(Axios) morning email newsletter 4. Toyota's bet paid off Data: FactSet; Chart: Axios Visuals Toyota expects to notch an annual profit of more than $30 billion when its fiscal year closes in March, it said yesterday. Why it matters: That would be a record profit for the Japanese car giant, suggesting its decision to emphasize gas-hybrid vehicles, rather than fully electric models, is paying off, Matt writes. Context: Consumers seem reluctant to go fully electric, a reflection of anxieties about range, access to charging stations and affordability. Toyota has approached the all-electric vehicle market cautiously while maintaining its traditional strength in hybrid vehicles. The bottom line: At the moment, the stock market thinks Toyota has the product mix right. The company's shares are up nearly 50% over the last 12 months, while electric vehicle giant Tesla has struggled (perhaps in part due to a new chapter in the never-ending saga of Musk). + + + Umm (F) and (GM) both are up on the year too.
(Axios) U.S. automakers' existential EV problem Illustration: Shoshana Gordon/Axios American automakers increasingly view Chinese cars as an existential threat — even though Chinese-branded cars aren't even for sale in the U.S. yet, Axios' Joann Muller writes. Why it matters: For big legacy automakers like Ford and General Motors, budget-priced Chinese cars represent another Tesla-like seismic disruption. The big picture: The entire industry is worried about the magnitude of what Stellantis CEO Carlos Tavares calls "the China offensive." Companies that can't match China's low-cost electric vehicles "are going to be in an existential problem," Tavares told Bloomberg. Catch up fast: China is the world's largest and fastest-growing automobile market. Chinese cars have long been poorly made. But thanks largely to government support — plus access to cheaper batteries and labor — the country now makes attractive, affordable models, like the sub-$11,000 Seagull EV from BYD, the world's top seller of EVs and plug-in hybrids. Yes, but: Chinese automakers built too many factories, forcing them to look to foreign markets like Europe for continued growth. The U.S. could be next, where there's a big opening for budget-priced EVs, despite stiff Trump-era tariffs on Chinese cars. State of play: Ford, GM and others are reassessing their strategies and cutting budgets to stay competitive. Even Tesla is scrambling to keep pace with low-cost Chinese manufacturers by slashing prices and developing a cheaper EV by 2025. What to watch: Chinese cars are already being exported to Mexico, and BYD, Chery and at least one other Chinese carmaker are scouting plants there — meaning Mexico could become a back door for selling Chinese cars in the U.S.
Talks of cars, not buses. And backdoor is Mexico. US imported more from Mexico last year than any other country including China. Of course some of that was produced by Chinese subsidiaries. Though all companies do that.
you don't get the point. buffet will go to bat for byd into us market. having a prominent us ownership is a backdoor itself. same goes with apple and tesla, they at least create jobs in china so the chinese won't shut the doors.
I got your pointless point. BYD and others don't need Buffet (we capitalize proper names) to get them a backdoor currently. But if OrangeJesusMan comes back and shuts them down completely maybe then he can "grease the skids a little". + + + Mexico Unseats China as Top Exporter to US https://www.voanews.com/a/mexico-unseats-china-as-top-importer-to-us/7438109.html "While the United States' increasing reliance on Mexico for imports and a lessening in dependence on China might be held up as a prime example of friendshoring, much of the trend could also be driven by Chinese firms shifting production to Mexico because it has better access to U.S. markets."
no byd small cars won’t be onshore here anytime soon, regardless who is in charge. maybe newsom when he wins.
Glad you brought BYDDF up. Why? Because I gave up on this stock. I found it shortly after Buffet bought in, but at the time I didn't know that he had. https://www.elitetrader.com/et/threads/gba-presents-the-bare-essentials.365622/page-202#post-5584510 But for this post, I looked at where it was trading at. $23.70! Hmmmm It may be a huge buy down here. I had no idea it had gotten that cheap. More to follow.