Auto File: In China, AI takes drivers’ jobs
By Victoria Walderse
Automotive Correspondent
Victoria.Waldersee@thomsonreuters.com
Greetings from Germany, where I woke up this morning wondering how much electric vehicles will have featured in Elon Musk's interview with Donald Trump on X last night and thrown off my plans for this newsletter. (I am filling in this week while Nick Carey enjoys a much-deserved break.)
It seems, however, that the two men - once they got past the technical glitches and started talking - didn't discuss cars much, other than a passing comment in which Trump told Musk he had an "incredible product" - but "that doesn't mean everyone needs an electric car".
Trump has railed against government funding to boost electrification, including the types of subsidies, loans and tax breaks which have been instrumental to Tesla's growth.
Even as Musk has embraced Republican Party rhetoric and said getting rid of subsidies would "only help Tesla", his company continues to lobby for U.S. and state benefits created and championed by the Democrats, from stricter vehicle emissions rules to banning the production of most new gasoline cars by 2035.
Days after Musk endorsed Trump in July, one user on X asked Musk if he would comment on Trump's views on EVs. "It will be fine," Musk responded.
Even if Musk thinks Tesla could do without government help, other EV makers are struggling to break ground in the United States, with new EVs and plug-in hybrids making up just 18% of new sales in the first quarter of this year - compared to 50% in China in July. We know Trump doesn't like losing to China... so will he just bow out of the EV race if he becomes president? Whatever he chooses, it sounds like Musk will have his back.
Onto today's Auto File...
China's drivers fret as robotaxis pick up pace, and passengers
Who's breaking WTO rules - China or EU?
Europe's EV leasing model at risk of breakdown
AI really is taking their jobs
Liu Yi, a 36-year-old ride hailing driver in Wuhan, China, is among the first workers globally to face the threat of job loss from artificial intelligence.
In his city of Wuhan, China, a firm called Apollo Go is one of a handful of firms to receive approval for testing robo-taxis without human-driver monitors and plans to deploy 1,000 vehicles by year end. "Everyone will go hungry," he told reporters Sarah Wu and Ethan Wang, who investigated the story for Reuters.
Apollo Go, owned by tech giant Baidu, says it will create jobs in monitoring, testing, and analyzing data from its trials. But Chinese social media shows scores of users worried that driving jobs - often a last resort for lower-class workers lacking qualifications - will disappear, with hashtags like "Are driverless cars stealing taxi drivers' livelihoods?" topping searches in July.
Europe stands firm on China EV probe
Things are hotting up between China and Europe as negotiations continue over the European Commission's proposed tariffs on EVs made in China.
The latest episode of the tit-for-tat happened last Friday, when China filed a dispute with the World Trade Organisation alleging that the EU's temporary measures violated its rules - an ironic accusation considering this all started because the EU said China was the one distorting competition with its subsidies.
The European Commission responded, saying it was studying the filing but was confident that its investigation was WTO-compatible and remained on track.
These kinds of disputes are supposed to be resolved through negotiation, but if that's not possible, members can request a panel to be formed to settle the matter. Still, those processes are complex, beset with hurdles and take a long time.
Symbolically, the exchange of the past week shows that tensions are running high. Xi Jinping’s economic model relies on exporting high-tech goods like electric cars, and with either U.S. presidential candidate unlikely to allow Chinese EVs (or many other high-tech Chinese products) in, Europe is China’s biggest hope for a profitable export market.
Leasing firms beg for mercy
Weak EV demand has been talk of the town for some time. What hasn’t been talked about enough is the role that leasing firms play in that story.
Europe’s auto market is driven by leasing firms. Around 60% of new cars of all fuel types are leased, rising to 80% of new EVs, according to data from market research firm Dataforce analyzed by environmental group Transport & Environment.
When leasing firms set their prices, they account for how much a vehicle will depreciate over the leasing period - typically three years - based on estimated resale prices, or 'residual values'.
If that resale price ends up being lower than anticipated, leasing firms lose money. Unfortunately, that’s what’s happening with EVs. Second-hand prices are falling because customers are worried about everything from charging infrastructure and battery life. Until those concerns are addressed, companies say any move by regulators to mandate electrifying more of their fleets would damage their business and push prices further up.
