Business
Small, Well-Built Chinese EV Called The Seagull Poses A Big Threat To The US Auto Industry
Livonia, Michigan —The Seagull, a small, low-cost electric automobile, has American automakers and politicians concerned.
The vehicle, which Chinese automaker BYD unveiled last year, costs about $12,000 in China, but it drives smoothly and has a level of craftsmanship that is comparable to three times more expensive electric vehicles made in the United States. A shorter-range version costs less than $10,000.
Tariffs on imported Chinese vehicles are expected to keep the Seagull away from American shores for the time being, and if imported, it will most certainly cost more than $12,000.
PixBay – VOR News Image
Small, Well-Built Chinese EV Called The Seagull Poses A Big Threat To The US Auto Industry
However, the quick introduction of low-cost EVs from China has the potential to shake up the global auto industry in ways not seen since Japanese manufacturers erupted onto the scene during the 1970s oil crisis. BYD, which stands for “Build Your Dreams,” could be disastrous for the US auto industry.
“Any car company that isn’t paying attention to them as a competitor will be lost when they enter their market,” said Sam Fiorani, vice president of AutoForecast Solutions near Philadelphia. “BYD’s entry into the US market is not a question. “It’s a when.”
Politicians and businesses in the United States already perceive Chinese EVs as a potential threat. On Tuesday, the Biden administration will likely impose 100% tariffs on imported electric vehicles from China, citing a threat to American jobs and security.
According to a study by the Alliance for American Manufacturing, government subsidies for Chinese electric vehicles “could end up being an extinction-level event for the U.S. auto sector.”
Earlier this year, Tesla CEO Elon Musk warned industry analysts that Chinese EVs are so good that, without trade obstacles, “they will pretty much demolish most other car companies in the world.”
Outside China, EVs are often expensive, catering to a higher-income niche market. However, Chinese businesses that still need to be worldwide household names are providing affordable solutions that appeal to the masses, just as the United States, Europe, and many other nations are pushing a shift away from gasoline-powered vehicles to combat climate change.
“The Western markets have not democratized EVs. “They gentrified EVs,” said Bill Russo, founder of Shanghai-based consultancy Automobility Ltd. “And gentrification limits the market size. China is all about democratizing electric vehicles, ultimately leading Chinese companies to success as they expand globally.”Inside a massive garage in an industrial location west of Detroit, Caresoft Global disassembled and reassembled a bright green Seagull purchased in China and delivered to the United States.
Company President Terry Woychowski, a former chief engineer on General Motors’ large pickup trucks, described the car as a “clarion call” for the United States auto industry, years behind China in developing low-cost EVs.
Following the breakdown, Woychowski, who has been in the car industry for 45 years, expressed concern about whether American automakers can adapt. “Things will have to change in some radical ways in order to be able to compete,” he stated.
There is no single miracle that explains how BYD can produce the Seagull so cheaply. Instead, Woychowski described the complete vehicle, which can travel 252 miles (405 kilometers) on each charge, as “an exercise in efficiency.”
Higher labor costs in the United States are one factor to consider. BYD can keep costs down due to its competence in manufacturing lithium iron phosphate batteries, which are primarily used in consumer products. They are less expensive but have a shorter range than most modern lithium-ion batteries.
Woychowski explained that Americans are still discovering how to build cheaper batteries. Ford is constructing a lithium iron phosphate battery facility using technology from China’s CATL.
BYD manufactures several parts, such as electric motors, dashboards, bodywork, and headlights. It also has the advantage of massive size, with 3 million vehicles sold worldwide last year.
“By having that all in-house and vertically integrated, there’s an incredible advantage that they have,” Woychowski stated.
BYD designs all of its cars with cost and efficiency in mind. For example, the Seagull has only one windshield wiper, eliminating one motor and one arm, saving weight, money, and labor during installation.
According to Woychowski, automakers in the United States rarely design automobiles in this manner, resulting in higher engineering expenses. Hoses, for example, must meet long-standing combustion engine standards for strength and the capacity to convey fluid under high pressure, many of which are unnecessary in electric vehicles.
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Small, Well-Built Chinese EV Called The Seagull Poses A Big Threat To The US Auto Industry
The weight reductions accumulate, allowing the Seagull to travel further per charge with a smaller battery. For example, the Seagull that Caresoft tested weighs 2,734 pounds (1,240 kilograms), around 900 pounds less than a Chevrolet Bolt, GM’s slightly larger electric vehicle.
