Disaster hits BMW, VW, Toyota & Honda - millions of cars sit idle

there is literally hundreds and hundreds of thousands of cars sitting right now in dealerships all over China that were made by Toyota Honda BMW Mercedes Audi Volvo Volkswagen Etc there's about to be a new rule come into place in only a few months time there's no way to sell them there's actually no way these automakers can even sell these cars they're discounting them to the point where they are going to lose billions of dollars because China is about to Institute a new admissions rule which will mean these cars can't actually even be sold this is a catastrophe for Legacy auto the fact that mainstream media isn't reporting on any of this is it's crazy it's absolutely insane they don't even care but we're talking about this is a global catastrophe it's happening right now and they're just pretending or don't even know that it's happening probably don't even know hello my friends welcome to the channel great to see you thank you for tuning in today we saw X punks earnings big problems big problems I want to talk about that in a different video but I'm going to show you the difference between x-punk and Tesla why companies like explanation Neo are finding it hard to make profits versus Tesla there's one little reason that people don't realize one big difference between them Xbox just went out and said it they just went and said hey this is why and it's sort of like well we've been saying that about Tesla for a long time you need to do that you need to make that change however probably even more significant in fact much more significant than anything about Tesla or x-pun is what is happening in China because China is about 35 of the global car market but more importantly 75 of all EVS are made in China 50 of the Volkswagen group The basically the equal biggest automaker conglomerate in the world 50 of their profit worldwide comes from China and they just reduce their prices by massive amounts between 7 000 and 10 000 US Dollars their EVS were already affordable they're already cheap weren't selling they're just discounted to the point where they have to be losing an insane amount of money per car Volvo even Volvo they have a good name in China unlike all the Legacy Brands they even had to do the same thing they released their UAV with a 30 000 US dollar discount thirty thousand dollars over the previously announced price that's the brand new pole star 3 by the way crazy what is even worse than all the fact that what is even worse than all this is the current inventories now before I talk about the inventory of these Legacy automakers which is disastrous it's the worst it's ever been in the history of the planet it means that a disaster is sitting on our doorstep right now wanna folks we should mention that if we look at electric car sales last week plug-in hybrids are hybrids EVS look at their sales we can see what exactly is going on it's not pretty it's well it's pretty if you're some water makers I mean really only two Tesla and byd then it's pretty if you're not one of those two it's it it's bad really really bad now Automotive news which is a really good trusted source of news says that Legacy automakers in China right now have the biggest inventory that they've had in a decade or more basically recorded history where we actually knew the inventories of carmakers in China the biggest inventories in other words they have more than two months of vehicles just sitting around in parking lots that are not to do with them BMW is discounting their new three series electric cars by 20 000 US Dollars now that might not sound like that much but if the currently cost fifty five thousand US dollars in the first place that's basically a 50 discount in fact some dealers have discounted them by 50 percent the thing is the majority of cars that BMWs sell are cars that people no longer want now if we have a look at the EB sales last week I'm talking EVS new energy Vehicles now of course new energy vehicles are a reference to plug-in hybrids hybrids and electric cars the majority though in China about 70 are fully electric so really that's where the money is that's where the future is but anyway we have a look at the numbers byd 37 000 sales last week that's according to the insurance registration so this just gives you an idea from a brand perspective for the week last week bod thirty seven thousand Tesla was second in China with seventeen thousand GAC aeon 8400 ruling 5400 so Mary Barrow I'm sure will claim that um General Motors were third place in China in it's pretty funny and Mary Barris comments on there hey at least it gives us some line entertainment she says some funny stuff anyway GAC placed above General Motors I don't know what she's gonna have to say about that but anyway the Willing Homeland mini EV is still a very good seller of course they don't really make any profit on it last I checked it was 27 US Dollars profit per car but who cares I think they're great willing was fourthly Auto next changan Gili Neo Neo had a a well a pretty down week not a great week Julie Neo denza I mean isn't this ridiculous this is dangerous by the sub brand that they haven't given the crap about for years they admit they didn't care about denza they've done nothing they still outsold every Legacy automaker in China when it comes to Nev registrations outsold every one of them for a brand that they don't even care about their