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Home / Business / Electric cars: China's drive to dominate the industry – 60 minutes

Electric cars: China's drive to dominate the industry – 60 minutes



It may not be anything more emblematic of the American century than the car. Mounting lines rolled out millions of Ford's, Chryslers, Chevys and Buicks and made Motor City-Detroit, the Michigan capital of the global automotive industry. But in the course of dominating the automotive industry in the 21st century, China is fighting for the pole position. Chinese car manufacturers are building tomorrow's smart cars. And the energy consumption is electric.

Today, American automakers are caught between a tariff-fueled trade war and threats to the cuts of electric car subsidies by the Trump administration. At the same time, Beijing is trying to win the race by making sure that the future electric vehicle is made in China.

Michael Dunne: This year China will build a million electric vehicles. It's fine scale. It is half the electric vehicles in the world.

Michael Dunne grew up in Detroit, Motor Motor City, studying as a fairytale student in the late 1

980s, he went to Chongqing in West China.

Michael Dunne: Everyone was poor, wearing grays and blues, cycled on bikes. There were no cars.

Holly Williams: No Cars?

Michael Dunne: No cars at all.

<img src = "https://cbsnews3.cbsistatic.com/hub/i/r/2019/02/25/997fbc33-aaa2-4007-a4b5-4acbd0b788c4/thumbnail/620×349/73d7140efc85c11e3b98bed91a177947/nio-car- 4.jpg # "alt =" nio-car-4.jpg "height =" 349 "width =" 620 "class =" lazyload "data-srcset =" https://cbsnews3.cbsistatic.com/hub/i/ r / 2019/02 /25/997fbc33-aaa2-4007-a4b5-4acbd0b788c4/thumbnail/620×349/73d7140efc85c11e3b98bed91a177947/nio-car-4.jpg 1x, https://cbsnews3.cbsistatic.com/hub/i/r/2019 / 02/25 / 997fbc33-aaa2-4007-a4b5-4acbd0b788c4 / thumbnail / 1240×698 / 939b022253d83079bf2f7fefba191c59 / nio-car-4.jpg 2x "srcset =" data: image / svg + xml,% 3Csvg% 20xmlns% 3D & # 39; http% 3A% 2F% 2Fwww Dunne has seen China evolve from an isolated socialist state to a controlled capitalist power plant, and from a nation with riders to drivers, working as an automotive consultant in Asia for 30 years, including a stint as top executive at General Motors, and now Dunne is witnessing the Chinese government's lettering Equally electrified its growing auto sector. 19659002] Holly Williams: What does the Chinese Government do to encourage people to buy e lectric vehicles?
Michael Dunne: Many.
Holly Williams: It is completely created by the government?
Michael Dunne: Completely created by the government. So you get up to $ 10,000 in discounts when buying an electric car in multiple cities.

Holly Williams: And what more does the government do?

Michael Dunne: In Shanghai, for example – typically, you have to pay $ 12,000-13,000 to buy a license to purchase a car. That – they refrain from it.

Holly Williams: They're free if you buy an electric vehicle.

Michael Dunne: Yes.

The result: An explosion of electric car manufacturers – one hundred or so eager to feed in the government's trough. You can buy a big wall or you can "build your dreams" – a car manufacturer where American billionaire Warren Buffett was an early investor.

The last entrant to the crowded Chinese auto market is Nine.

 will-li-w-holly-6.jpg
William Li speaks to correspondent Holly Williams

Nine founder is William Li. A 44-year-old billionaire entrepreneur who we met last year in Beijing.

Nio is China's only all-electric luxury car brand.

Holly Williams: It looks like a Tesla.

And the similarity of a Tesla is no coincidence. Nine is ES8 competing with the American team Tesla for wealthy, status-conscious, Chinese. Their conspicuous consumption has made China one of the largest luxury goods markets in the world, with no import costs, at $ 60,000, Nio is about half the price of a Tesla.

Holly Williams: I heard you were the one to call this to Tesla Killer?

William Li in Chinese: Ok, ok.

Holly Williams: Maybe it was you.

William Li: Maybe. Maybe.

Holly Williams: It doesn't look like a killer.

