A tiny, low-priced electric car called the Seagull has American automakers and politicians trembling.
The car, launched last year by Chinese automaker BYD, sells for around $12,000 in China, but drives well and is put together with craftsmanship that rivals U.S.-made electric vehicles that cost three times as much. A shorter-range version costs under $10,000.
Tariffs on imported Chinese vehicles probably will keep the Seagull away from America’s shores for now, and it likely would sell for more than 12 grand if imported.
But the rapid emergence of low-priced EVs from China could shake up the global auto industry in ways not seen since Japanese makers exploded on the scene during the oil crises of the 1970s. BYD, which stands for “Build Your Dreams,” could be a nightmare for the U.S. auto industry.
“Any car company that’s not paying attention to them as a competitor is going to be lost when they hit their market,” said Sam Fiorani, a vice president at AutoForecast Solutions near Philadelphia. “BYD’s entry into the U.S. market isn’t an if. It’s a when.”
They are a threat when they’re sold well below cost due to the Chinese government’s massive subsidies which make it impossible for any other non-Chinese manufacturer in the world to compete with them.
Sounds like what buyers want is cheap cars then.
Yeah just like they want cheap products when Walmart comes to town and before too long the local economy is in the crapper as all the town’s revenue gets funneled to Arkansas.
What you’re advocating for is a race to the bottom just so you can buy one (maybe two!) new car(s) instead of an affordable used car like most people do. Let China sell their cars here with the same subsidies that every other company qualifies for on a level playing field.