I’ve changed the oil in a zillion of them (4 cylinders are easy but the oil filter on the early V6 was a bitch to get to), and I think my dad had one briefly after he sold his SHO, but that’s it.
I have owned a Corolla, and a Chevy Nova that was basically a Corolla in disguise. And a Toyota pickup briefly (still don’t get what all the fuss is about with those). That’s the extent of my first-hand Toyota experience.
Camry is too fancy for us, we just have Corollas.
I’ve never owned or even to my memory driven a Camry, but I did formerly work in a factory that made parts for them, among other cars.