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The Car Coach: Global Auto News on China,Tesla and U.S. auto sales

Written By | May 11, 2020
Tesla, China, US Auto Sales, The Car Coach

As the Coronavirus starts to subside the global auto industry is trying to get back up and running There are a few obstacles but the plans are in place to restart production. Today we take a quick look at Elon Musk and Tesla in California, the US Auto Industry, and China.

China

During the month of April, China’s auto sales increased for the first time in 21 months after an almost two-year decline. Although it was minimal, it was representative of consumers heading to dealers to consider an auto purchase. China is incentivizing consumers with electric vehicle credits and reducing registration fees.

China is planning to be fossil fuel-free by 2025. At this point, they may have additional difficulties obtaining that goal.

Tesla

Tesla was scheduled to resume production at its Shanghai factory in China but abruptly suspended production last Friday. A leaked email showed Tesla is looking to restart production in its U.S. car plant in Fremont, CA. However, the State of California and the county will not let him restart production.





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The result was an angry quantity of tweets that Elon Musk wants to leave California for Texas or Nevada as Calirestrictions are racist and anti-business.

U.S. Auto Industry

The U.S. auto industry is preparing to reopen but the U.S. heavily relies on supply parts from plants in Mexico. About 40% of the imports come from Mexico, a country which is on lockdown. The supply chain has to get moving before the production line in order to keep vehicles rolling off the lines and to dealers for sale.

There’s been a massive drop in U.S. car sales since the start of the outbreak. Retailers have sold nearly 800,000 fewer cars than typical in past years. This is causing some lawmakers to push for stimulus here as they did in 2008 with the Cash for Clunkers programs.

Obama’s Cash for Clunkers was an utter failure but some automakers and government official are putting their hands out again for Cash For Clunkers 2.0.

In the below video, we discuss the current state of the auto industry and how it can affect you.

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Lauren Fix

Lauren Fix, The Car Coach®, is a nationally recognized automotive expert, analyst, author, and television host. A trusted car expert, Lauren provides an insider’s perspective on a wide range of automotive topics and aspects, energy, industry, consumer news and safety issues.