To stay up, Detroit must swiftly re-learn a lot of design and engineering while discarding traditions developed over a century of vehicle production. He said the problem will be deciding which procedures to preserve for safety and quality and which to eliminate because they are unnecessary.
“You’re going to have to come and be extremely serious about this, and you better park your paradigms at the door,” Woychowski stated. “Because you’re going to have to do things differently.”
Despite its simple form, the Seagull exudes quality. The doors close solidly. The gray synthetic leather seats include stitching that matches the body color, a characteristic often found in more costly vehicles. The Seagull “Flying Edition” reviewed by Caresoft includes six airbags, rear disc brakes, and electronic stability control.
A reporter’s brief drive around connected parking lots revealed that it runs quietly and can manage bends and bumps like more expensive electric vehicles.
While the acceleration isn’t as impressive as other EVs, the Seagull is quick and would easily enter a freeway in heavy traffic. Woychowski claims the top speed is limited to 81 mph (130 km/h).
BYD would have to adapt its vehicles to meet US safety regulations, which are more strict than those in China. Woychowski says Caresoft still needs to do crash tests, but he estimates that doing so would cost $2,000 more for the Seagull.
BYD sells the Seagull, renamed the Dolphin Mini in some overseas markets, for almost $21,000 in four Latin American nations, more than twice the price here. The greater price includes transportation costs but also reflects the potential for bigger profits in less competitive markets than China.
In Europe, BYD sells larger models like the Seal, which starts at 46,990 euros ($50,000) in France. According to the China Passenger Car Association, the Chinese manufacturer’s top two overseas markets in the first two months of this year were Thailand and Brazil.
BYD manufactures electric buses in California and told the Associated Press last year that it is “still in the process” of determining whether to sell automobiles in the United States. Two firm executives stated in media interviews earlier this year that it is considering sites for production in Mexico, but only for the Mexican market.
Pixabay – VOR News Image
Small, Well-Built Chinese EV Called The Seagull Poses A Big Threat To The US Auto Industry
The company does not sell cars in the United States, owing mostly to 27.5% tariffs on Chinese vehicle sales when they arrive at ports. When Donald Trump was president, he imposed the majority of the tariff, 25%, which remained in place under Joe Biden. Trump claims that Biden’s push for electric vehicles will kill American manufacturing jobs, transferring the work to China.
The Biden administration has supported legislation and policies to establish a US EV manufacturing base, and it has not ruled out additional tariffs to keep the Chinese out. The administration is also looking into cars built in China that could collect sensitive information.
Some members of Congress are asking Biden to prohibit imports of Chinese vehicles, while others have proposed even higher duties. This includes vehicles manufactured in Mexico by Chinese businesses, which would now be imported essentially tariff-free.
Ford CEO Jim Farley has seen Caresoft’s work on the Seagull and seen BYD’s quick growth worldwide, particularly in Europe, where he previously ran Ford’s business. He’s planning to change his company. He told analysts earlier this year that a small “skunkworks” team is developing a new, small EV from the bottom up to keep prices low and quality high.
According to Farley, Chinese manufacturers sold essentially no EVs in Europe two years ago but now account for 10% of the electric vehicle industry. They may export around the world and possibly sell in the United States.
SOURCE – (AP)
(VOR News) – BYD, the Chinese manufacturer, has released a statement addressing concerns concerning adverse conditions at a construction site in Brazil where the business is building a facility.
The assertion claims that the accusations aim to “discredit” China and its enterprises. At the week’s outset, a task force led by Brazilian prosecutors declared the rescue of 163 Chinese people subjected to conditions akin to slavery at the location.
The Labor Prosecutor’s Office recorded a video of the workers’ dormitories, which displayed beds lacking mattresses and rudimentary kitchen facilities.
BYD spokeswoman Li Yunfei strongly opposed the issue on Weibo.
The statement additionally condemned the media’s portrayal of the incident. “The statement indicated that foreign entities are intentionally maligning Chinese brands, disparaging China, and seeking to jeopardize the relationship between China and Brazil.”
BYD, an acronym for “Build Your Dreams,” is a prominent maker of electric automobiles globally. On Monday evening, the corporation declared its intention to “immediately terminate the contract” with the Jinjiang Group, the contractor responsible for the factory’s construction, and stated that it was “evaluating other suitable measures…”
BYD announced that the employees at Jinjiang will be accommodated in nearby hotels temporarily and that they will not suffer negative consequences from the decision to halt operations at their workplace.