Holly Williams: Are we going to take it for a ride?

William Li: Yes.

Holly Williams: What Is The Acceleration As On This?

Li claims that his car goes from zero to 60 in 4.4 seconds.

Williams and Li: 650 horsepower

And about 220 miles at full charge.

In addition, the car has a built-in personal assistant called "Nomi."

Holly Williams: Can we try Nomi?

William Li: Yes certainly

Who follows voice commands as long as you speak Chinese.

Holly Williams in Chinese: Hi Nomi.

William Li: Wow. Cool.

Holly Williams: She understands me.

William Li: Yeah, sure.

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Nomi is an avatar of artificial intelligence. She will entertain you with a music playlist, adjust the temperature or snap a confidence on command. This is Chinese innovation – a big leap forward from China's Communist past.

Holly Williams: What would Chairman Mao have made of a capitalist like you (LAUGHTER)?

Li told us that Chairman Mao would have said, "You do a good job." [19659002] Holly Williams: Really? He was a communist. He hated capitalists like you!

"We are trying to create a better world," Li said.

In Chinese, the slogan of Lis's car company is "blue sky coming". There is a good reason for one of the reasons why the Chinese government is pushing electric vehicles, as a way to reduce the country's suffocating air pollution.

Holly Williams: You've been called Elon Musk in China. Is it fair?

William Li: I am (LAUGHTER) younger than he.

Holly Williams: I've been talking to quite a few Chinese people since I came here. And they say they really like Teslas.

William Li: "Yes."

Holly Williams: How are you competing with it?

Li said it is like the clothes fashion models have on the catwalk.

William Li: "It's not the same."

"The clothes can be beautiful," he explained, "but you can't use them every day."

Holly Williams: So Tesla is the supermodel and you're the girl next door?

William Li: Yes.

In China, an electric car style shows

Auto analyst Michael Dunne's first challenge for Nio is to overcome China's reputation for building low-quality cheap cars.

Holly Williams: Are they trying to knock Tesla out of China and – and maybe Tesla globally?

Michael Dunne: There's plenty of market here to allow Tesla to play and Nio to play. What Nio needs to do is establish credibility with consumers and say, "We are legitimate. We are – a very good car."

In September, Nio became the first Chinese all-electric car company to debut on the New York Stock Exchange. The splashy original public offer increased one billion dollars.

Holly Williams: This is the racing car?

A Nine team has competed on the Formula E circuit for two seasons, including this race in Brooklyn, New York. Evidence that electric cars encounter gas engines in power and speed.

But Nios is really designed for tech-savvy Chinese owners who connect to their cars with a mobile app. Touch a screen for repairs or maintenance. Press to order a mobile charging station for a fast power boost.

Press again to visit a switching station, where a depleted battery can be replaced in three minutes by robots.

It is the kind of futuristic scene that William Li could only dream of as a child.

Holly Williams: And did anyone in your village have a car?

William Li: No.

Ironically, the founder of this high-tech electric car company grew up in a farm with no electricity. 19659002] Holly Williams: So you learned about the business and claim cows with your grandfather.

William Li: Yes– yes– yes.

Holly Williams: And what did you learn?

Li explained that when doing business, "honesty is very important."

<img src = "https://cbsnews2.cbsistatic.com/hub/i/r/2019/02/25/4ff17a61-8773-4515-9b61-f1ee079c174f/thumbnail/620×349/9607441943030742cf9ccce581327af0/nio-assembly- line-18.jpg # "alt =" nio-assembly-line-18.jpg "height =" 349 "width =" 620 "class =" lazyload "data-srcset =" https: // cbsnews2.cbsistatic.com/ hub / i / r / 2019/02/25 / 4ff17a61-8773-4515-9b61-f1ee079c174f / thumbnail / 620×349 / 9607441943030742cf9ccce581327af0 / nio-assembly-line-18.jpg 1x, https: // cbsnews1 .cbsistatic.com / hub / i / r / 2019/02/25 / 4ff17a61-8773-4515-9b61-f1ee079c174f / thumbnail / 1240×698 / 0af2e4ed3bfcfe88d1ceaa73eca30e02 / nio-assembly-line-18.jpg 2x "srcset =" data: image / svg + xml,% 3Csvg% 20xmlns% 3D & # 39; http% 3A% 2F% 2Fwww.w3.org% 2F2000% 2Fsvg & # 39;% 20viewBox Li has founded or supported about 40 start-ups including an online auto marketplace and a bicycle company. is $ 1.2 billion and Li has picked $ 150 million of his own money for Nine.

