American automakers and politicians are quaking over the Seagull, a small, inexpensive electric vehicle.
The car, which was introduced by Chinese automaker BYD last year, costs around $12,000 in China, yet it rides smoothly and is built with craftsmanship comparable to that of electric cars made in the United States that cost three times as much. A less capable model comes in at less than $10,000.
Tariffs on Chinese automobile imports will probably keep the Seagull out of America for the time being, even though it presumably would fetch more than $12,000 if it were brought in.
However, China’s quick growth in the production of affordable EVs has the potential to upend the global car industry in ways not seen since the arrival of Japanese manufacturers amid the 1970s oil crises. “Build Your Dreams,” or BYD, may prove to be a nightmare for the US auto industry.
As a competitor, “any car company that’s not paying attention to them is going to be lost when they hit their market,” stated Vice President Sam Fiorani of AutoForecast Solutions, which is located near Philadelphia. “BYD’s arrival in the US market is a given. There is a when.
Laptops 1000Politicians and businesses in the United States already view Chinese EVs as a significant threat. Tuesday is anticipated to see the announcement of 100% tariffs by the Biden administration on Chinese-imported electric vehicles, which it claims are a threat to American jobs and national security.
According to a study published by the Alliance for American Manufacturing, Chinese EVs that receive government subsidies “may end up being an extinction-level event for the U.S. auto sector.”
Elon Musk, the CEO of Tesla, warned industry analysts earlier this year that, in the absence of trade obstacles, Chinese electric vehicles (EVs) “will pretty much demolish most other car companies in the world.”
EVs are typically expensive and targeted at a higher-income niche market outside of China. Just as governments in the United States, Europe, and many other countries are pushing for a move away from gasoline-powered automobiles in order to combat climate change, Chinese firms that are not yet well-known worldwide are providing accessible solutions that will appeal to the general public.
“EVs were not made more democratic by Western markets. “They gentrified electric vehicles,” stated Bill Russo, the originator of the Shanghai-based consultancy Automobility Ltd.
Furthermore, gentrification reduces the size of the market. China is all on democratizing electric vehicles, and it is this that will eventually make Chinese businesses successful when they expand internationally.
A business named Caresoft Global disassembled and reassembled a bright green Seagull that its China office had bought and brought to the United States inside a massive garage in an industrial location west of Detroit.
Terry Woychowski, the president of the company and a former chief engineer for General Motors’ large pickup trucks, called the car a “clarion call” for the American auto industry, which lags China by years in producing affordable EVs.
Laptops 100045-year veteran of the car industry Woychowski said he was left wondering whether American automakers could adapt after the deconstruction. “To be able to compete, some radical changes will have to be made to things,” he stated.
How BYD is able to produce the Seagull for such a low price is beyond the scope of any one miracle. Rather, Woychowski described the car as “an exercise in efficiency” as a whole, with a range of 252 miles (405 km) on a single charge.
Part of the problem is higher labor costs in the United States. Because of its experience producing batteries using lithium iron phosphate chemistry, mostly for consumer goods, BYD is able to keep costs low. They are less expensive than most modern lithium-ion batteries, but they have a smaller range.
According to Woychowski, Americans are still discovering how to create batteries at a lower cost. Ford is utilizing technology from China’s CATL to construct a facility for lithium iron phosphate batteries.
A large number vehicle parts, including electric motors, dashboards, bodywork, and even headlights, are manufactured by BYD. Another benefit is its enormous reach; 3 million cars were sold globally last year.
“They have a huge advantage because they have that all in-house and vertically integrated,” Woychowski stated.
BYD considers cost and efficiency in every design decision it makes for its cars. For example, the Seagull requires less weight, money, and labor to install because it only has one windscreen wiper, removing the need for a motor and an arm.
According to Woychowski, American automakers don’t frequently create cars in this manner and suffer additional technical costs. For example, hoses used in combustion engines must meet strict specifications for strength and capacity to transfer fluid under high pressure; many of these standards are not applicable to electric vehicles, he continued.
The Seagull can go farther between charges on a smaller battery because to the cumulative weight savings. The Seagull that Caresoft tested, for instance, weighs 2,734 pounds (1,240 kilogrammes), which is roughly 900 pounds less than the Chevrolet Bolt, a little larger GM electric car.
“You need to come in here and take this very seriously, and leave your preconceptions at the door,” Woychowski remarked. “Because things will need to be done differently,” I said.
The Seagull maintains a premium feel despite its simple appearance. The doors shut firmly. Typically seen in more costly cars, the stitching on the grey synthetic leather seats matches the color of the car. Electronic stability control, disc brakes in the back, and six airbags are features of the Seagull “Flying Edition” that Caresoft assessed.
A reporter’s quick test drive across a few connected parking lots revealed that it handles bends and bumps just as well as more expensive electric vehicles and runs quietly.
Although it doesn’t accelerate as quickly as other EVs, the Seagull is quick and would have little trouble navigating a busy motorway. According to Woychowski, it can only go as fast as 81 mph, or 130 km/h.
To comply with US safety regulations, which are stricter than Chinese ones, BYD would need to make modifications to its vehicles. Woychowski reported that although Caresoft hasn’t conducted crash testing, the Seagull’s price would increase by $2,000 as a result.
For almost $21,000, which is double the price it costs domestically, BYD offers the Seagull—rebranded as the Dolphin Mini in some foreign markets—in four Latin American nations.
In addition to covering transportation expenses, the higher price represents the potential for larger earnings in less competitive markets than China.
Larger variants like the Seal, which starts at 46,990 euros ($50,000) in France, are available from BYD throughout Europe.
According to the China Passenger Car Association, Thailand and Brazil were the Chinese manufacturer’s top two international markets in the first two months of this year.
BYD is “still in the process” of determining whether to sell cars in the United States, but it does manufacture electric buses in California.
Two business executives stated in talks with the media earlier this year that it is examining potential locations for a facility in Mexico, but that would be for the Mexican market.
Due in large part to taxes of 27.5% on the sale price of Chinese automobiles upon their arrival at ports; the corporation is not selling cars in the United States.
Donald Trump as President imposed the majority of the 25% tariff, and Joe Biden maintained it. Trump claims that as EVs become more popular, China will take over manufacturing jobs in the United States. Biden supports this claim.
The Biden administration has supported laws and initiatives to establish a domestic EV manufacturing sector, however it hasn’t ruled out the possibility of further tariffs to keep Chinese imports out.
The government is also looking at Chinese-made automobiles that have the ability to collect private data.
While some Congressmen have suggested even higher taxes, others are pleading with Biden to forbid the importation of Chinese automobiles. This includes automobiles produced in Mexico by Chinese businesses, which would now mostly enter the market tariff-free.
Former Ford CEO Jim Farley has seen Caresoft’s work on the Seagull and witnessed BYD’s explosive global expansion, particularly in Europe. He is relocating to a different company.
He told analysts earlier this year that a tiny “skunkworks” team is creating a new, small EV from the bottom up with the goal of keeping costs low and quality high.
According to Farley, two years ago, Chinese manufacturers accounted for nearly nil of the European EV market; today, they hold 10% of it. They’ll probably sell in the US as well as export to other countries.
Ford’s getting ready to refute it. Nothing should be taken for granted, Farley advised. “This Chief Executive Officer doesn’t.”
