Thanks for this information — especially interesting to those of us in California. We’re expecting the Volvo EX30 (fully ev to compete with Tesla) sometime in late summer.
Kevin Wamsley has a wide-ranging channel “Inside China Business” on YT that is required viewing imho. He pointed out that China’s comparative advantage in EVs is based in battery technology, and in the precision manufacturing of components and the finished vehicle. But China does not have the ability to sell and service these vehicles in other markets — and therein lies an opportunity.
After all, BMW manufacturers its vehicles (its SUVs in South Carolina) and makes a manufacturing margin (profit). But it does not own its dealer sales and service network — the dealers rely on BMW for product and parts, and promotion. The dealers have their own p/l statement for their investors. Wamsley asks the question: why wouldn’t the Europeans want to be the effective “dealer network* for Chinese EV manufacturers? Without the sizable investment in technology development or acquisition, licensing fees — in short, the demands of manufacturing a cost competitive vehicle — why not still share in the profits of the growing world of EVs?
This may be coming to pass. Earlier this month, Stellantis announced that it will sell and service Chinese EVs from a company called Leapmotor, in which Stellantis also took an equity stake.
Thanks for this information — especially interesting to those of us in California. We’re expecting the Volvo EX30 (fully ev to compete with Tesla) sometime in late summer.
Kevin Wamsley has a wide-ranging channel “Inside China Business” on YT that is required viewing imho. He pointed out that China’s comparative advantage in EVs is based in battery technology, and in the precision manufacturing of components and the finished vehicle. But China does not have the ability to sell and service these vehicles in other markets — and therein lies an opportunity.
After all, BMW manufacturers its vehicles (its SUVs in South Carolina) and makes a manufacturing margin (profit). But it does not own its dealer sales and service network — the dealers rely on BMW for product and parts, and promotion. The dealers have their own p/l statement for their investors. Wamsley asks the question: why wouldn’t the Europeans want to be the effective “dealer network* for Chinese EV manufacturers? Without the sizable investment in technology development or acquisition, licensing fees — in short, the demands of manufacturing a cost competitive vehicle — why not still share in the profits of the growing world of EVs?
This may be coming to pass. Earlier this month, Stellantis announced that it will sell and service Chinese EVs from a company called Leapmotor, in which Stellantis also took an equity stake.