AD #3566 – Car Dealers Losing Market Share To EV Startups; Linamar To Open Gigacasting Factory; Baojun Yep Gets Cool Accessories

May 12th, 2023 at 12:00pm

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Listen to “AD #3566 – Car Dealers Losing Market Share To EV Startups; Linamar To Open Gigacasting Factory; Baojun Yep Gets Cool Accessories” on Spreaker.

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Runtime: 10:34

0:00 Car Dealers Losing Market Share
1:01 Musk Steps Away from Twitter, Tesla Investors Rejoice
1:45 Germany Scores Big Battery Plant
2:34 VinFast To Do a SPAC
3:15 Hyundai-Kia Face Insurance Lawsuit
4:53 Mercedes Axes CLS
5:24 Honda To Export MIC EVs to EU
6:19 Linamar To Open Gigacasting Factory
7:16 Shipping Shortage Due to China Car Exports
7:53 Baojun Yep Gets Cool Accessories

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26 Comments to “AD #3566 – Car Dealers Losing Market Share To EV Startups; Linamar To Open Gigacasting Factory; Baojun Yep Gets Cool Accessories”

  1. Ron Says:

    Who started exporting first from China? Oh, first mover advantage with all the cargo ships all ready under contract. Maybe Tesla is using most of them as ship to Europe.

  2. Albemarle Says:

    I will be interested to see how much Tesla changes under new management. Have a PR department? What about large random price changes? Who’s going to make outrageous promises that are always delayed?

  3. Kit Gerhart Says:

    With the discontinuation of the CLS, the car that started the “4 door coupe” thing has been replaced by lifted, bulbous, and much less attractive “4 door coupes.”

  4. Kit Gerhart Says:

    2 Is Tesla, as well as twitter, getting new management?

  5. GM Veteran Says:

    Its hard to see $10,000 more value in the Baojun EV ute over the Wuling model. With an EV market flush with many choices and plant overcapacity at an alarming level, this vehicle may well be a swing and a miss. (It may also get a price reduction announcement fairly soon)

  6. GM Veteran Says:

    1 – Ironically, I believe that would be GM. The Buick Envision is the first vehicle I can recall being exported from China. Others have followed, including several models from Nio. It wasn’t long after Tesla’s Shanghai plant opened that they started exporting small number of cars to Europe. Seems like that will likely stop with the opening of the Berlin plant, and its announced expansion.

  7. Albemarle Says:

    2 Oops, I mistook him leaving Twitter for Tesla. Shows how much attention I pay to Elon.

  8. Lambo2015 Says:

    Car dealers had better get used to losing money from sales. Thats an outdated sales model and selling direct is the future. If they cant see that they are in denial. Even the online car shopping for used cars is already popular. Better get on board and start making plans to change their business plans.

    AWWW Did the insurance companies lose on their bet to insure Hyundai’s? Maybe didnt do their due diligence when preparing a premium? Insurance is a gamble and they’re betting you wont need it while we all pay premiums in case we do need it. Well I would toss their lawsuit so fast they would have whiplash. Too bad your loss. If Hyundai followed federal guidelines then sorry insurance company you picked a bad horse this round.

  9. Kit Gerhart Says:

    6 I think some Volvos were the first Chinese cars imported to the U.S., but Envision and CT6 plug-in followed shortly.

  10. Kit Gerhart Says:

    7 I thought maybe that was the case.

  11. Dave Says:

    Could be wrong but thought the first model Y’s made in China going to port of Tacoma WA then on to Canada so technically will be on American soil first

  12. ChuckGrenci Says:

    I think that the rules that dealerships must follow should be re-evaluated and a new structure of sale should be implemented to include any sale, whether online, dealership or virtual. As a metaphor, looked what is happening to the traditional Cab companies; underregulated Uber and other drive services, whether rightly or wrongly, affected Cab services due to the fact they had to compete on different playing fields (for the same service).

  13. Ron Says:

    Thanks GM veteran, For export correction. Tesla is exporting in volume right now. 35,800 last month.

  14. Wim van Acker Says:

    @1, 6, 9, 11, 13 all of these elements add up to a significant number of Chinese-made vehicles for export

  15. wmb Says:

    #8.) I agree with you, yet, whether the insurance companies win this lawsuit or not, we will ALL pay for it with even HIGHER premiums! I guess there no way to go after the social media individuals who created the hack?! What about when and if they catch a car thief, they make the penalty and automatic 10 year felony sentence (no exceptions), to discourage stealing them in the first place?

