Welcome back to the latest episode of The Future of Automotive on CBT News, where we put recent automotive and mobility news into the context of the broader themes impacting the industry.
I’m Steve Greenfield from Automotive Ventures, and I’m glad that you could join us.
News this week that BYD is eyeing acquisitions of struggling European luxury brands including Maserati while simultaneously pursuing talks with Stellantis and other legacy automakers to acquire idle or spare manufacturing capacity — a two-pronged strategy to deepen its European roots and bypass EU tariffs.
Brands such as Stellantis subsidiary Maserati are “very interesting,” BYD Executive Vice President Stella Li told Bloomberg May 13. It has yet to take any action, she added. Li did not specify which other brands BYD is considering beyond Maserati.
Maserati is “not for sale,” Chief Operating Officer Santo Ficili said in a news conference in Modena, Italy, on May 28. But, the automaker is assessing several tech options, including cooperating with Chinese partners, Ficili said, according to Reuters.
Europe is a favorite destination of Chinese electric vehicle exports because of the region’s strict emissions regulations, extensive charging infrastructure and high consumer demand.
It’s interesting to think through if BYD ends up acquiring a legacy automaker like Maserati, and what the implications might be on the U.S. market.
This would be not dissimilar from Geely’s acquisition of Volvo Cars from Ford back in 2010. Which has permitted it to bring into the U.S. Volvo and Polestar vehicles that were manufactured in China.
While the U.S. still has 100% tariffs, which are effectively keeping the Chinese automakers out of the U.S., we have heard that Ford has has conversations with multiple Chinese OEMs about possible joint ventures.
It’s an interesting thought experiment if BYD were to acquire a small OEM like Maserati. There are 84 authorized Maserati dealerships in the United States. This would give them instant distribution to bring in BYD vehicles, although they would need to brand them as Maserati.
If the tariffs hold, will Chinese automakers find other creative ways to access entry into the U.S. market, which may include (but not be limited to) acquiring struggling brands like Maserati that would give them instant distribution into the U.S. through established network of franchised dealers?
What other legacy automakers are struggling and might be acquisition targets for Chinese OEMs?
Only time will tell, but this is definitely something to keep an eye on.
So, with that, let’s transition to Our Companies to Watch.
Every week we highlight interesting companies in the automotive technology space to keep an eye on. If you read my weekly Intel Report, we showcase a company to watch, and take the opportunity here on this segment each week to share that company with you.
Today, our new company to watch is The Sweet Spot.
Lease your next bike with The Sweet Spot.
Think car leasing, but for bikes and eBikes.
Get the bike you’ve been dreaming of with low monthly payments.
Ride secure with built-in theft and damage protection.
Ride confident knowing you can upgrade, buy, or simply return it at the end.
If you’d like to learn more about The Sweet Spot, you can check them out at: www.TheSweetSpot.com
So that’s it for this week’s Future of Automotive segment.
If you’re an AutoTech entrepreneur working on a solution that helps car dealerships, we want to hear from you. We are actively investing out of our new Mobility Fund.
Don’t forget to check out my two books, The Future of Automotive Retail and The Future of Mobility, both available on Amazon.com.
Thanks (as always) for your ongoing support and for tuning into CBT News for this week’s Future of Automotive segment. We’ll see you next week!
