In The Manchurian Candidate, an American soldier is brainwashed by Chinese intelligence and becomes a sleeper agent for that country’s communist government. If only they’d have known then that the less lethal and more profitable path would be to start a social network and fly cars to influencers.
There’s a big feature out that talks about how American consumers are being persuaded to desire cheap Chinese cars by American influencers, and on a platform created by China no-less. Is that weird? I’ve been using The Morning Dump to influence you to believe that it’s the “Decade of the Hybrid.” You know who also agrees? Chinese automakers.
General Motors CEO Mary Barra is the highest paid automotive exec in Detroit, which makes sense when you look at the stock price and the company’s overall performance. She can’t have the job forever, and GM left a big hint as to who is going to replace her. Don’t worry, it’s not me.
Across town, Ford makes a lot of hybrids, but it can’t make trucks fast enough to keep up with demand. In fact, it can barely make trucks at all.
‘The Second I Mention A Chinese Car, The Videos Skyrocket’
Every automaker is trying to use influencers to convince people to buy their cars. This is nothing new. Six years ago, a typical launch for a car in the United States was 90% journalists and maybe 10% influencers. Many of the launches today have whole days just devoted to influencers, and the split is closer to 50/50.
It’s a good strategy. I find the traditional journalists at launches are the first to the bar, the last to the briefing, and produce nothing more than a mostly replaceable bit of copy published with manufacturer photos. The influencers grind. They produce reels! They post to Instagram stories! It’s far more interactive. I have way more respect for that kind of hustle than I do for sclerotic modern automotive journalism. I also think it often creates more value for the automaker that forked over the money to bring people on a trip.
In that context, this Bloomberg Businessweek feature titled “TikTok Makes Americans Want Chinese EVs They Can’t Have” shouldn’t be that surprising or controversial. Isn’t that what everyone does? Just by virtue of being younger and newer, these companies are embracing social media.
The Beijing Motor Show is going on right now, and there are a bunch of influencers (and journalists) there on various automaker trips. We were invited by a Chinese automaker to go, but couldn’t make it work because of timing [Ed Note: Yes, we were invited by a Chinese automaker to go to China to cover Chinese cars that we cannot buy in the U.S. -DT]. Also, they were suddenly more interested in bringing Canadians because Canada is getting Chinese EVs first.
There’s nothing outrageous in this piece, but it’s interesting to see it laid out this way:
Richard Benoit flew to Alaska a little more than a year ago to test-drive a slate of China’s newest electric vehicles, shipped onto US soil to dazzle online car influencers like him. Sitting in the driver’s seat of a sky-blue Chery iCar 03, Benoit marveled at the SUV’s roomy interior, widescreen digital display with built-in karaoke and jaw-dropping price tag: $24,000. “Now I understand why they don’t want these to come to America,” he said in a video he posted on YouTube. “This is insane.”
Titled “I drove the cheap Chinese cars that are illegal in the USA. Now I know why,” the video has since racked up nearly 2 million views. Benoit says his American subscribers can’t get enough of the sleek, affordable vehicles from Chinese brands including BYD, Xiaomi and Zeekr that flood their social media feeds—yet aren’t for sale in the US. “The second I mention a Chinese car, the videos skyrocket,” he says, when reached by phone from his home in Massachusetts. “Americans want these cars—they just do.”
Obviously, we recently drove a bunch of Chinese cars in America at a press event and the takeaway was that they’re familiar and pretty good. The market is young and Chinese consumers are very tech-forward, so there’s a lot of fun ideas in these cars that look interesting to Americans. Ford’s CEO famously didn’t want to give his borrowed Chinese car back.
Additionally, China has heavily subsidized battery development and has massive overcapacity issues and differing standards that makes Chinese cars appear cheaper than they really are, or ought to be (to say nothing of credible reports of problematic labor practices). A $10,000 Chinese car could easily be a $20,000 Chinese car here. Plus, these companies usually aren’t under the same pressure to be profitable as other automakers.
