Is 2022 the year Chinese cars arrive in America?

There are Chinese-made cars in America right now, but no one is advertising that fact. With all the finger pointing and the click of savers between the United States and China, the two companies are bringing Chinese-made cars to the United States – Shhh! Let’s just call them Team G and Team V. – keep them really low. And who could blame them? Many Americans are not well disposed towards the Middle Empire, believing that it is engaged in all manner of nefarious activities designed to steal trade secrets from American companies.

The extent of animosity towards Chinese companies became very clear recently when BYD was excluded from benefiting from the money allocated by Congress to promote the purchase of electric buses, despite the fact that BYD is the largest manufacturer. bus company in America and exclusively uses unionized workers to assemble its products. Can you imagine the outcry if a Chinese automaker sold new cars eligible for the Federal Electric Vehicle Tax Credit to the United States? This is exactly what could happen in 2022 if Nio and Geely are successful.

NIO is hiring in America

According to CnEVPost, Last Thursday, NIO posted three job postings on LinkedIn for positions in San Jose, Calif., all related to the company’s infrastructure plans there. The three positions are responsible for architecture and design, responsible for energy strategy and responsible for user infrastructure, construction and preparation. Here is more information on each of these positions, each of which requires at least 10 years of experience.

  • Head of architecture and design: Drive and develop the design and architecture of NIO’s core user infrastructure in the Americas, including localization and design standardization for each category of infrastructure. From site selection to final completion, influence and oversee the infrastructure construction process and plans to ensure that final construction fully represents the design details agreed upon with NIO senior management.
  • Responsible for energy strategy: Develop and articulate a clear vision for the regulations and incentives governing U.S. EV charging infrastructure participants and align NIO stakeholders with this vision. Develop the pricing strategy for NIO’s power offerings, detailing how NIO’s capabilities can optimize all system components, including the purchase, acquisition, storage and delivery of power.
  • Responsible for the construction and preparation of user infrastructures: Develop a detailed infrastructure readiness plan for each category of infrastructure, aligned with company goals and budgets. Obtain management approval for the plan and direct the execution of the plan. From site selection to final completion, master the infrastructure construction process and plans to ensure that the final construction fully represents the design vision and expectations.

At the NIO Day 2021 event on December 18, William Li, Founder and CEO of NIO, announced that the company plans to start selling cars in Germany, the Netherlands, Sweden and Denmark in 2022. She has already started selling its cars and installing its proprietary battery swap stations in Norway this year. NIO’s goal is to serve users in more than 25 countries and regions around the world by 2025, including the United States, Western Europe, Australia and New Zealand.

Li added, “We can not let users not have good service for a long time, and we will ensure that we have the ability to provide users with practical experience like a gasoline car. It’s a very basic starting point for us. If we think we can’t do it, we’d rather not enter that market, or if we can’t do it in the short term, we’d rather wait. We did it in a country as big as China, so there’s no reason we can’t do it in Europe or the United States. We are certainly a Chinese company, but we are also a company founded and supported by global resources and our colleagues come from over 40 countries, ”he said.

Geely / Nissan Link has implications for the US market

Renault and Geely will soon announce a joint venture agreement. Sources tell Reuters the two companies will offer a new range of green cars that use Geely’s compact modular architecture – a mid-size vehicle platform shared by Geely and Volvo – and share Geely’s supply chains and manufacturing facilities by China. Renault will focus on the design, sales and marketing of its new brand’s vehicles in China, the sources said.

For Geely, the deal could mean a production facility in South Korea and access to Renault’s assembly plant in the country, where Renault has been manufacturing and selling cars for more than two decades via a brand. local with a division of the Samsung group. Sources say Geely hopes to produce its Lynk & Co 01 – currently available as a car with a conventional gasoline engine, hybrid or plug-in hybrid – in South Korea. Only one source the conventional car and the hybrid will be built in this country.

A back door to the American market

Now here is some interesting information. The sources tell Reuters that cars made in South Korea are allowed entry into the United States under an existing duty-free free trade agreement. According to CNBC, this safe haven provision allows cars made by Hyundai, Kia and GM in South Korea to be imported into the United States without paying import duty. Currently, cars imported from China are subject to a tariff of 27.5%. The result is that Lynk & Co vehicles made in South Korea would also be allowed to enter the United States duty-free – at least in theory. Given the current wickedness of the U.S.-China trade relationship, some U.S. automakers may be rushing to Washington to try and find a way to prevent this from happening.

And what about Nissan?

The Renault Nissan Alliance, which has been on the verge of collapse since Carlos Ghosn escaped Japanese authorities, could suffer another setback as a result of this new joint venture with Geely. Renault and Nissan both had manufacturing agreements with Dongfeng, that is, platforms and other vehicle components to reduce manufacturing costs and the like. Renault severed its relationship with Dongfeng and left the Chinese market last year. This new agreement with Geely could make it possible to re-enter the Chinese market without Nissan. Reuters said slyly, “It was not immediately clear how Renault’s partnership with Geely would impact the Renault-Nissan alliance.” You can repeat it twice!

Takeaway meals

The wicked China-U.S. Trade relationship may delay the entry of Chinese-made cars into the United States, but it won’t stop them. The Hyundai Excel and the Yugo were crap cars, but they were cheap and Americans couldn’t get enough of them. Chinese companies will be content to play in the low-cost segment of the market – for a while. But in 10 years, despite the political wrangling, Chinese cars will be as common as Toyota’s and Hyundai’s. You can take that to the bank.

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