While the semiconductor shortage was long considered the excuse par excellence for why the automotive sector couldn’t produce enough vehicles during the pandemic, some manufacturers have begun pivoting to blaming supply chains that have been stymied by Chinese lockdowns. Toyota is probably the best-known example. But the matter is hardly limited to a singular automaker and market analysts have already been sounding the alarm bell that strict COVID-19 restrictions in Asia will effectively guarantee prolonged industrial hardship around the globe.

Back in April, Shenzhen was emerging from a month-long lockdown. However, the resulting downtime severely diminished the tech hub’s output which exacerbated global component shortages. While Chinese state-run media claimed regional factories maintained full-scale production during the period, the reality was quite a bit different. Meanwhile, Shanghai has remained under harsh restrictions since March and more look to be on the horizon. As an important industrial center and the world’s busiest port by far, the situation has created an intense backlog of container ships that are presumed to create some of the sustained problems that we’re about to explore.  Read More >

Back when everyone still bought into the hype surrounding self-driving cars, automakers were releasing concept vehicles framed as a “lounge on wheels.” The theory was that once autonomous vehicles hit the mainstream, companies would begin dropping futuristic models with swanky interiors because drivers would no longer be responsible for piloting the car for the duration of its journey. However, the public eventually learned that autonomous driving technologies had failed to progress as promised and would likely come with a host of restrictions plenty of drivers wouldn’t be interested in once the wrinkles had been ironed out.

But there are a whole host of markets to be tapped, the public has a relatively short-term memory, and there’s always a chance that some major headway was made during the last few years of development. So we’ve seen a resurgence of mobility talk from the industry, especially as it relates to all-electric vehicles. Case in point is the Audi Urbansphere — an autonomous concept vehicle designed for “Chinese megacities” but allegedly perfect for a metropolitan area near you.  Read More >

Volkswagen Group will be moving some of its European production out of the continent and into facilities located in China and the United States, citing the war in Ukraine as the largest contributing factor. Though if you’ve been following the company, it had already signaled a desire to raise its capacity in China ever since the region shifted into becoming its largest market.

In fact, Chief Executive Herbert Diess said during Tuesday’s press call that China will be taking precedence as the automaker reorganizes its manufacturing.

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Toyota Motor Corp is currently having to contend with idle factories in Asia, reducing the automaker’s estimated output by over 47,000 units this month. Shockingly, it’s not alleged to have anything to do with the semiconductor shortage that’s been wreaking havoc on Western markets.

With chip production having been localized primarily in China and Taiwan, Asian suppliers have had better access to them. But Eastern markets have still been subjected to other routine plant closures due to supply chain restrictions stemming from the pandemic. Existing protocols in China, combined with renewed restrictions in Japan, have created a situation impacting numerous automakers with Toyota announcing this week that it probably won’t reach its goal of manufacturing 9 million cars this year — though it made sure to include the ongoing semiconductor issue as relevant.  Read More >

Volvo Cars is plotting to buy out parent company Zhejiang Geely Holding and free itself of its Chinese joint venture. The Swedish (currently Swedish-Chinese) manufacturer has been hinting at the prospect of going public with an IPO, which most analysts believe would be bolstered by creating some distance from Geely.

While the Chinese Communist Party has ended mandates requiring electric vehicle firms from entering into joint ventures with established domestic businesses, the rule still exists for traditional automakers. However, the general assumption is that most will attempt to regain full ownership of their Chinese assets when the law is lifted next year. But critics are cautioning that the nation is under no obligation to maintain any commitment to foreign entities once they’ve split with their local partners.  Read More >

Volkswagen Group has been prattling on about electrification for years and ultimately decided that Audi would be the tip of its progressive spear. The brand has cachet as both a luxury and performance division, while simultaneously possessing VW’s magical ability to produce vehicles that don’t become an eyesore after you’ve had them in the garage for a decade.

While transitioning toward EVs runs the risk of spoiling that, Audi is clearly the VW property best positioned to come after would-be Tesla customers and is not hesitant to issue reminders that it’s serious about being a global leader when it comes to battery-driven vehicles. On Tuesday, the Ingolstadt-based company announced plans to exclusively launch electrically driven automobiles from 2026 onward — adding that it doesn’t even plan on selling internal-combustion vehicles by 2033.

