Despite heavy U.S. tariffs on Chinese automakers, American automakers are already competing with Chinese manufacturers in markets in South America and Europe. BYD (BYDDY) executive vice president Stella Lee argues that only technology investment will determine the “ultimate winner” and that trade restrictions will not help U.S. automakers. But Tesla (TSLA) CEO Elon Musk insists trade restrictions are preventing the U.S. automaker from being “broken up.”
Robinson Mayer, founding executive editor of Heatmap, joins Yahoo Finance to discuss the EV market outlook and competition from the US market and Chinese automakers.
Maier explained that tariffs will continue to be an obstacle for regulators and auto suppliers. “What we're seeing is how the auto market, particularly the European auto market, is changing the way trade protection is implemented in one country. On the one hand, we are trying to protect local automakers by keeping this flood of very cheap cars from China out of the domestic market, and on the other hand, …You're going to keep your local automaker, whether it's Volkswagen (VOW.DE) or Peugeot (STLA) or any of the domestic automakers. ), Europe's Ford (F) and General Motors (GM) are competitive and at the cutting edge of automotive technology. I don't think any company or country has solved this problem yet, but I think this is an important policy question going forward, especially when it comes to the US and Europe. ”
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Editor's note: This article was written by Nicholas Jacobino
