Auto File - Geely aims high

Subaru

07/01/2025 16:00

Jan 7 - By Nick Carey, European Autos Correspondent 
    
Greetings from London! 
Happy New Year from the Reuters Auto File! 2025 looks set to be
another hectic year for the industry. From Trump 2.0 to China’s
automakers flexing their muscles, it promises a wild ride.  
The year has not started well for Tesla, which reported its
first-ever fall in yearly deliveries for 2024. Also, a U.S.
regulator has opened a probe into 2.6 million Teslas over
crashes allegedly involving the carmaker’s "Actually Smart
Summon" feature. 
Once Trump takes office, CEO Elon Musk may be able to get
regulators off his back. But Tesla’s sales decline came despite
lucrative year-end incentives, including interest-free financing
and free fast-charging, to boost interest in its aging lineup  
Chinese rivals meanwhile continue to grow and roll out newer and
better EVs, so when not wading into Germany’s election or making
friends with then falling out with British populist Nigel
Farage, Musk needs to figure out how to get Tesla back on track,
and fast. 
 
Which brings us to today’s Auto File… 
    * Geely’s big goals   

    * Panasonic’s China-free plans 

    * Norway goes nearly all-electric 

 
 
    Geely eyes major growth 
China’s Geely says it plans to sell more than 5 million cars
globally in 2027, a jump of 79% from the 2.79 million vehicles
it sold in 2023 that reflects the diverging fortunes of major
western automakers and the rise of new Chinese rivals. 
State-owned Chery says its sales in 2024 jumped 38.4% to 2.6
million vehicles and it expects to sell more than 3 million cars
this year. And BYD said last month it was on track to sell more
than 4 million cars in 2024 and pass both Ford and Honda in
sales. 
Based on global 2023 sales, 5 million units would have made
Geely the world’s No. 6 automaker. But given declines for many
legacy companies, if it meets its goal then it should be
comfortably among the top five.  
To get there, Geely says it will further consolidate its
sprawling passenger car brands into two units -- Geely Auto and
Zeekr Technology - to target the mass market and premium
segments, respectively. 
Meanwhile, at home Chinese EV makers including Nio and Li Auto
have followed market leaders Tesla and BYD in extending consumer
discounts to the start of 2025, as a price war in the world's
largest auto market has now hit its third year. 
Large sellers like BYD, Geely and Chery will survive that
battle, but many of China’s smaller EV companies will likely get
squeezed out. 
 
Recommended reading: 
    * Hybrids help U.S. car sales to five-year high  

    * Investors cheer hopes of lighter Trump car tariffs 

    * Manhattan’s $9 congestion charge kicks in 

 
    Panasonic wants China-free U.S. batteries  
Tesla supplier Panasonic Energy will eliminate its supply-chain
dependence on China for U.S. made EV batteries as the company
prepares for a fresh round of tariffs once Donald Trump takes
office. 
As a senior Panasonic executive told my Reuters colleagues
Abhirup Roy and Kantaro Komiya in Las Vegas at the CES trade
show, that shift away from relying on China is the company’s
"No.1 objective".  You can read about it here.  
This highlights how Trump's pledge to raise tariffs on imported
Chinese goods has forced companies around the world once again
to reassess their supply chains after tariffs on Chinese EVs
under Trump and then more under Joe Biden. 
Trump has vowed to impose tariffs of 10% on global imports into
the U.S., along with a 60% tariff on Chinese goods.  
The first thing Panasonic’s U.S. business must do regarding
Trump's tariff plans is "not to have the supply chain dedicated
from China," Allan Swan, President of Panasonic Energy of North
America, told Reuters. 
Swan said Panasonic is not only signing up U.S. suppliers but
also helping some of its Japanese and Korean suppliers set up
shop in the United States and tapping those that already plan
U.S. operations. 
 
    EVs dominate in Norway  
Nearly nine out of 10 cars sold in Norway in 2024 were EVs
which, as my colleague Nerijus Adomaitis reports here, puts the
country within reach of having all-electric new car sales by
2025.  
With its sovereign wealth fund, Norway has been able to fund the
transition to electric with generous purchase and tax subsidies,
accompanied by investments in charging infrastructure and
penalties for fossil-fuel cars that other European governments
have only been able to dream of. 
Still, even with new car sales that are nearly all fully
electric, EVs still only account for under 29% of cars on the
roads in Norway and it will take many years to phase them out. 
As a warning of what may be coming for Europe’s automakers, in
just five years Chinese-made EVs have surged to nearly 10% of
all new EVs sold in Norway. 
 
    Less-bad times for Rivian, Lucid  
U.S. EV makers Rivian and Lucid both reported
better-than-expected fourth-quarter deliveries that give the two
companies a little breathing room after a couple of years of bad
news for Tesla wannabes that has seen several smaller rivals go
bust. 
Rivian said its production is no longer constrained by a
component shortage, a hopeful sign for the EV maker as it seeks
to turn its first profit. 
Saudi Arabia-backed Lucid managed to boost deliveries by
lowering prices and offering cheaper financing to drive demand,
which will likely push profitability further out. 
Despite the improvement, both EV makers are still minnows.
Rivian delivered 14,183 vehicles in the fourth quarter and Lucid
handed over 3,099.  
Tesla handed over almost 500,000 vehicles during the quarter. 
Demand for EVs could take a fresh hit as Trump is expected
to reverse many of the Biden administration's EV-friendly
policies and incentives, so Rivian and Lucid still face a steep,
bumpy road to mass production. 
 
    Fast Laps 
    Stellantis, Toyota, Ford, Mazda and Subaru plan to pool CO2
emissions with Tesla to comply with the European Union’s 2025
targets.  
The U.S. Defense Department has added Chinese tech giant Tencent
and battery maker CATL to a list of companies it says work with
China's military. 
A group representing self-driving car companies has called on
the U.S. government to help speed the deployment of autonomous
vehicles and remove barriers to adoption. 
    Hyundai and sister company Kia want to grow their combined
global sales by 2% to 7.39 million vehicles in 2025, after
posting lower 2024 sales and missing their targets. 
Guangzhou-based Pony.ai Inc wants to launch robotaxi services in
Hong Kong, joining Baidu in a race to provide services in the
city. 
    Beijing has passed new regulations to encourage autonomous
driving technology in the city, with authorities planning to
eventually allow driverless public buses and taxis. 
    
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 (Editing by Alexander Smith)