But these rules won’t apply to the Chinese market, which will be flush with internal-combustion vehicles produced within its borders years after the rest of the world has apparently lost the option to purchase them.  Read More >

Foxconn, also known as Hon Hai Technology Group, announced that it signed a development and manufacturing agreement with Fisker. Foxconn is one of the world’s largest electronics manufacturers and the producer of Apple’s iPhone.

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The world’s climate has been centerstage the last two days. President Biden and other world leaders have vowed to reduce global warming by making drastic changes. Will they follow through?

At the 2015 Paris climate accord, then-President Obama set greenhouse gas reduction at half what Biden has proposed. Former President Trump, Obama’s successor, did little to forward this, but is it realistic for Biden, who served as Obama’s vice president,  to double down on Obama’s goal in a relatively short time frame?

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Today President Joe Biden committed to cutting U.S. fossil fuel emissions up to 52 percent by 2030. His statement came during a virtual climate change summit with 40 world leaders.

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Mercedes-Benz’s 2021 EQB is its third all-electric launch this year, along with the EQA 250 and EQS. The EQB will be produced for the local market in Beijing. The rest of the world will get their EQBs from Kecskemét, Hungary. The EQB will be the first pure EV made in Hungary.

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Unveiled at the Shanghai auto show, Volkswagen’s ID.6 is reportedly ready for the Chinese market as the manufacture strives to present itself as an EV firm. Originally known as the spacious ID Roomzz concept, the three-row crossover will be the VW’s largest product on the Asian market and come in two distinct flavors — each the offspring of separate joint ventures required by the Chinese government.

The ID.6 Crozz (shown in orange) will be produced at the FAW-Volkswagen facility in Foshan while SAIC Volkswagen will be responsible for manufacturing the ID.6 X (purple) at its plant in Anting, near Shanghai. Regardless of which model customers go with Volkswagen is promising a vehicle “tailored specifically to the needs and wishes of Chinese customers in terms of space, functionality, design and, in particular, user experience.” While we may eventually see a version of the ID.6 coming to North America, China is Volkswagen’s largest individual market and ranks higher in the manufacturer’s list of priorities.  Read More >

Xiaomi, a Chinese smartphone colossus, has announced they are building their own branded electric vehicles (EVs), just like Apple, Huawei, Sony, and Foxconn.

If you’re prepared to lose money, starting a car company is easy. Just ask Tesla. Xiaomi has plenty, enough to sink $10 billion into the venture over the next 10 years.

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One of Volkswagen’s joint ventures in China has reportedly offered to purchase regulatory credits from Tesla in order to adhere to the regional environmental ascendancy. While VW may be doing everything in its power to swap over to an electric-vehicle manufacturer, it’s apparently falling short of government dictums.

FAW-Volkswagen — which shipped a little over 2 million automobiles in Asia last year — happened to be one of the biggest polluters of 2020 according to China’s Ministry of Industry and Information Technology. As it turns out, selling internal combustion vehicles consumers actually want to purchase in large quantities has some kind of environmental cost. Fortunately, it’s one regulators think can be solved by buying green credits from rivals who do all of their polluting during the initial assembly process and launder any future emissions through the national energy grid.  Read More >

XPeng, a Chinese maker of EVs, sent a fleet of XPeng P7s on a 2,284-mile, weeklong autonomous driving jaunt across six provinces, the longest by any mass-produced vehicles in the country.

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Ford Motor Co. has decided against its plan to launch an electric vehicle joint venture with China’s Zotye Automobile. The American manufacturer confirmed the decision on Thursday, stating that the Chinese Communist Party (CCP) had made sweeping changes to its policies since the deal was initially agreed to in 2017.

Few specifics were given beyond that and Ford hasn’t indicated the move might suggest a retreat from the one-party socialist republic. Ford recently confirmed its plan to build Chinese versions of the all-electric Mustang Mach-E with Chongqing Changan Automobile Co. and maintains numerous joint ventures necessary to continue doing business inside Central Asia.

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