Greetings from London! Once in a while, a number pops out of an autos story that really grabs your attention. Take this story on opening orders for Xiaomi's new YU7 electric SUV, for instance. In the first 18 hours after the EV went on sale in China, Xiaomi said it had received 240,000 firm orders for the YU7. Just for context, year to date through to the end of May Tesla sold a total of 201,926 cars in China. That's five months of sales versus less than a day of orders. The YU7 has been billed as a major challenger for Tesla's Model Y. It is cheaper than the Model Y and analysts have warned that could spell trouble for Tesla. Tesla may be left hoping that not all of those 240,000 YU7 orders are legit. Which brings us to today's Auto File… |
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China's Chery comes to South Africa - REUTERS/Siphiwe Sibeko. |
Chinese carmakers flock to Africa |
Facing tariffs in Europe and all but locked out of the U.S. market, Chinese automakers are rushing to sell EVs and hybrids in Africa as part of a global quest for new markets. As Reuters colleague Nqobile Dludla reports, while Africa is home to more than a billion people, low incomes and high import duties have long hampered manufacturers' efforts to sell more cars there. You can read more about it here. Unreliable power availability and a lack of charging infrastructure have held back EV uptake in Africa, but Chinese automakers including BYD, Chery and Great Wall Motor hope low prices will succeed where others have failed. South Africa is their launch pad for a continent-wide strategy, which auto executives say will lean more on plug-in hybrids to appeal to consumers wary of fully EVs. Nearly half of the 14 Chinese automotive brands currently active in South Africa launched only last year. More, including DongFeng, Leapmotor, Dayun and Changan, are due to enter the market soon. Some of them, like Chery - South Africa's No. 2 Chinese automaker – are considering partnerships or building factories to produce cars for the South African market and for export to the rest of the continent and possibly Europe. |
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Nissan's Espinosa, looking for cash. REUTERS/Kim Kyung-Hoon |
Nissan asks suppliers for a loan |
In a bid to help fund itself out of a crisis, Nissan has asked some suppliers to allow it to delay payments to free up short-term funds, according to several emails and a company document reviewed by Reuters. As Reuters colleague Daniel Leussink reports, Nissan has asked some suppliers in Britain and the European Union to accept delays in payment. You can read more about it here. The move, effectively asking suppliers for a loan, would allow Nissan to have more cash on hand at the close of the April-June first quarter and follows similar requests before the end of the last financial year in March. Battered by slumping sales and weighed down by an ageing vehicle lineup, Nissan reported a $4.5 billion net annual loss and has declined to give a forecast this year. |
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More rare earths wanted, fast. - REUTERS/David Gray. |
The threat of mass shutdowns across the auto industry has begun to fade as shipments of Chinese rare earth magnets have begun to flow, but automakers and suppliers say production plans still face uncertainties and a continued risk of shortages. As Reuters colleagues Christina Amann and Laurie Chen report, European suppliers have received enough Chinese export licences to avoid the widespread disruptions predicted earlier this month, but hundreds of permits remain pending. You can read more about it here. According to European supplier association CLEPA, the rate of issuance is "accelerating" and has risen to 60% from 25%, but cases where the end users are based in the United States, or where products move through third countries like India, are taking longer or not being prioritised. Two weeks ago, the car industry was in a "full panic" over a lack of rare earth magnets, which are vital for a broad range of components. Automakers simply cannot make cars without them. But licence approvals by China have sped up and there is now less threat of a sudden stop, according to an executive at a leading U.S. automotive supplier and a source with knowledge of the supply chain at a major European carmaker. |
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After a few quiet weeks without a fight with the world's most powerful man, Elon Musk has been back at it. Over the weekend, Musk attacked the latest version U.S. President Donald Trump's tax and spending bill, calling it "utterly insane and destructive," before taking it a step further Monday by threatening to support primary challengers to any Republicans that vote for it. Tesla's CEO had managed to go a month since his last feud with Trump, one that led to an apology, sort of, from Musk. That fight was also over Trump's tax and spending bill. Last time round, Trump brought the feuding to an end when he threatened to cut Musk's government subsidies and contracts. Trump has returned to the same tactic, suggesting that the government efficiency department Musk formerly led should take a look at the subsidies that Tesla receives. Any bets on how this round of feuding ends? |
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China's No. 1 automaker BYD has slowed its production and expansion pace in recent months by reducing shifts at some factories in China and delaying plans to add new production lines, sources told Reuters. A major trade group representing General Motors, Toyota, and other automakers sharply criticized the U.S. National Highway Traffic Safety Administration, saying the auto safety regulator is impeding progress and struggling to modernize. EV maker VinFast has begun production at its second factory in Vietnam to ramp up output of affordable mini urban models as its global expansion plans has faced delays. Stellantis has begun a review of its long-term strategic plan, new CEO Antonio Filosa told staff after taking over the top job at the world's No. 4 automaker last week. General Motors persuaded a federal appeals court to decertify a class action seeking to hold the automaker liable for knowingly selling about 800,000 cars, trucks and SUVs with faulty transmissions. Tesla failed to persuade a federal judge to end a lawsuit over the death of a woman struck after an Autopilot-equipped Model S ran off the road in Key Largo, Florida, paving the way for a possible trial. Think your friend or colleague should know about us? Forward this newsletter to them. They can also subscribe here. |
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