I spend much of my time reading about automotive strategy, M&A, technology, and business. And I’ll often read sources that are off the beaten track.
This will be a weekly series of insightful articles I’ve read throughout the week. Articles that made me go, “Wow!” “Didn’t know that.” Or, “What are you smoking?”
China to Europe: Marry Me – Or Else
One of the world’s foremost experts on China’s automotive industry, Michael Dunne, likens the Chinese-European relationship to that of a potential marriage. Europe, with its nearly 450 million possible customers, is the bride at the altar, but is a bride having severe doubts about what that marriage would look like. China, on the other hand, armed with valuable gifts, is the annoyed groom, confused by Europe’s second thoughts. It’s a fun yet concerning read.
Polestar Has a Bold Plan—Get Better at Selling Cars
Another electric vehicle manufacturer moving away from a direct-to-consumer model toward a more dealer-focused approach is Polestar, which is adding dealerships and wants to improve its active selling through its retail partners. However, time might be running out for the Chinese automaker to become profitable as the majority owner and Geely Chairman and Founder Li Shufu seeks another $400 million loan to add to the $800 million 12-month term loan secured late last year.
Auto Industry Tariffs Loom, Risking Substantial Disruptions
Trade policy under President Trump’s administration is an evolving and uncertain story, leaving automakers, suppliers, and dealers trying to make business decisions with no clue of what the future looks like. The 25% tariff on Canada and Mexico and an additional 10% tariff on Chinese imports slated for February 4th were delayed for one month, providing a short reprieve as countries and firms scramble to prepare for multiple scenarios. S&P Global Mobility projects a 60% probability that the 25% tariff, if implemented, would see a quick resolution, after being in place for one or two weeks. But the tariffs could last much longer. What’s the impact?
Grand Theft Auto: Real Life
A fascinating read in Bloomberg detailing the world of stealing cars, an activity reinvigorated since the pandemic. Declining since their peak in 1991, the number of car thefts has jumped nearly 30% since 2020 and the pandemic, hitting more than one million in 2023.