It feels strange, though. The fact that a lot of this is happening on TikTok, which is a platform created by Chinese company ByteDance, is strange. Even if influencers aren’t being paid directly by carmakers to talk about their products (which, if disclosed, is totally legal and fine), there’s a sort of secondary payment to these influencers as they get compensated by the platforms themselves for engagement. I haven’t seen any evidence that Chinese automakers are forking over cash to boost this content, but I wouldn’t be surprised, either. One of the companies doing this is DCar, which is itself a spinoff of ByteDance, the company that created TikTok.
The oddest bit is that, due to tariffs that go back to the Biden Administration, bringing Chinese-built cars here seems remote, no matter what the appeal might be. Americans don’t so much crave cheap cars as they crave nice cars that happen to be affordable. Some of the interest in Chinese cars is probably due to the fantasy of having their nian gao and eating it, too. It’s possible that Chinese automakers are planning for a future where those rules are relaxed following the planned meeting between President Trump and Chinese President Xi Jinping.
Either way, I do think that Forrest Jones, who often features Chinese cars, makes a good point in the kicker of that piece:
He knows showcasing them in America is controversial but thinks competition is healthy for the industry. “Even if we don’t get them here,” Jones says, “I would like consumers to know what’s out there and have that ammunition to demand more from the brands we do have access to.”
This is absolutely correct. American brands aren’t going to get better until they acknowledge what makes Chinese cars appealing that isn’t related just to cost.
China Is Excited About Hybrids, Too!
It’s the “Decade of the Hybrid” y’all! Even China, which builds all those fancy EVs all those influencers seem to love, has a strong yearning for hybrid cars. What’s happening here?
Nikkei Asia explains that hybrids got overlooked by Chinese automakers due to the lack of subsidies, which gave an advantage to Japanese carmakers with more hybrid experience:
“The cost of our HEV solution is nearly the same as our plug-in EV solution,” Wu Jian, an executive at GAC, said in a 2021 interview. “But when the price tags are similar, consumers are more willing to buy plug-in cars that are not only eligible for a green license plate but also exempt from purchase taxes,” he added, referring to the registration plate that offers perks such as exemptions from certain traffic restrictions.
All of a sudden, though, Chinese automakers are showing new hybrids. What’s going on?
The shift has been driven by reduced state tax incentives for EVs and plug-in hybrids starting 2026, as well as a regulatory change requiring automakers in China to reach an average fuel economy of 3.3 liters per 100 km in 2030, said Yale Zhang, managing director of Shanghai-based consultancy Automotive Foresight.
“If there are still fuel-powered cars in China in the future, they will largely be HEVs,” Zhang said. “I forecast that carmakers will stop launching traditional internal combustion engine models, starting next year.”
Electric cars for some, hybrids for others, and tiny Chinese flags for everyone else.
Sterling Anderson’s 40 Million Reasons To Stay At GM
It’s been a while since America had a big and tall automotive exec. Was the last one Lutz? It might have been Lutz. Or that one guy, Reid Landman. Either way, the next one might be Sterling Anderson. Why?
The Detroit Free Press noticed something interesting in the company’s executive compensation filings:
GM’s board also approved an elaborate, one-time-only new hire award package for an executive that media reports have said is on a short list to replace Barra ― Sterling Anderson.
Anderson’s hiring package totaled $40 million, a one-time deal that would be paid out through 2027. After the deal’s terms conclude on July 29, 2027, Anderson will receive a regular compensation more in line with other GM executives, according to GM.
Basically, Anderson has to meet certain goals and stick around at GM to keep the money. This could be meaningful or it could just be something normal. Maybe he’s just doing a great job. Or, maybe, they don’t want him to get poached. Last time I suggested this a GM spokesperson, unprompted, emailed to let me know this was all speculation. Let’s see if that happens again!
‘It’s A Heap Of A Mess’ Says Ford Dealer
As a Texan, the first two signs of spring were the arrival of fields of bluebonnets and Truck Month. I think this Truck Month might have been ruined, as a dealer points out to Automotive News:
Chuck Anderson Ford, less than 20 miles from Ford’s F-150 plant in Kansas City, Mo., usually starts Truck Month with about 70 of the pickups. This year, it had only nine.