The corporation announced that it had been altering the working conditions at the construction site in recent weeks and had notified its contractors that “adjustments” were necessary.
Li’s tweet on Weibo included what it said to be a “declaration” from the Chinese workers at the site. The tweet included a video depicting individuals seated together in a room. The men’s thumbprints were crimson.
The video depicted a worker articulating a statement asserting that allegations of impoverished and “slave-like” conditions violated their human rights and that these difficulties stemmed from misunderstandings.
BYD should continue our employment here.”
Upon completing his work, the employees applauded. Prosecutors asserted that the sanitation conditions at BYD’s site were notably inadequate. There was one toilet for every 31 workers, necessitating their rise at four in the morning to line up and be prepared for work by five thirty.
Brazilian law defines conditions akin to slavery as defined by the worker’s subjugation to coerced labor or excessive working hours, acceptance of deplorable working conditions, and limitations on the worker’s freedom of movement.
Brazilian officials reported that Jinjiang Construction Brazil confiscated the workers’ passports and retained sixty percent of their wages, in addition to the substandard living conditions imposed on the workers.
The labor office’s statement indicates that employees who resign must reimburse the corporation for their travel expenses to China and return ticket costs.
The employees’ statement indicates that the passports were taken to enable the corporation to file work permits and other procedures that the employees could not accomplish independently due to language barriers.
Jinjiang Construction Brazil has reported that it is undergoing “frequent and intensive inspections by the BYD local labor department in Brazil.”
The labor department’s disclosed information was characterized as false, particularly the claims that the Jinjiang laborers were ‘enslaved’ and ‘rescued,’ which are entirely contradictory to the facts. This arose from cultural disparities, BYD translation difficulties, and comprehension difficulties regarding the content.
A declaration was issued asserting that the staff were enthusiastic about engaging with the media on the topic.
In numerous regions of the developing globe, the living conditions of migrant construction workers might be exceedingly inadequate. Moreover, such labor occasionally entails contracts that compel workers to reimburse BYD substantial sums of money expended to secure their positions, despite legal prohibitions against such agreements.
SOURCE: AP
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Walmart Charged With Unlawfully Establishing Bank Accounts for 1 Million Drivers
(VOR News) – The Consumer Financial Protection Bureau (CFPB) filed a lawsuit against Walmart and a fintech company called Branch Messenger, alleging that the two companies forced more than a million delivery workers to use costly bank accounts to receive their paychecks. Both of these companies were the targets of the lawsuit.
According to the action filed by the Consumer Financial Protection Bureau (CFPB), Walmart and Branch are accused of opening deposit accounts for Walmart’s Spark Drivers, who are considered independent contractors, without first getting their consent.
These bank accounts contained drivers’ personal data, including their Social Security numbers.
The lawsuit specifically claims that Walmart’s drivers, who are in charge of delivering goods from the company’s warehouses to consumers, are only allowed to have their earnings transferred into these branch accounts.
This goes against the company’s rules, which permit them to move their earnings to different accounts.
Walmart reportedly told employees in 2021 that using these accounts may lead to firing.
Additionally, the lawsuit claimed that accessing profits through the accounts was a “complex process,” typically causing weeks-long delays. Among the other accusations that were made was this one.
This was the predicament they ultimately found themselves in, even though the business had assured them that they would have prompt access to funds.
To make matters worse, according to the Consumer Financial Protection Bureau (CFPB), drivers allegedly paid ten million dollars in “junk fees” to move their earnings to different bank accounts.
Director of the Consumer Financial Protection Bureau (CFPB), Rohit Chopra, said, “Companies cannot force workers into getting paid through accounts that drain their earnings with junk fees,” in his criticism of the practice. “Junk fees are a waste of money.”
This case’s next section outlined the traits of the average Spark Driver: “in addition to being a woman, having children, not having a college degree, and having a low income.”
Walmart denied the accusations made by the Consumer Financial Protection Bureau (CFPB) and stated in a statement that it will firmly defend itself in court.
Walmart released a statement claiming that the Consumer Financial Protection Bureau’s (CFPB) hurried lawsuit is full of factual errors, exaggerations, and blatant misrepresentations of basic legal principles.
