Well-built China EV called Seagull poses big threat to US industry
LIVONIA, Michigan (AP) — A tiny, low-priced electric car called the Seagull has American automakers and politicians trembling.
The car, launched last year by Chinese automaker BYD, sells for around $12,000 in China, but drives well and is put together with craftsmanship that rivals US-made electric vehicles that cost three times as much. A shorter-range version costs under $10,000.
Tariffs on imported Chinese vehicles probably will keep the Seagull away from America’s shores for now, and it likely would sell for more than 12 grand if imported.
However, the rapid emergence of low-priced EVs from China could shake up the global auto industry in ways not seen since Japanese makers exploded on the scene during the oil crises of the 1970s. BYD, which stands for “Build Your Dreams,” could be a nightmare for the US auto industry.
“Any car company that’s not paying attention to them as a competitor is going to be lost when they hit their market,” said Sam Fiorani, a vice president at AutoForecast Solutions near Philadelphia. “BYD’s entry into the US market isn’t an if. It’s a when.”
US politicians and manufacturers already see Chinese EVs as a serious threat. The Biden administration on Tuesday is expected to announce 100 percent tariffs on electric vehicles imported from China, saying they pose a threat to US jobs and national security.
The Alliance for American Manufacturing says in a paper that government-subsidized Chinese EVs “could end up being an extinction-level event for the US auto sector.”
Earlier this year, Tesla CEO Elon Musk told industry analysts that Chinese EVs are so good that without trade barriers, “they will pretty much demolish most other car companies in the world.”
Outside of China, EVs are often pricey and aimed at a higher-income niche market. But Chinese brands that are not yet global household names are offering affordable options that will appeal to the masses — just as the US, European and many other governments are encouraging a shift away from gasoline-powered vehicles to fight climate change.
“The Western markets did not democratize EVs. They gentrified EVs,” said Bill Russo, the founder of the Automobility consultancy in Shanghai. “And when you gentrify, you limit the size of the market. China is all about democratizing EVs, and that’s what will ultimately lead Chinese companies to be successful as they go global.”
Inside a huge garage in an industrial area west of Detroit, a company called Caresoft Global tore apart a Seagull that its China office purchased and shipped to the US.
Company President Terry Woychowski, a former chief engineer on General Motors’ big pickup trucks, said the car is a “clarion call” for the US auto industry, which is years behind China in designing low-cost EVs.