Tag Archives: China

Chinese cars lose value faster than competitors

When buying a car, buyers pay attention to quality and price, which have the greatest influence on the decision of which car to choose, and Chinese EVs have an advantage here. However, research has shown that they also lose value faster than other Asian brands.

Given the current economic situation, it makes sense that buyers prefer safer options when it comes to used cars. That’s why brands with proven reliability tend to be the first option, and Chinese cars do not have that status. They still play a smaller role in the used car market, but as their brands increase sales, the stock of used cars will also increase.

Platform for used cars (Oto) recently published a study showing that certain Chinese cars lose up to 33 percent of their value in just two years. This is a much higher rate of decline in value than South Korean brands, whose cars record a decrease in value of less than 20 percent, while Japanese cars have a decrease of up to 12 percent in the same period.

Also, it should be remembered that an affordable car does not necessarily have a higher depreciation rate, as evidenced by the cars of the Romanian brand Dacia. Their used cars still have a fairly high price, which is currently almost impossible for Chinese brands. It will take a long time for Chinese cars to earn the status of reliable, which is not so easy to achieve. Those who have been on the market for a long time know this, because European buyers are not naive, at least when it comes to car brands.

Source: VnExpress International

Honda is replacing 30% of production workers at its Chinese plant with robots

The development of artificial intelligence and the use of robots in the automotive industry is on the rise, and one of the manufacturers that has made a big step in replacing human labor with robots is Honda. The Japanese manufacturer announced that almost a third of the production workers at its plant in China will be laid off and their positions will be taken by robots.

In China, Honda produces the all-electric Ye P7, and the plant in China uses automated guided vehicles or AGVs to transport various components in its factory, including heavy batteries. The manufacturer is trying to reduce costs as much as possible, so the use of AI technology is of great importance to achieving this goal.

China is the largest market for electric cars, and their manufacturers are far ahead of all others, although most others. The Japanese manufacturer is one of them that is trying to keep up with the competition, and their model Ye P7, which is produced in China, is one of the company’s hopes.

The Ye P7 is powered by a rear-mounted electric motor with 272 hp and has rear-wheel drive. It is equipped with an 89.8 kWh battery that provides a range of 650 kilometers on a single charge. Customers can also choose a version with two electric motors with 476 hp and all-wheel drive, which thanks to the same battery has a range of 620 kilometers.

Source: Reuters

Flavio Volpe criticized the new US tariffs

A few days ago, the new US President Donald Trump signed an executive order imposing additional tariffs on Canada, Mexico and China. We didn’t wait long for a reaction, and the first to speak out was the head of the Canadian automotive industry, Flavio Volpe, who criticized Trump.

The BBC used this opportunity to recall Trump’s statements about US-Canadian relations and the automotive industry in particular. Not long ago, Trump said: “We don’t need their cars. I’d rather make cars in Detroit.”

Flavio Volpe said that about 2 million vehicles are produced in Canada annually, of which 1.6 million are exported to the United States. This includes General Motors, Ford, Dodge, and Chrysler.

Volpe believes that the plans set by the new US administration are very ambitious, and for their realization it is necessary to build 25 production plants to meet demand. This takes a long time (10 to 15 years), and Ford and General Motors would probably go bankrupt in the whole process.

“So I have a message for Trump. Grow up,” Volpe said.

Source: BBC