How BYD Will Penetrate the U.S. EV Market Part 2 of How China is Winning the Global EV Market

Winning the global EV market is part of a larger story, namely that of winning the global trade market. Winning necessarily involves energy, economics, manufacturing, currency and trust - not necessarily in that order. What winning does not involve are violence and war. China has at first glance, pursued a strategy of “Winning Without Fighting” in gaining the crucial markets on which its manufacturing and export-based employment so critically depend.

By joining the “Quartet of Chaos”

China has enlisted in a cult of violence that can only lead to disaster, as Russia and its culture of violence is being taught...in Ukraine.

BYD

BYD (Build Your Dream) of China has used investment by such as Berkshire Hathaway, the Chinese government, knowledge of global trade, strategy, market research, style and culture to gain global markets. Bloomberg has explained all this in a riveting article entitled: BYD Is Winning the Global Race to Make Cheaper?EVs.

Innovation

China has solved the battery issue of EVs, creating the blade battery. It has carefully researched markets to learn “what the locals want.” China has invested in America’s weak link, our need to provide gainful manufacturing jobs that sustain the American Middle-in our employment deserts.

Since 2019, U.S, excellence in the manufacture of aircraft is a thing of the past, as Boeing continues to demonstrate. Stellantis, the Dutch Constellation of cars, now owns such iconic American automobile marques as Jeep, Ram, Dodge etc.

The most disturbing aspect of Bloomberg’s article about BYD is its leadership’s replication of history. Bloomberg: It’s a playbook reminiscent of those of Toyota Motor Corp. and Hyundai Motor Co., which grew out of Japan and Korea’s postwar industrialization; they exported for years before eventually setting up factories overseas. Like them, BYD started out with cheap cars but moved up the scale, As BYD makes its global push, it’s facing bipartisan anti-China sentiment in Washington that has echoes of the Japan Inc. hysteria of the 1980s, when the US feared being eclipsed as an economic superpower. The concern is that, as with solar panels and steel, electric cars are part of China’s larger economic strategy to amass political power through industrial and technological supremacy.

My Comment: Furthermore, the World Trade Organization’s ineptitude in making China the Country of Origin of such American inventions as the iPhone demonstrates a return to the days of tariffs and global trade stupidity:

Smoot-Hawley

Another disturbing thought is perpetrated by my own experience with the state of Kentucky and 4 contiguous New England states, Each U.S. state; each U.S. State’s Secretary of Commerce pursues an economic course that is best for that particular state, regardless of what is best for our nation

For Example:

The New Gold Rush

California figures largely in what will contribute to BYD’s success namely jobs and investment.

Bloomberg: Lancaster, California, lies about 70 miles north of Los Angeles, near Edwards Air Force Base and west of the Mojave Desert. After the 2008 housing crash, R. Rex Parris, the mayor of the city of about 170,000, went to China in search of cleantech investment to jump-start job growth. Stella Li of BYD:

answered his call.

Bloomberg: Although Parris is a Republican, BYD’s electric bus factory built in 2013 is tailor-made to appeal to California’s liberal values. BYD says the 550,000-square-foot plant helps cities across the US clean up their air while creating good, unionized jobs for Californians. It signed a community benefits agreement to give hiring preference to veterans, single parents and the formerly incarcerated. Stanford University is a customer, as is the city of Los Angeles.

BYD has benefited from government incentives, even if the full extent of it is opaque. “There is not a single major ‘private’ company that succeeds in China without the backing of the Party,” says Michael Dunne , a consultant and former General Motors Co. executive who spent more than two decades working in Asia. BYD is part of a wave of Chinese automakers fulfilling a government directive to combat a domestic economic slump by cranking up exports. But its bigger goal is localizing manufacturing around the world, so it can sidestep tariffs and become a household name in each market. “No company in recent memory has expanded globally at such a rapid clip as BYD,” Dunne says. “It sees a need to strike while the iron is hot, to move as fast as possible before others catch up.”

BYD is hoping to transcend geopolitics through the appeal of a plug-in hybrid sedan that can go 1,200 miles without stopping at a pump or a charger.

Continued

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