The Chinese will deal another blow to local automakers. “We will represent them in Europe where they will end up with petrol and diesel,” says the Chery boss
6 hours ago | Peter Miller
/
Photo: Chery/Omoda
Van Damme could make another movie about it, Double Strike, because that’s exactly how the situation feels. Local automakers are paving the way for Chinese competitors by betting on electric cars that the Chinese can produce at lower costs. Then they want to make them pay a second time by continuing to sell the combustion ones simply because people want them.
It’s time to redraw the map of the automotive world. For decades, the relatively stable hegemony of the Europeans, followed by the Americans, who were then gradually joined by the Japanese and Koreans, has seen considerable destruction by China in recent years. It has clearly become the largest car market in the world, which of course has seen the boom of local car manufacturers. And at that time it was only a matter of time before domestic companies learned to produce cars in such a way that they could compete with Europeans, Americans or Japanese even abroad.
There would be no point in dwelling on this detail if the Chinese simply learned to do things better and at lower costs and began to trample on foreign competitors. So this also happened, but above all in this situation Europe has inexplicably led to something that does nothing but improve the position of Chinese companies. And we find it sad and completely useless.
Of course we are talking about a forced transition towards electric cars, which was born neither from market needs nor from the possibilities of technical development. Just no, he was ordered politically indirectly with a reference to some sort of greater good, and he started recording heavily for the Chinese. Due to the availability of the necessary raw materials and lower costs, they can produce electric cars at significantly lower costs. And it is – not historically, but currently – a relatively new product, so Europe’s decades-long lead in the development and production of internal combustion cars is suddenly lost.
We already know this and have talked about it many times, but according to the words of the cinema classic – in this case almost literally – the question has another aspect from the Marxist-Leninist point of view. EU pressure is causing not only traditional automakers to lean towards electric cars, but also their abandonment of internal combustion ones. And the paradox is that, while European automakers are racing to see which will end up with internal combustion engines first, the Chinese are planning no such thing.
In an interview with the German Focus, the head of the European branch of the Chinese giant Chery, Jochen Tüting, confirmed this without any pretense. Chery is no newcomer and its intentions to conquer the EU are not just hinted at, the company is entering here right now with the Omoda and Jaecoo brands. In 2024 one might assume that the Chinese will only present electric innovations like other brands, but the reality is different.
In a wide-ranging interview, Tüting described the automaker’s expansion plans in Europe, which according to him will not stop anything. Not even any customs duties, because in this case Chery is ready to go to the local assembly. The Chinese simply want to win the hearts of local customers and do not distinguish between them. Whatever is salable in the market, they will offer it. Unlike others, they really rely on internal combustion vehicles.
“We offer a complete range, from conventional combustion engines to hybrid models and fully electric vehicles. For both our brands we plan to offer a maximum of three models. And we are receiving positive feedback from our European dealer partners. They are thrilled to be able to serve all customers, from buyers of classic internal combustion engines to electric car enthusiasts,” says Tüting, essentially what the manager of any car manufacturer should quite naturally say. However, planning to offer a wide range of different technical solutions today is essentially an excess, not a standard.
However, the head of Chery Europe is serious and will not stop even if competitors or suppliers choose a different direction. “We develop and produce our own engines and transmissions. And we have a strategy for all of Europe. If you go further east, there are simply markets that are not as well-off compared to Germany in terms of charging infrastructure and proliferation of electric vehicles And incomes are not at a level where most people can even afford an electric car. Furthermore, several competing manufacturers are withdrawing from some segments by no longer offering gasoline engines. We want to fill this gap in the market.” says the German head of the European branch of the Chinese car manufacturer. And this simply confirms that the Chinese do not want to win by chance in the fight for customers of internal combustion cars, but want to gain points in market segments that others are abandoning.
The company is currently focusing on combustion engines for the distant future and continues to develop comprehensive innovations. According to Tüting, he is betting above all on the Miller cycle. “The industry is moving away from downsizing with high compression ratios which are problematic for tailpipe emissions. Instead, the trend is towards larger volumes, where the Miller cycle allows for less compression,” says the man who earned the push as Ford’s chief engineer for plans for the next few years. And he doesn’t like the fact that Long-term progressive brands like Mercedes are retreating from internal combustion cars – regarding the above, according to Chery’s manager, good times still await them, especially in the eastern and southern parts of Europe.
And as piquant as it is that this is a company from a communist country that ultimately caters more to customers than a company from a more or less capitalist institution, it’s not just about engines. Tüting also questions how much Western car manufacturers are pushing assistance systems, which are just as expensive and unwanted as electric cars. Some things today are mandatory, nothing can be done about it, but manufacturers do more than they should. He therefore criticizes the EU and them, because he is aware of what this ultimately means. And how detached he is from the ideas of the market again.
“This entails significant costs for car manufacturers, which are obviously reflected in the price for the end customer. In my opinion, both the legislation and the Euro NCAP testing standards in Europe have gone beyond customer needs. We also get this feedback from our sellers. There are many customers who have just one question regarding assistance systems: ‘Where can I deactivate them?’ Other things are much more important for customers”, concludes Jochen Tüting.
These are certainly remarkable statements that demonstrate just how well prepared the Chinese are for European expansion. They have a wide range of cars available at good prices and do not lose touch with the market. They have already practically dominated Russia, and although it will be much more difficult in the EU, who will stop them if European brands continue to sacrifice everything for a fundamentally unwanted type of car that they can only produce at very high costs?
Chery will enter Europe with, among other things, two models from the Omoda brand. The C5 SUV is currently the brand’s most successful model and is a direct competitor to the Škoda Karoq. It will also be available with petrol engines. Photo: Chery/Omoda
The same goes for the Omoda S5, rival of the Skoda Octavia. They are also aiming at European markets, and this time too there will be no shortage of internal combustion engines. Chery has wanted to offer them for a long time, especially in the East, so it is constantly developing new units. Photo: Chery/Omoda
Sources: Focus, Chery
Peter Miler
All articles on Autoforum.cz are comments expressing the opinion of the editor or author. Except for articles marked as advertising, the content is not sponsored or similarly influenced by any third party.
2024-01-02 14:32:00
#Chinese #deal #blow #local #automakers #represent #Europe #petrol #diesel #Chery #boss