“It’s a heap of a mess,” Nick Anderson, the dealership’s general manager, told Automotive News. “Outside of COVID, I’ve never seen an F-150 shortage like this.”
Ford dealers around the U.S. are grappling with an undersupply of a vehicle that’s a reliable profit pillar and the leader in an intensely competitive segment. The automaker is scrambling to boost production but has signaled that inventory levels may not stabilize until the second half of the year.
None of this is a secret. Ford has said in filings that the two fires at its aluminum provider in New York is going to slow down supply until later this year. Still, the extent of it seems to be profound.
What I’m Listening To While Writing TMD
Coachella sounds like it was a party this year, and there’s no one I’d have rather seen than the immeasurably great Kacey Musgraves. Watch her as she sings “Uncertain, TX” and sways along to a Tejano accordion. I love Tejano accordion.
The Big Question
Have you been exposed to influencers peddling Chinese cars? Has it worked? [Ed Note: I also want to ask: Are you convinced that Chinese cars are, as a whole, better than U.S. ones? -DT].
Top graphic images: TikTok; YouTube; BYD
I have not exposed myself to influencers. I think that’s how you go viral.
I doubt Chinese cars are better than cars we can get domestically, but I don’t know that. They probably have a range of crap can to lux just like everyone else.
The closest I’ve gotten to a Chinese car is when I saw a BYD driving south on 101 in California a few months back. What interests me about the Chinese cars, their EVs in particular, is the price, a new car for $20,000? Also the variety. Everything from trucks and vans to two seat sports cars. I doubt we’ll see them here though.
Most Chinese cars are wildly styled but bland to drive. Some of them crap, some are fine. Question remains if Chinese cars are having the same level of quality and after sales service in 3-4 years after purchase.
Thinking the same, plus crash testing.
Crash rating is easy enough to find. There are many Euro NCAP crash videos on YouTube.
I have been exposed to fashion, culinary, tech and travel influencer J. Torchinsky’s experiences with a Chinese luxury car.
I’d be curious what the metrics show, if the mention of a Chinese car is indeed getting automatic American views, orrrrr if that is also part of how Chinese manufacturers are rewarding influencers. Mention a Chinese car, get a million views from chinese IP addresses, get boosted on the platform.
This.
Maybe. But also, seeing what looks like a luxury car but priced at $20K gets eyeballs all on its own.
“It’s a heap of a mess” feels like the most Kansas City way to put it.
Chinese cars will only be cheaper than cars manufactured elsewhere until they have their desired market share and the competition has been eliminated. Prices will go up once they no longer need to undercut once they monopolize the market.
What will be the value prop for a Chinese car once they are priced nearly identical to other options from other global manufacturers?
It’s the Wal-Mart method, except there’s dozens of automakers trying to copy it and use it against everyone all at once, including the domestic competition.
That’s a good example but this strategy has been around for much longer than Walmart.
Absolutely, just using the best known example of it.
Except walmart still seems to have the lowest prices.
They still have a major competitor to fight with for market share. And they aren’t losing money. They are just profiting less, more likely, their suppliers are profiting less.
I should have been more nuanced: I don’t think anyone is arguing Walmart is to blame for higher prices. Even if they are not the lowest, they’re definitely not the highest. For my whole life ppl have been saying Walmart’s play is to raise prices once they control the market. I’m sure they would love to do that, but clearly are unable for whatever reason.
Depends on the region, it seems. My grocery bill sank dramatically when I switched from Wally World to Aldi.
I remember when Walmart didn’t have groceries…
Same! Shoot, I remember when my family used to get groceries from Kmart when I was a kid. The building is still there, too, even though its only tenant since Kmart’s closure is a Spirit Halloween every fall.
In the small town I lived in as a kid there were two independent grocery stores and a Safeway. When walmart moved in and started selling groceries the independent stores closed and the last time I was there Safeway was a ghost town.
I have no interest in following the advice of influencers on social media. Especially when it comes to cars. I’ll stick to whats tried and true- Honda, Toyota, Mazda.
60 years ago you might have said “I have no interest in following the advice of writers in a magazine. Especially when it comes to cars. I’ll stick to what’s tried and true- Ford, Chevrolet, Chrysler.
