A tiny, low-priced electric vehicle called the Seagull has American automakers and politicians trembling.
Tariffs on Chinese EVs will keep the Seagull out of America for now, and it likely would sell for over US$12,000 if imported.
"Any car company that's not paying attention to them as a competitor is going to be lost when they hit their market," said AutoForecast Solutions vice president Sam Fiorani. "BYD's entry into the US market isn't an if. It's a when."
US politicians and carmakers already see Chinese EVs as a serious threat. The US just imposed 100 percent tariffs on them.That came after the Alliance for American Manufacturing said subsidized Chinese EVs "could end up being an extinction-level event for the US auto sector" and Tesla CEO Elon Musk weighed in that they are so good that without trade barriers, "they will pretty much demolish most other car companies in the world."
Chinese EVs offer affordable options for the masses - just as many nations are pushing drivers away from gasoline cars.In Detroit, Caresoft Global tore apart and reassembled a bright green Seagull.
Its president, Terry Woychowski, a former chief engineer on General Motors' pickup trucks, said the car is a "clarion call" for a US industry that is years behind China in designing low-cost EVs.After the teardown, he was left wondering if US automakers can adjust. "Things will have to change in some radical ways in order to be able to compete," he said.
The car, which can go 405 kilometers per charge, is "an exercise in efficiency."US labor costs are a part of the equation, while BYD can keep costs down due to its battery-making expertise and manufactyuring of many parts, including motors, dashboards and bodies, using its huge scale - three million vehicles sold worldwide last year - for cost savings.
It designs vehicles with cost and efficiency in mind, Woychowski said, citing the Seagull having only one windshield wiper, eliminating one motor and one arm, saving on weight, cost and labor to install.The efficiency means weight savings that add up, allowing the Seagull to travel farther per charge on a smaller battery.
So Detroit needs to quickly relearn a lot of design and engineering to keep up while shedding practices from a century of building vehicles, Woychowski said.The Seagull still has a quality feel. Doors close solidly. The synthetic leather seats have stitching that matches the body color, a feature found in more expensive cars.
The Seagull tested by Caresoft has six air bags and electronic stability control.A brief drive showed that it runs quietly and handles curves and bumps as well as more costly EVs
While acceleration isn't head-snapping like other EVs, it is peppy and would have no problems entering a freeway.BYD would have to modify cars to meet US safety standards. Crash tests would add US$2,000 to the cost.
BYD sells the Seagull, aka the Dolphin Mini, in four Latin American countries for US$21,000, the price including transportation and reflecting higher profits possible in less cutthroat markets.BYD said last year it is "still" deciding whether to sell in the US and weighing factory sites in Mexico for the local market.
It isn't selling in the US largely due to 27.5 percent tariffs on Chinese vehicles.Some in Congress are urging President Joe Biden to ban imports of Chinese vehicles altogether, including those made in Mexico by Chinese firms that now would come in largely without tariffs.
Chinese makers, Ford CEO Jim Farley said, sold almost no EVs in Europe two years ago, but now have 10 percent of the market. It's likely they'll export around the globe and possibly sell in the US.Ford is preparing to counter that. "Don't take anything for granted," Farley said. "This CEO doesn't."
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