    As many have said, it may be time for a different approach to the dealership/salesman approaches. Not by getting red of them, but, a rethink of their interaction with the customer. Instead of them working off commission, but make the like the other members of the hourly staff? I mean, look, many (most?) start there car search today online anyway. Perhaps a costumer can reach a vehicle on either the OEM’s or dealerships website, build their vehicle, or select a model the dealership has on their lot and from there a they schedule a test drive, all online. THEN, the salesperson reaches out to them, confirms the appointment, later meets them at the dealership for the test drive, afterwards reviews any pertinent/important information and answers questions they may have (rebates, incentives, etc.). A flat wages gets them out of the play-to-play mark-ups, yet, gives the potential buyer an actual person to talk to for this major purchase, while also demonstrating the benefits of having a local dealership to quickly handle issues that may come up with the vehicle purchase, making the customer feel more secure!

    And Sean, unicorns are the horses with horns and pegasus is the horse with wings! LOL

  16. Kit Gerhart Says:

    14 I suspect the US will be about the last to import Chinese brands, but at some point, it will happen.

  17. Lambo2015 Says:

    15 I agree that a dealership will remain be needed, as vehicles need a place to be delivered, serviced and repaired. I just expect the role of salesman to morph into more of a vehicle concierge. Be there to answer questions offer assistance at pick-up. But I fully expect the ordering and financing portion to move predominantly on-line. Then walk into your dealership when your order arrives and that sales staff will likely be reduced significantly and as you proposed more likely salary or hourly without commission.
    I would think the luxury brands may even go the extra mile with home delivery with other perks to stand out. Customers will likely be much happier too as the sales concierge wont have to get a manager to complete a sale, or all the stuff people gripe about with sales folks. Just be more like a dealer service. Who knows maybe they’ll get tips.

  18. Drew Says:

    I think the Volvo S90 was the 1st Chinese vehicle imported into the USA.

    With respect to the Hyundai/Kia v. Insurance industry lawsuit, the insurance industry might have a case if H/K incorrectly claimed the vehicles were equipped with immobilizers. If H-K never made the claim yet still met Federal law, then the case is baseless.

  19. Kit Gerhart Says:

    I read that S60 Inscription was the first Volvo imported to the US from China. Could be wrong, though. I guess Inscription is a “performance” version.

  20. Kit Gerhart Says:

    19 It looks like the S60 Inscription was more a stretch “luxury” version, than a performance version.

  21. James Head Says:

    It is WAY past time to abolish the dealership chicken laws like we have in Michigan. If the consumer perceives that there is value in buying from a dealer rather than direct, they will do so.

  22. Kit Gerhart Says:

    21 It seems that dealers serve a purpose, for now. A Tesla owner friend has not been happy with the service experience compared with other cars he’s had, like Honda, Mazda, Toyota, and Chevy.

  23. Lambo2015 Says:

    22 Seems dealerships should evolve into ASE certified service centers and are needed for that reason which will set them apart from Tesla. When people buy a vehicle, they will still want a place locally they can go to get service and repairs done. Just the sales side of dealerships need to change. Its the worse part for most people anyway.
    Where I live, like many towns we have a road where most all the dealerships are located. Which could be replaced with a mega service center and mega body shop. Consolidating those services among many manufacturers could offer a couple advantages. The cross training and buying power of a large shop may allow work to be done cheaper.

  24. Ukendoit Says:

    For those confused about what Musk is doing, I read the article, and as the caption and transcript here say, he is stepping down from Twitter to focus on Tesla (not leaving Tesla). From the article: “The boat anchor called Twitter is loosened from Musk’s ankle. Now he can get back to spending more time creating value at Tesla”.
    The question I still had after reading the article is: what about SpaceX? It didn’t say anything about his involvement with SpaceX in the article, but that hadn’t been quite the distraction lately for him like Twitter was.

  25. Kit Gerhart Says:

    23 The sales “service” dealers provide, is taking trades. They often, or usually give ridiculously low offers, but in most states, you pay sales tax on the difference, not on the price of the new car. That being the case, you need to get ~7% more for your car selling it yourself, as opposed to trading it.

  26. Kit Gerhart Says:

    24 I don’t know Elon’s current involvement with SpaceX, but they are putting a lot of space debris in orbit, in the form of thousands of Starlink satellites. There is a launch about every two weeks in Florida, and are also launches in California.

    Starship, the big SpaceX rocket has had a few launches, many with failures. While the smaller Falcon 9 has been very reliable, including recovery of boosters, Starship is very much a work in progress.