football so minimal effort into it I said that publicly now technically Mercedes-Benz would probably say probably claim those sales for their own because Mercedes-Benz owned 20 of that oh it's either 10 or 20 of that joint venture company with byd of course the cars are just building Vehicles Mercedes I don't know they spent a little bit of money on that company they originally owned 50 in that joint venture but bod bought them out and then right if they bought them out they released two new electric cars one of which is on sale now so Billy deer are outselling Mercedes BMW Volkswagen Nissan Toyota every Legacy automaker in China based on a single van a single van that is crazy so next after denza we have the Volkswagen brand with 1 687 sales Denzel outsold Volkswagen with one van x-punk 1635 smart 1495 then BMW 1486 followed by geometry 1412 Cherry 1295 zika 1043 Aura 1036 Nita 988 as you can see Legacy the brands that we know the brands are in the that are in the west represent about 10 of Nev vehicle registrations in China about 10 and it just so happens that these Brands now have massive inventories massive amounts of gasoline-powered cars sitting in their dealerships Gathering dust and it's actually getting worse dealership inventories of foreign Mass Market Brands keep on Rising the average backlog at new vehicle stores marketing foreign Mass Market Brands and producing in China Rose to a 65-day Supply in February I should point out sales from Toyota down 30 this year listen same thing Honda same thing this is their biggest Market in the world really a Japanese car market is peanuts in comparison to China for Nissan for Toyota for General Motors for Volkswagen for BMW their own home country their own home countries are nothing in comparison to the sales and the profits they've previously made were historically made in China and that's changing in a very very short space of time these automakers will have lost insane amounts of money we're talking many tens of billions of dollars it's now going to be going back they cannot possibly gain back this market share why would people think that that would happen it's not going to happen these companies now on average have around a 70-day supply of cars the most that they've had in more than a decade and that increased from a 57-day supply only weeks ago it just keeps on getting longer and longer and longer so what's happening is their factories are basically running it like very minimal capacity apparently most factories for Toyota and China are running at 30 capacity now Toyota is telling you they're telling your they're saying this in North America they're saying this in Australia they're saying this in Europe they're saying oh we have so much demand we just can't make enough cars we have it we have a supply chain shortage so that really actually accurate are they playing another game are they playing a bit of a politics game that's what I think it is now the trade group blamed the increase the trade group as in the Legacy automakers in China blame the increase in dealership stockpiles on racism no actually I know I say that as a joke but I mean some of them have done that some of them have said it's anti-japanese sentiment and when the anti-japanese sentiment goes away Honda in particular said this it's all going to be fine it's all going to be fine when people stop being racist towards Honda because it's Japanese okay for one I lived in China for quite a long time people love the Japanese they look at them as like these being this race where I think oh the Japanese are so cool that is the reason that is really the only reason they buy their cars there's nothing that stands out about a Honda or a Toyota or a Nissan vehicle there's nothing that's like where you go oh hey whoa look at that that's a cool feature tell me what it is if you can think of one I can't think of any now they're saying getting back to what they say the trade group blamed the increase in dealership stockpiles at foreign brands on weak demand for gasoline vehicles as the market transitions more and more to electrified products even the brands themselves finally Legacy auto have admitted they made a huge mistake an epic mistake the biggest mistake they've ever made in their history it is there's no question 35 of the global car market but this is just the tip of the iceberg I mean this is representative of where every every Big Market will be Europe North America China That's 85 of the global car market and Legacy auto are losing most of that now is it this bad for Chinese car brands well we don't know exactly what stockpiles are for Ev only brands we do know Tesla doesn't really have any significant stockpiles at all in China now if you just look at Chinese car brands the stockpiles are around 50 days so it's around 15 better but the problem is it's really hard to tell from that because most of them are in joint ventures with Legacy automakers so where whether or not that data is correct or not I don't actually know however if you just look at the sales charts you can see right B would is already a better selling Marquee than Volkswagen the tire has already turned the race has already been won let me know your thoughts in the comments and thank you for watching bye

Channel: The Electric Viking

Views: 269,588

Keywords: electricvehicles, evs, #electriccars, electricfuture

Id: 81H3gZ56_vw

Length: 12min 16sec (736 seconds)

Published: Sun Mar 19 2023