And here we are today.
The software defined car is more disposable and less durable than the Japanese imports of the 70s. I don’t really want a screen on wheels that has to be thrown away at the end of the lease.
Granted, however that describes all cars today, not just China’s. I’ll still take one of today’s cars over a 1970s Japanese car as a daily driver.
I have no interest in following social media.
Lutz on Anderson: LEAVE HIM ALONE!
How would most Americans know whether they want Chinese cars or not? Most haven’t seen them much less ridden in one or driven one. I’ve ridden in a few in Mexico but not everybody has that experience.
“Have you been exposed to influencers….?”
I like how this is phrased as if my health care provider were asking if I was exposed to measles. It’s fitting. We’ve all been exposed. Some of us just don’t get infected.
Autojournalism may now be “sclerotic” (nice choice of words!), but I find the influencer movement to be exceptionally obnoxious. The name says a lot. Though I suspect that as it matures and develops it will include more and more of the knowledgeable and professional type.
Its hard to be convinced by people you can’t stand hawking products you don’t care about on platforms you don’t visit. So far I’ve managed to stay safe from “influencers”.
You think there’s no influencers here?
Yeah, we are all the pocket of Big Wagon.
Influencers did not try to convince me to like Chinese cars. I went to China. I drove an Ora Ballet Cat. It was nice. I want it. Also, it looks like a VW Beetle.
Nobody has yet tried to sell me a Shineray E3L.
I would say Chinese cars will be competitive, but the thing is (as noted) they are not playing on a level field. They have so many artificial (and some horrifying) price-lowering measures in place, it’s like they are putting their fingers on the scales in their favour. They are cheaper, but at what cost?
Then I have questions about safety: how will they do in IIHS crash testing? Government testing?
By the same token, as a Canadian, I am hesitant to buy an American product right now (no offense, eh?), but the nature of our integrated auto industries makes those waters as muddy as a tractor pull. We are considering a new minivan, but our two main candidates are produced in the US by Japanese companies. And my wife isn’t sold on Kia or Chrysler at all.
I guess all we can do is do our best to meet our wants and needs in the best way possible. When we can.
No offense taken. I 100% understand the Canadian desire to avoid all thing US. I listened to parts of Carney’s recent speech about that, and I found myself nodding in agreement. I also found myself longing for a leader able to string multiple coherent sentences together without insulting someone or threatening war crimes.
Being that they would already need to follow international safety standards: you can reference Euro NCAP’s site and find actual test data for individual vehicles and decide for yourself for those that have published test data on them.
I know it’s not direct apples-to-apples with IIHS – but neither is the NHTSA’s testing.
At this point I don’t know if there’s a part of social media that hasn’t been infested by bots and astroturfers pedaling commercial and political interests. From farm & ranch forums to diy message boards to r/buyitforlife, from comment sections on news sources to entire “news” websites that are paid for and run by hidden interests to promote certain viewpoints.
Anyway, when I see a comment pushing a “free market” so we can have cheap Chinese cars I view it with the same eyeroll as when I see comments pushing “Texas Secede!”
The internet has become a chaotic jumble of psy-ops.
And most of them take Chinese “investment.” Reddit took it in 2019. When did Reddit start to suck ass? 2020 and onward.
I am impressed by the Chinese cars but I remain highly skeptical that they are able to be produced at the prices they claim. My concern is that they are being subsidized by the Chinese government to support their growing auto industry and grab market share from or perhaps even eliminate competition. China has been very interested in growing their auto industry and their joint venture layout has shown they are willing to play the long game to do what it takes. The quality has been rapidly improving and is now on part with may established automakers, I remain skeptical about the price points and if they will be maintained once they have a foothold in western markets.
It’s not a concern, it’s a reality.
Being concerned about reality is like half of what I do.
Yeah, luckily here in the god ol’USA we never subsidize big auto. Well, we have and do but it just goes to stock buy backs and the consumer doesn’t get anything out of it.
I never said that.
To misunderstand the (blatantly obvious) nuanced difference of state ownership versus not is indeed puke.