Holly Williams: The Americans have been quite slow to adopt electric cars.

William Li: Uh-huh (AFFIRM).

Holly Williams: Is it different here in China?

fast, "Li told us because the Chinese government is pushing electric cars.

In Shanghai, China has built the largest EV database in the world.

Holly Williams: This is a map of all the electric cars in Shanghai [19659002] Ding Xiaohua: Yes

Ding Xiaohua is the vice president of the Shanghai Electric Vehicle Data Center, which gathers millions of pieces of information every day on nearly 200,000 electric cars on the city gate.

Holly Williams: So let's find one Tesla.

Ding Xiaohua: So these are just Tesla marks.

Holly Williams: These are all Teslas?

Ding Xiaohua: Yes. All Teslas.

Inside all electric vehicles in the city is a black box, which automatically transfers data to the center every 30 seconds.

Ding Xiaohua: For example, speed, mileage, battery temperature.

Holly Williams: And it helps the state's plan for the future?

Ding Xiaohua: Yes, public charging stations, how many public charging places? And where it's the best place for public charger.

There is nothing like this in the United States or elsewhere. China paves the way for electric cars from the 21st century.

Most of the country's hundred or so startup of EV will be killed by the competition. But William Li believes that Nio will survive and point out that his company has met its modest goal of delivering 10,000 cars last year.

Holly Williams: Why are the numbers so small at the moment?

"There are always problems and delays when a company deals with the production of something new, Li told us. And Nios cars, he added, are all made to order.

We visited Nio's production line where they ordered the cars is mounted in a shiny, automated high-tech factory dominated by a swirling robot corps.

And with China's massive production machine behind it, Nio can be able to scale up faster than its foreign competitors.

At the company's research and development post in San Jose, California, Padma Warrior-Nios CEO in the United States predicted until December that today's cars will be on US roads –

Holly Williams: What does it mean for US consumers and US drivers you hope?

Padma Warrior: I hope consumers will look at it as the future.

Holly Williams: A Chinese future?

Padma Warrior: China-driven future.

Nine is one of nine Chinese el. Eclectic Vehicle or EV companies to set up shop on the West Coast where they can lure the world's best engineers, programmers and software developers. Nine have employed more than 600 of them.

Padma Warrior: We have people here who have worked at, at Google, at Apple, at Cisco, at Tesla, your name.

Holly Williams: Imagine that some people might see it as a transfer of American technology to a Chinese company.

Padma Warrior: I don't see it like that. I think I see it more, where is the largest market for electrical and electronic components, right? And where is the biggest problem with pollution? It is clear that it is China. So I look at taking the best out of the talent pool that is available and changing the world for the better.

This year, the Chinese government will demand that all global automakers in the country make ten percent of vehicles electric. American automakers are already investing billions in electric vehicle technology. But unlike Chinese companies, they don't have the government trying to fix the race.

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<p>  Automotive consultant Michael Dunne warns China is determined to bend the automotive industry to its advantage. </p>
<p>  Michael Dunne: The market size alone makes China an irresistible place to be for a global automaker. If you are not in China, you will not play. So China says, "Hmm, how bad do you need our market? Okay. Very g – you're welcome to sell as many cars as you like, provided you also comply with our new electric vehicle regulations." </p>
<p>  Holly Williams: Has America already given leadership in this industry? 19659002] Michael Dunne: No, not too late. It's so early. China has made electric vehicles three years, four years. </p>
<p>  Holly Williams: When is it late? </p>
<p>  Michael Dunne: If we wait until 2025, China will make 5 million a year, and if we still make half a million, oh, now all technology and design techniques are concentrated in China. How do you get it up? </p>
<p>  <em> Produced by Howard L. Rosenberg and Julie L. Holstein </em></p>
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