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- Are Chinese cars here? Plus, the most crash-prone cars and Toyota drama.
Are Chinese cars here? Plus, the most crash-prone cars and Toyota drama.
Contrasting opinions about Chinese cars in the US showcase how unclear the relationship's future is. Still, the reality is that Chinese cars are already here.
Issue #124
Happy Tuesday!
Today, we’re discussing whether Chinese cars have an actual chance of making it into the US. Or, wait, are they already here?
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In The Know
People say Chinese cars will not succeed in America. But they're already here.
China is the biggest automotive region in the world from any angle.
It's the biggest automaker by a lot. As this article explains, it basically triples US automotive production.
It's also the biggest market. Out of the 30 million cars China produced in 2023, many remained within the country to quench a growing demand.
In fact, while it has been the number-one automaker since 2008, it wasn't until 2023 that it overtook Japan as the leading automotive exporter. This stat surprised us, and you can read more here.
China's exporting efforts began in underdeveloped countries and regions. As this article explains, Southeast Asia, Africa, and Latin America were great because they were cheap, and local safety regulations were lax.
Once they tried to enter Europe, their quality (or lack thereof) came to light. This article remembers such a failure of a crash test.
The country has come a long way from that, and now, some consider it a threat.
The danger comes in many tiers, from national security to competition. Many fear US automakers won't cope with China's ability to produce and woo buyers.
Just ask General Motors how they've had to back out of China, a market they once dominated.
We've already discussed how cars can track our lives, and Chinese tracking could pose a serious security threat.
That's why, as this article recalls, there have been active efforts to ban Chinese cars since long ago.
This reputation has turned Chinese cars into the stuff of legend. There are countless videos of people trying (and succeeding) to import them to the US. This is one of our favorites.
Here's another article.
Not only that, but executives in the automotive industry believe it's a reality. 75% of them think it's only a matter of time.
But there's a problem with all this discussion: we already have Chinese cars in the US. So, why all the fuss?
That's right. Automakers have been selling Chinese-made cars for years. This year marks the 10th anniversary of the first one to reach American shores: an elegant, upper-scale sedan.
Consumer Reports even wrote this article highlighting what they have reviewed.
It's also not a small number. American car buyers purchase from 80,000 to 108,000 Chinese-made cars every year. The interest is here, as this article explains.
However, it's unlikely that this number will grow exponentially, and it has nothing to do with tariffs.
Americans buy these because of brand loyalty. They like Polestar, Volvo, and Lincoln and shy away from car brands that sound too foreign.
Can you name anyone who has purchased a VinFast? It sounds more like an app than a car.
The same applies to brands such as Xiaomi, Xpeng, and Geely, regardless of their quality or design.
As this article explains, Americans will only buy Chinese cars if they have a familiar name on the badge. Given the shifting landscape, that's going to be harder.
So, while Chinese cars are already here, the American market won’t allow many of them.
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