Listened to and interesting podcast recently that talked about why companies do buybacks now instead of taxes. The answer is the different way they are taxed.
It’s easy to see subsidies when it’s in other countries. I have no doubt our tax code has some absurd carve-outs that exist only to benefit automakers. And that folks in other countries complain about it the same way we do.
The IRA EV rebates were explicitly us subsidizing the car industry. To me, the big difference was that we were only subsidizing cars built and sold here, not trying to predatory price other countries to make their locally built cars uncompetitive.
IMO the CCP “subsidy” goes far beyond just monetary. State ownership means who cares if we lose money as long as we gain market share. Employment laws? What are those? We are the law.
Some Chinese automakers have state ownership – others like BYD do not.
Sure, but the entire Chinese made vehicle market has benefited from state intervention in the form of joint ventures with western automakers. Just another form of subsidy, it’s just not direct cash to automakers from the CCP. It’s actually kind of brilliant and I shake my head every time I think about all of the IP western automakers have given away in the name of short term profits.
They did benefit from those joint ventures in the past. They haven’t been required since 2018. We did train our competition
If we were smart we would be treating China like we did Japan in the 80’s and also require Chinese automakers to partner with a JV for access to the US market. Instead we just want to ban Chinese automakers instead of learning from them.
This is a key distinction, big difference between using subsidies to foster local production and using them to conquer foreign ones.
I can’t really say the USA is interesting is selling cars to other countries anymore.
We do like to sell corn and soybeans and have subsidized them to the point that we have bankrupted farmers in other countries.
1)No
2)No
3)No
“Think of how stupid the average person is, and realize half of them are stupider than that.” – George Carlin
I do find it interesting that the Canadian response to being bullied by a hostile superpower is to cozy up to a different hostile superpower.
As well, for all the complaining about new cars being screens on wheels, I guess the problem is just that they aren’t cheap screens on wheels because that seems like 90% of the appeal of Chinese cars, that they’re cheap and loaded with flashy gimmicks.
It’s a Sophie’s Choice for us. We picked the more predictable superpower that wasn’t actively threatening us.
What was the alternative?
over-reactive, short term thinking, long term regret will follow. Have fun with China. I can’t wait until they belt and road you.
Michigan would do with some investment into roads.
We’re not discussing the 2024 election results. We’re asking “what was the alternative?”
This reply is much more diplomatic than what I was going to post.
There was about 3 revisions before I settled on that.
When there’s 200ish countries, pretty sure it’s not an absolute binary that we have to ally ourselves with either the US or China. I mean, I understand trying to sell our resources to a massive buyer and the deals it takes to get there, it’s just how much vocal excitement there is to buy cars from a country that the government expressly acknowledges has tried to interfere in our democracy.
Mostly, I’m just going to be bitter if we get the BYD Dolphin before the Renault 5.
The US is ACTIVELY interfering with our democracy. Alberta separatist groups getting funded by US sources.
Yeah, so no maple syrup or ketchup chips for the US *or* China! They can both take off!
“ Canadian response to being bullied by a hostile superpower is to cozy up to a different hostile superpower.”
As a Canadian, I see Trump and his gang of crooks as more hostile to Canada than China.
As long as the MAGA-Trump Republicans are in charge, and as long as US Voters keep voting for those dipshits, I see China as the lesser of the two evils.
For one thing, unlike the USA, China hasn’t been making threats to Canada’s sovereignty or insulting our Prime Minister.
I’ve never met an influencer but I’ve never gone to Only Fans.
Why do they show Chinese cars there anyway?
The American Dream is alive and well. It’s just in China now.
No and no.
The term influencer bothers me and we need to define influencer. Is Todd at Project Farm an influencer? And no, Project Farm hasn’t discussed Chinese cars. But what about The Autopian, or any of the dead tree automobile enthusiast magazines? Jay Leno test drove a Slate and raved about it. Is Jay Leno an influencer? Doug DeMuro seems to call himself an influencer. What characterizes an influencer?
I generally consider an influencer as someone who has a financial advantage promote a product/religion/politician to get you to buy/vote/join whatever it is.