Essential Reading
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Huawei readies new AI chip to challenge Nvidia in China
Fear fades in U.S. stocks, but return to calm unlikely (Breaking Views)
FAST LAPS
Indian automaker Mahindra & Mahindra (MAHM.NS) and China's Shaanxi Automobile Group have agreed to set up a $3 billion joint venture to build a car manufacturing plant in India and are awaiting New Delhi's approval, according to sources. Mahindra has sought a government nod for the Chinese investment, the sources said.
South Korea's land, industry and environment ministries will meet this week to discuss how to prevent fires involving electric vehicles, after a recent blaze caused by a Mercedes-Benz sedan with batteries by China's Farasis damaged over 140 cars and hospitalized 23 people. EV safety worries are just one of many factors slowing down sales.
General Motors is recalling 21,469 electric SUVs in the United States over concerns of an unexpected activation of the anti-lock brake system and will remedy the issue through an over-the-air update.
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Editing by Emelia Sithole-Matarise
متعلقہ اثاثے
تازہ ترين خبريں
دستبرداری: XM Group کے ادارے ہماری آن لائن تجارت کی سہولت تک صرف عملدرآمد کی خدمت اور رسائی مہیا کرتے ہیں، کسی شخص کو ویب سائٹ پر یا اس کے ذریعے دستیاب کانٹینٹ کو دیکھنے اور/یا استعمال کرنے کی اجازت دیتا ہے، اس پر تبدیل یا توسیع کا ارادہ نہیں ہے ، اور نہ ہی یہ تبدیل ہوتا ہے یا اس پر وسعت کریں۔ اس طرح کی رسائی اور استعمال ہمیشہ مشروط ہوتا ہے: (i) شرائط و ضوابط؛ (ii) خطرہ انتباہات؛ اور (iii) مکمل دستبرداری۔ لہذا اس طرح کے مواد کو عام معلومات سے زیادہ کے طور پر فراہم کیا جاتا ہے۔ خاص طور پر، براہ کرم آگاہ رہیں کہ ہماری آن لائن تجارت کی سہولت کے مندرجات نہ تو کوئی درخواست ہے، اور نہ ہی فنانشل مارکیٹ میں کوئی لین دین داخل کرنے کی پیش کش ہے۔ کسی بھی فنانشل مارکیٹ میں تجارت میں آپ کے سرمائے کے لئے ایک خاص سطح کا خطرہ ہوتا ہے۔
ہماری آن لائن تجارتی سہولت پر شائع ہونے والے تمام مٹیریل کا مقصد صرف تعلیمی/معلوماتی مقاصد کے لئے ہے، اور اس میں شامل نہیں ہے — اور نہ ہی اسے فنانشل، سرمایہ کاری ٹیکس یا تجارتی مشورے اور سفارشات؛ یا ہماری تجارتی قیمتوں کا ریکارڈ؛ یا کسی بھی فنانشل انسٹرومنٹ میں لین دین کی پیشکش؛ یا اسکے لئے مانگ؛ یا غیر متنازعہ مالی تشہیرات پر مشتمل سمجھا جانا چاہئے۔
کوئی تھرڈ پارٹی کانٹینٹ، نیز XM کے ذریعہ تیار کردہ کانٹینٹ، جیسے: راۓ، خبریں، تحقیق، تجزیہ، قیمتیں اور دیگر معلومات یا اس ویب سائٹ پر مشتمل تھرڈ پارٹی کے سائٹس کے لنکس کو "جیسے ہے" کی بنیاد پر فراہم کیا جاتا ہے، عام مارکیٹ کی تفسیر کے طور پر، اور سرمایہ کاری کے مشورے کو تشکیل نہ دیں۔ اس حد تک کہ کسی بھی کانٹینٹ کو سرمایہ کاری کی تحقیقات کے طور پر سمجھا جاتا ہے، آپ کو نوٹ کرنا اور قبول کرنا ہوگا کہ یہ کانٹینٹ سرمایہ کاری کی تحقیق کی آزادی کو فروغ دینے کے لئے ڈیزائن کردہ قانونی تقاضوں کے مطابق نہیں ہے اور تیار نہیں کیا گیا ہے، اسی طرح، اس پر غور کیا جائے گا بطور متعلقہ قوانین اور ضوابط کے تحت مارکیٹنگ مواصلات۔ براہ کرم یقینی بنائیں کہ آپ غیر آزاد سرمایہ کاری سے متعلق ہماری اطلاع کو پڑھ اور سمجھ چکے ہیں۔ مذکورہ بالا معلومات کے بارے میں تحقیق اور رسک وارننگ ، جس تک رسائی یہاں حاصل کی جا سکتی ہے۔