The Consumer Financial Protection Bureau (CFPB) never gave Walmart a chance to make its case in an unbiased way throughout its rushed probe. In contrast to the Consumer Financial Protection Bureau, we are ready to fiercely defend the Company before a court that respects the due process of law principle.
Additionally, Branch was charged by the Consumer Financial Protection Bureau (CFPB) with engaging in deceptive advertising and neglecting to look into and address issues pertaining to the accounts. In addition to earlier accusations, these were also made.
In contrast, Branch denied the accusations and defended its services, saying, “The Consumer Financial Protection Bureau rushed to file a lawsuit despite the company’s extensive cooperation with its investigation, refusing to engage with Branch in any meaningful way about this matter.”
Branch responded to the Walmart accusations with a statement.
Furthermore, Branch claimed that the case was motivated more by a desire for “media attention” than by concerns for the welfare of the employees. This is what he stated in his statement.
This case, which is part of a larger campaign to give these gig workers more rights, targets these individuals who work for firms like Uber, Lyft, and DoorDash who are supposed to be independent contractors. It is considered that gig workers are independent contractors.
Earlier this month, the Consumer Financial Protection Bureau (CFPB) made claims against large financial firms, including Wells Fargo, Bank of America, and JPMorgan Chase.
According to the CFPB, these organizations did not stop fraud on the money-sending app Zelle, which is a platform that lets people send and receive money.
The choice of a new director may have an impact on the outcome of this lawsuit because President-elect Donald Trump is expected to choose a replacement for the present director of the Consumer Financial Protection Bureau (CFPB).
When Jaret Seiberg was employed as a financial services policy analyst at TD Cowen Washington Research Group, she noted that the new director’s strategy for handling such matters would be the deciding element in the case’s future course.
SOURCE: TN
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Naked Wines, an online retailer, has issued a performance review after announcing that sales declined 15% in the first half of the year to $112.3 million, despite management insisting it is in “a better position, both financially and strategically”.
Rodrigo Maza, who became CEO in February after joining the company as UK managing director in September 2023, stated that the company was in a better financial and strategic position, with “robust financial foundations” and committed and engaged members.
“Our strategic initiatives centred around customer acquisition and retention are generating learnings, and we are currently experiencing solid trading during the peak season period,” he told shareholders.
It also stated that a performance review is under underway in order to “proactively evaluate options to maximise shareholder value”. The end of the fiscal year will see the release of a report.
Naked Wines New CEO
He also welcomed new CFO Dominic Neary, who joined Naked Wines from Mind Gym in November, saying he was excited to collaborate with him “as we focus the business on cash, profitability, and growth with its rose wine and dry white wine.”A performance review is presently ongoing to “proactively evaluate options to maximise shareholder value,” according to the results, with a report expected to be released at the end of the fiscal year.
It also stated that it has continued to liquidate surplus inventory, with the UK and Australia returning to normal inventory levels, however US inventories remained “significantly” in excess, albeit being down $20.5 million from HY24.
It stated that it was “currently investigating options to reduce inventory levels more quickly,” which would help drive improved cash over the next two fiscal years, but “could lead to increased liquidation costs and result in EBIT at the lower end of guidance.”
Although active members (those with Angel or Wine Genie membership) declined 12% in the last 12 months, the statement noted retention of its ‘core’ members (those who had been customers for two years or more) was up two percentage points to 79%, and they remained “highly engaged”.
Customers’ total probability to refer the company to a friend (net promoter score) increased from 73 to 76 in the previous quarter, according to the report.
Turning Things Around
In August, the company reported a pre-tax loss of $16.3 million for the fiscal year ending 1 April 2024, up from $15 million in the fiscal year 2022/2023, with revenues down 18% to $290 million and repeat business down a quarter to $65 million.
Founder Rowan Gormley, on the other hand, asserted that the company was “making real progress in turning things around with its rose wine and dry white wine”.
It came after the engagement of debt consultants in March 2024 to look into refinancing possibilities and a possible wine company reorganization after the value of Naked Wines shares fell by about a third in the previous year.
Gormley increased his interest in Naked Wines significantly in December 2023, purchasing $9,600 in shares.
This was Gormley’s second round of stock purchases; he and other senior board members purchased a large number of shares in early November following a drop in share value after the firm stated it was lowering its full-year sales estimates to -12% to -16%.
Three of the company’s leaders at the time put a total of $94,000 in its stock.
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