I am paid the same no matter what I say against or for the RV industry. Jason doesn’t make any extra money by gushing about his 2CV. A freedom we enjoy at the Autopian.
However, someone like a Dodge “Badassador” has a financial gain from praising Dodge products. YouTubers gain from saying nice things about Chinese car companies or by peddling crap like Established Titles or Factor. I often end up on press trips where I’m one of the only people there reviewing the product, and not flooding social media with videos about how cool you’ll be if you buy the product.
To me, Todd from Project Farm is not an influencer because he buys every product featured on the channel and the one he recommends comes only after testing. He is not being paid to promote a specific product.
So yeah, I think that’s the big difference. Are you more or less paid to promote something? If yes, you’re probably an influencer.
Agree with your definition. Thank you for your reply and fascinating contributions to Autopian.
“What characterizes an influencer?”
They are fucking obnoxious as hell
In the EV arena, I would argue yes. As a Canadian who plans to buy an EV before year end, I can all but guarantee that it won’t be a US brand or US manufactured foreign brand.
Elbows up!
At this point, it’s not even elbows up, it’s just picking the better option.
I don’t blame you there.
Chinese cars aren’t really even available yet in Canada, right? Ignoring the anti-US-sentiment aspect of your recent comments, how do you know (factually) Chinese cars are better or worse than any other electric vehicle option available from other manufacturers (US, EU, Korea, etc)?
All I have is reviews, which are glowing. The most popular SUV on sale in the UK at the moment is a Chinese one.
until someone like Munroe can fully tear one down and compare the underbelly apples to apples, it’s all going to be subjective.
That being said, a Korean EV is on my short list at the moment.
I think Munro did a full teardown on a BYD Shark, a plugin hybrid pickup.
Not a full EV, but interesting nevertheless.
Now I have something to look up this aft!
Thanks for the honest response. I just wanted to point out the power of influencers and marketing in general.
You likely (and lots of other people also) have first hand experience with electric vehicles but can be swayed to deprioritize or overlook that experience and knowledge by well placed marketing and influencing. You don’t actually know that Chinese cars are better. Influencers are telling you (and everyone watching/listening) that they are better.
Our brains can be easily tricked to see these two datasets (marketing and personal experience) as being equal in value and validity. But they are not equal.
Amen. Just ask yourself, why do you use the laundry detergent you use? Have you bought a bunch and tested them out? Maaaaaybe you’re one of those ppl who trusts consumer reports to test for you but probably you are buying it based on “preference.” And unilever et al have spent an ugodly amount of money shaping that preference and convincing you it was your idea.
Exactly! Influencers work to cultivate a friendship illusion with their audience. Companies know you are a lot likelier to choose your detergent based on the recommendation of a friend than an online banner ad or tv commercial.
I use Tide because that’s what my mom used.
Don’t you crack open the lid of each one on the shelf, take a sniff, and decide based on which one you thinks smells best?
I don’t listen to influencers, I use actual reviewers from other markets where the cars are sold.
I compare Australian offerings a lot because I predict Canada is going to eventually shift to a similar vehicle landscape.
More V8 utes for Canada. I can get behind that idea!
And it’s working, too. Hardly a week goes by when I don’t get a text message from my mother, a cousin or a friend asking “Why are Chinese cars so much cooler than ours? Why can’t we have this?”
And my response is always: “Sigh. How much time do you have?”
I’ve both seen the coverage from American influencers and had some hands on time while I’ve been overseas. Chinese cars are largely good, especially if they can arrive at the price they’re pushing them in the rest of the world.
People here in the comments complaining about dubious labor conditions and resourcing seem to forget that trash happens here too. It was within the last five years that a factory in the South got busted with child labor (I believe it was a Hyundai factory) and that many American companies outsource production to take advantage of similar conditions.
Yes some automate 1 suppliers in Alabama. Not only child labor but also prison slave labor.
I forgot about the horrors of the private American prison system.
Not just car companies either: McDonalds, Wendys, Burger King, KFC, Applebees, Tyson Foods, Best Western and more.
Birmingham Police used to snatch people of the street and send them into the mines when US Steel needed more coal.