Inside China Business Japanese teardowns of Chinese electric vehicles by BYD and Nio stun car parts executives in Nagoya
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An exhibition in central Japan showcases tens of thousands of parts, stripped from the world’s top-selling models. Japanese car parts manufacturers were stunned at the advances of Chinese brands BYD and Nio.
Chinese carmakers hold costs down through engineering advances in parts assembly, and with a far higher degree of vertical integration of production. Chinese companies integrate multiple components into one part, and then standardize those integrated parts across multiple car models. This results in far fewer parts per car, faster manufacturing time, and lower vehicle weight.
Industry insiders are increasingly critical of top executives in the US, Europe, and Japan who have been blindsided by Chinese ascent and near-domination of the global car industry. Consultants and engineering experts in China have reported for years on Chinese monopolies of supply chains, engineering breakthroughs, and product quality. Yet the CEO’s and top officers of legacy car brands were seemingly unaware of key developments that were upending their own industry, and which now threaten their survival.
Resources and links:
Nikkei, Japanese tear down Chinese EV’s and don’t like what they see
Wall Street Journal, What Scared Ford’s CEO in China
Small, well-built Chinese EV called the Seagull poses a big threat to the US auto industry
Wired, How China’s EV Boom Caught Western Car Companies Asleep at the Wheel
Inside China Business, Ford Motor CEO visits China, sees existential threats and opportunities, and overhauls the company
Company page, Sino Auto Insights
Closing scene, Lijiang Park, Yunnan
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