Episode #1270: Ford floats ideas to counter China’s EV push, Detroit rethinks sedans as affordability pressures rise and Amazon proves even tech giants can’t crack physical retail that easily.
- As Chinese automakers creep closer to U.S. soil, Ford CEO Jim Farley reportedly discussed a framework that would allow Chinese brands to build cars in America—through U.S.-controlled joint ventures. The idea? Compete without getting steamrolled.
- Farley discussed U.S.-majority joint ventures with Trump cabinet officials at the Detroit Auto Show.
- The structure would allow Chinese automakers to build in the U.S., sharing profits and tech with American partners.
- Trump recently said he’d be open to Chinese companies building plants and hiring Americans.
- GM opposes any Chinese entry, warning of lost market share and supplier disruption.
- New polling from the north shows that Canadian sentiment toward Chinese-built EVs has shifted sharply: 53% now say it wouldn’t affect their purchase decision and 15% say they’d be more likely to buy—compared to 2024 when 61% said they were less likely to consider one.
- After years of betting big on SUVs and trucks, Detroit may be eyeing a return to sedans as affordability pressures mount.
- GM, Ford and Stellantis are all exploring affordable sedan options, including hybrids priced under $30,000.
- Passenger cars now make up just 18% of U.S. sales, down from 50% fifteen years ago
- As Detroit exited sedans, Toyota’s share of the U.S. sedan market jumped from 12% to 22%
- Dealers say losing sedans cost them entry-level buyers who later would’ve traded up to higher-margin SUVs and trucks.
- “If somebody could build an affordable sedan, it would sell,” said dealer Adam Lee. “We have made these cars so expensive that nobody can afford them.”
- Amazon is shutting down its Amazon Go and Fresh stores, admitting it couldn’t crack the economics of brick-and-mortar grocery. Despite world-class logistics and tech, the company discovered what operators already know: physical retail is a grind.
- Amazon will close Go and Fresh locations after failing to build a scalable, profitable grocery model.
- Grocery is attractive because it’s high-frequency and data-rich—fuel for Amazon’s $21B ad business, but shoppers prioritize price, value, and location over tech like “Just Walk Out.”
- “Physical grocery is just brutally operational,” said Professor Andy Tsay, calling the margins “thin and unforgiving.”
- Today’s show is brought to you by ESi-Q. ESi-Q measures employee satisfaction and provides actionable insight into what’s driving employee
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