LIVONIA, Mich. — A small, low-cost electric vehicle called the Seagull is shaking up U.S. automakers and politicians.
Launched by Chinese automaker BYD last year, the car sells for about $12,000 in China, but it drives well and is built with craftsmanship comparable to American electric cars three times the price. . The short-range version costs less than $10,000.
Tariffs on Chinese imported cars will probably keep the Seagull out of the U.S. for a while, and if it does, it’s likely to sell for more than 12 grand.
However, the rapid rise of low-cost EVs from China could shake up the global auto industry in a way not seen since the explosive rise of Japanese manufacturers during the 1970s oil crisis. BYD, which stands for “Build Your Dreams,” could be a nightmare for the U.S. auto industry.
“Any car company that doesn’t look at it as a competitor is going to be lost once it hits the market,” said Sam Fiorani, vice president of AutoForecast Solutions near Philadelphia. . “BYD’s entry into the U.S. market is not an if. It’s a when.”
American politicians and manufacturers already see Chinese EVs as a serious threat. The Biden administration is expected to announce on Tuesday a 100% tariff on electric vehicles imported from China, saying they pose a threat to U.S. jobs and national security.
The American Manufacturing Alliance said in a paper that government-subsidized EVs in China “could ultimately become an extinction-level event for the U.S. auto sector.”
Earlier this year, Tesla CEO Elon Musk told industry analysts that China’s EVs are so good that without trade barriers “they would crush most car companies in the world.” he said.
Outside of China, EVs are often expensive and target a niche market of high-income people. But just as governments in the U.S., Europe, and many other countries are encouraging a shift away from gasoline-powered cars to fight climate change, Chinese brands that aren’t yet world-famous are also looking to create affordable vehicles that appeal to the masses. We offer a variety of price options.
“Western markets didn’t democratize EVs. They gentrified them,” said Bill Russo, founder of Shanghai consultancy AutoMobility. “And when you gentrify, you limit the size of the market. China is committed to democratizing EVs, which will ultimately lead to the success of Chinese companies as they expand globally.” right.”
Inside a huge garage in an industrial area west of Detroit, a company called Caresoft Global tore apart seagulls that its Chinese subsidiary had bought and shipped to the United States.
Company President Terry Wojchowski, a former chief engineer for General Motors’ heavy-duty pickup trucks, said the vehicle is a “clear sign” for the U.S. auto industry, which has been years behind China’s in designing low-cost EVs. “It’s a call,” he said.
Wochowski, who has been in the auto industry for 45 years, said after the breakup he wondered whether American automakers would be able to adapt. “In order to be able to compete, things will have to fundamentally change,” he said.
There’s no miracle that explains how BYD is able to manufacture the Seagull at such a low price. Rather, the entire car, which can travel 252 miles (405 kilometers) on a single charge, is “an exercise in efficiency,” Wachowski said.
Rising U.S. labor costs are also part of the equation. BYD has expertise in manufacturing batteries using lithium iron phosphate chemistry, primarily for consumer products, which helps keep costs down. They cost less, but have a shorter range than most current lithium-ion batteries.
Wojchowski said Americans are still learning how to make cheaper batteries. Ford is building a lithium iron phosphate battery factory using technology from China’s CATL.
BYD manufactures many parts in-house, including the electric motor, dashboard, body, and headlights. It also benefits from its huge scale, with 3 million vehicles sold worldwide last year.
“Having everything vertically integrated in-house provides incredible benefits,” Wochowski said.
BYD designs every aspect of its vehicles with cost and efficiency in mind. For example, the Seagull has just one wiper, eliminating the need for one motor and one arm, saving weight, cost, and installation effort.
U.S. automakers don’t often design vehicles this way, Wachowski said, adding excessive engineering costs. For example, hoses must meet long-standing requirements in internal combustion engines, such as strength and the ability to carry fluids under high pressure, many of which aren’t needed in electric vehicles, he added.
The reduced weight allows Seagull to travel farther on a single charge with a smaller battery. For example, the Seagull tested by Caresoft weighed 2,734 pounds (1,240 kilograms), about 900 pounds lighter than GM’s slightly larger electric vehicle, the Chevrolet Bolt.
So Detroit will urgently need to relearn a lot of design and engineering to catch up while shedding a century of car manufacturing habits. The key will be deciding which steps to keep for safety and quality reasons and which steps to discard because they aren’t necessary, he said.
“We need to take this very seriously and put our paradigms aside because we need to do things differently,” Wochowski said. he said.
Seagull has a minimalist design, yet exudes a luxurious feel. The door will close securely. The gray synthetic leather seats have stitching that matches the bright green body color, a feature typically found on more expensive cars. The “Flying Edition” of the Seagull tested by Caresoft is equipped with six airbags, rear disc brakes, and electronic stability control.
A reporter took a short drive through several connected parking lots and found it to be quiet and able to handle curves, bumps, and even expensive electric cars.
Although acceleration isn’t as amazing as with other EVs, the Seagull is peppy and has no trouble pulling onto a busy highway. The top speed is limited to 81 miles per hour (130 kilometers per hour), Wojchowski said.
BYD must modify its vehicles to meet U.S. safety standards, which are stricter than China’s. Woychowski said Caresoft hasn’t done any crash testing, but estimates that would add thousands of dollars to the cost.
BYD sells the Seagull, rebranded as Dolphin Mini in some overseas markets, in four Latin American countries for about $21,000, twice the domestic price. This price increase includes transportation costs, but also reflects the higher profits possible in a tougher market than China.
In Europe, BYD offers larger models such as the Seal in France starting at 46,990 euros ($50,000). According to the China Passenger Car Association, the top two overseas markets for Chinese manufacturers in the first two months of this year were Thailand and Brazil.
BYD makes electric buses in California and told The Associated Press last year that it was “still deciding” whether to sell the cars in the United States. We are considering a location to build a factory in Mexico, but it will be for the Mexican market. Two company executives spoke in media interviews earlier this year.
The company’s CEO said at a press conference in May that the company has no plans to sell EVs in the United States.
BYD’s EVs are not currently sold in the United States, primarily because of the 27.5% tariff imposed on the selling price of Chinese cars when they arrive at ports. Donald Trump imposed the bulk of the tariffs, at 25%, during his presidency, but they remained in place under President Joe Biden. President Trump has claimed that the rise of EVs, backed by Biden, will eliminate jobs in American factories and send those jobs to China.
The Biden administration supports legislation and policies to build a U.S. EV manufacturing base. The administration is also investigating Chinese-made vehicles that can collect sensitive information.
Some lawmakers are calling on Biden to ban imports of Chinese cars, while others are proposing even higher tariffs. This includes vehicles made in Mexico by Chinese companies, which are now imported almost tariff-free.
Ford CEO Jim Farley has seen CareSoft’s work with Seagull and watched BYD’s rapid growth around the world, especially in Europe, where it once ran Ford’s operations. Ta. He is working to change the company. He told analysts earlier this year that a small “skunk works” team is designing new small EVs from scratch to keep costs down and quality high.
Farley said Chinese manufacturers sold few EVs in Europe two years ago, but now they account for 10% of the EV market.It will probably be exported all over the world and may also be sold in the US
Ford is preparing to counter this. “Don’t take anything for granted,” Farley says. “This CEO isn’t like that.”
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Associated Press writers Paul Wiseman and Didi Tan in Washington contributed to this report. Mr. Moritsugu reported from Beijing.
