New Energy Vehicles (NEVs) in China

S

Sincho

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sndef888 said:
I wonder if it would be a good idea for the Chinese government to push for local JV partners to sell their stake to the foreign partners.

One of the biggest factors holding these foreign companies back from exporting via China is because they only get 50% of profits if they do so.

At this point, it's pretty pointless for local companies to continue holding stakes in these joint ventures considering they don't add anything nor absorb any knowledge. Just give them 75/100% stake and watch all the unused factories start becoming major export hubs
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I think the limits on foreign investments in automobile joint ventures have been abolished since 01/01/2022. The West were clamoring for this and they got their wish.

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In fact the foreign partners of the JV were salivating at this prospect. But since then with the rise of EV sales, the market in China has fallen out for the legacy automakers and I think they are not so keen anymore to take 100 % stake in the JV.
 
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SanWenYu

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tphuang said:
minimal. All it has committed to is people working on a project. Not a big deal to secure such a large contract
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We don't know how much the sunk cost by CATL is in this case. Let's hope it's minimal.

But the point of such contract term is to prevent such loss, more than to recover it.

The parting fee term will be a nice reminder to all the parties in such deals about the risk of doing business in the US given the politic atmosphere. The US is no longer a place worth being reckless for market share.
 
Maikeru

Maikeru

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SanWenYu said:
We don't know how much the sunk cost by CATL is in this case. Let's hope it's minimal.

But the point of such contract term is to prevent such loss, more than to recover it.

The parting fee term will be a nice reminder to all the parties in such deals about the risk of doing business in the US given the politic atmosphere. The US is no longer a place worth being reckless for market share.
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Surely the answer is to set up operations in Mexico and export to US through the NAFTA replacement.
 
tphuang

tphuang

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SanWenYu said:
We don't know how much the sunk cost by CATL is in this case. Let's hope it's minimal.

But the point of such contract term is to prevent such loss, more than to recover it.

The parting fee term will be a nice reminder to all the parties in such deals about the risk of doing business in the US given the politic atmosphere. The US is no longer a place worth being reckless for market share.
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And that's for catl to put in. They seem to be doing very well.

In business, you have to take risks. And frankly, they are losing very little here.

But sure, let's give up a large market and let competitors prosper because you are worried about possibly losing some small investment.
 
tphuang

tphuang

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have people kept track with the news? CATL said there is no stoppage on this project

https://twitter.com/i/web/status/1706793042114482377
Denza N7 ADAS details. Surprised frankly by the 3 different versions here with such different hardwares.

the computation platform is interesting. To me, it seems like BYD's first step toward creating its own ADAS chip
 
supercat

supercat

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Maikeru said:
Well, not in China but involving CATL:

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Pretty much inevitable I think, surprised it even got this far.
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The gist of the Detroit News article seems to be that this is a temporary pause related to the UAW strike. In fact, UAW is accusing Ford for using this "pause" to put pressure on them.

sndef888 said:
I wonder if it would be a good idea for the Chinese government to push for local JV partners to sell their stake to the foreign partners.

One of the biggest factors holding these foreign companies back from exporting via China is because they only get 50% of profits if they do so.

At this point, it's pretty pointless for local companies to continue holding stakes in these joint ventures considering they don't add anything nor absorb any knowledge. Just give them 75/100% stake and watch all the unused factories start becoming major export hubs
Click to expand...
At this point, I don't know how many foreign legacy automakers even want to own a majority of their joint ventures. Many joint ventures are not doing so greatly on the cutting-throatily competitive Chinese auto market currently. According to Yicai Global, the average capacity utilization rate for the joint ventures barely reached 42% on average during the first half of 2023.
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tphuang

tphuang

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tphuang said:
BYD reaches deal with Jabil Inc to sell its mobility business

https://twitter.com/i/web/status/1695959851451506703

It's unclear to me what they are buying since this is done with BYD electronics and only smartphone components is mentioned here. Jabil does have some auto sensor/lidar tech. It would make more sense to me if they buy the business related to that.
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looks like the deal is for Jabil's assets in Chengdu and Wuxi, including all current contracts there
 
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