The car business is in flux. Volkswagen Group is talking about possibly shutting down four factories in Germany. In China, new car sales are not as wildly robust as they were a few short years ago, having experienced only a 4.8 percent growth rate recently compared to many years of double-digit increases. Worldwide, the only countries where sales are increasing are those in which owning a private automobile was little more than a dream until recently. Some two decades ago, US and European manufactures flocked to China, which was emerging from the dark times of the Cultural Revolution to become one of the fastest growing economies in history. But China did something unique. Instead of allowing foreign companies to build factories there, it mandated that they enter into joint ventures with domestic corporations. That way, a transfer of knowledge was created, and — boy, howdy! — did the Chinese leverage that aspect for all it was worth. The upshot is that, today, Chinese manufacturers can bring new models packed with advanced electronic features to market faster than anyone else anywhere in the world. They also can build cars cheaper than anyone else, which allows them to undercut their competitors with ease. In an article this week about the struggles Volkswagen Group is having, one of our regular readers suggested “the three German car manufacturers need to be consolidated to survive. A path for VW could be to ‘merge’ with Xpeng and let their CEO run things, consolidate brands and models, relocate manufacturing, focus on a pure EV future, etc.” As it turns out, Cadillac may have taken a step down that path already. The Cadillac OPTIQ And The Xiao Yao Platform According to several news sources, the Cadillac OPTIQ — the smallest of its battery electric SUVs — may ride on the Xiao Yao platform developed at the SAIC-GM Pan Asia Technical Automotive Center in Shanghai. It won’t be coming to the US, of course, because Americans are petrified of buying or riding in a Chinese automobile for fear that Chairman Xi is recording their every move, and the US government is doing everything in its power to protect them from that threat. But while Americans cower in fear, Cadillac has quietly begun planning to sell battery electric vehicles in other markets — particularly Europe. The irony of GM turning back to Europe after fleeing the Continent in a panic a decade ago is too delicious to ignore. InsideEVs reports that several Buick models such as the Electra L7 and the E7 already use the 900-volt Xiao Yao platform. GM’s Ultium platform is archaic in comparison and has been a flop in China, with sales of the Buick Electra E5 and E4 sluggish at best. Chinese customers strongly prefer cars from NIO, BYD, and XPENG, leading GM to decide Ultium was a non-starter and the only solution was to develop a platform in China, for China, in order to be competitive. It turns out, Ultium is the penultimate platform — at best. On July 8, a GM spokesperson in the US told InsideEVs, “The Xiao Yao architecture is a China-tailored platform developed by PATAC that combines GM’s global expertise with strong local capabilities. It integrates propulsion, chassis, intelligent driving and smart-cabin technologies. The reporting about the Optiq is speculative.” Last year, SAIC-GM announced that Xiao Yao was a truly software-defined vehicle platform with plenty of flexibility baked in. It supports EVs, plug-in hybrids, and extended-range vehicles and can be adapted for nearly all body types, including MPVs, sedans, and SUVs. It also supports front-, rear-, and all-wheel drive configurations. There’s also heavy focus on advanced cockpits, efficiency, and high speed charging. “In other words, it’s possible that the next-generation Optiq sold overseas might feature blistering charging speeds, cutting edge batteries, and advanced cockpits that would make its US counterpart look ancient,” InsideEVs said. Chassis Flexibility Sharp-eyed readers will note that the latest offerings from BMW also are able to use gasoline and diesel engines, mild hybrid power trains, plug-in hybrids, extended-range EVs, battery electric cars, and even hydrogen fuel cells at some point in the future. One wonders if the wizards in Munich are dusting off old designs for cars powered by coal gas. The upshot is that, while CleanTechnica readers wholeheartedly support battery electrics, manufacturers are reluctant to commit solely to that technology, preferring the flexibility to make vehicles people actually want to buy. The key to sales success at every level is selling stuff and plenty of it. Incidentals like taking prudent steps to keep the planet from turning into a burnt cinder are secondary, if they are given any consideration at all. Could Cadillac offer the updated OPTIQ in Canada? Yes, it certainly could, now that Mark Carney’s government has agreed to allow a small number of cars manufactured in China to be sold there. Canadians are made of sterner stuff than Americans, apparently. How about Mexico? Yup, as well. The OPTIQ is actually manufactured in Mexico today. Could Australia get them, too? That is certainly possible. The photo accompanying this story is a GM press photo of an Aussie-spec OPTIQ. China Rules Global Manufacturing GM isn’t the only Western automaker leaning on Chinese tech for EVs sold elsewhere. Renault also developed the latest Twingo E-Tech at its R&D center in Shanghai, while Audi and Hyundai are planning to make China their next big R&D hubs. Volkswagen has funneled nearly $6 billion to Rivian to gain access to that company’s advanced EV platform and is working with Chinese partner XPENG to develop new models for China that will be more competitive. The US can hold its breath until it turns blue, but the Chinese manufacturing revolution — which began when Richard Nixon went to Beijing in an attempt to open Chinese markets to US companies — is dominating manufacturing almost everywhere on Earth. GM, with its “not invented here” corporate history, must find it especially galling that it must now rely on Chinese talent to manufacture competitive automobiles. It may remind some readers of the lyrics of a well known song by Sting: “I will turn your face to alabaster when you find your servant is your master.” Get used to it. While the US builds tariff walls, China builds compelling electric cars that people actually want and can afford. Shocking, isn’t it?
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