Millions of New Cars Pile Up, Unsold for 5 Years, China’s Zombie Car Factories Keep Emerging
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- Опубликовано: 24 мар 2024
- In recent years, with the rise of new electric vehicle factories in China, a significant number of existing ones previously focused on producing gasoline cars have seen a dramatic decrease in their capacity utilization rates. Some of these factories have fallen idle or even been sealed off, earning the moniker "zombie factories." Analysts predict that China's automotive market could see hundreds of such "zombie" car factories over the next decade.
#chinaobserver
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The batteries sitting there discharged for years will be no good. 😮
That's ideal, means the stealership can slap you with another twenty grand fee in six months to put a fresh NOS battery in, and six months after that...
Lot rot!
some EVs have clauses, that prolonged discharged state voids warranty
those batteries will self-combust because they have not been used allowing dendritic growth of decayed chemical short circuits between electrodes in the cells. Any li-ion cell not used/charged for 6 months is a real fire risk.
😂😂😂😂STEALership@@Bobo-ox7fj
It's an example of what happens when governments dictate production, not the market. Exacerbated by economic destruction and poor policy by the government. Consumers don't want a car that costs more, is more work to driver distance, doesn't offer anything unique when people are making less money, and everything is more expensive globally.
Not to mention being a potential safety hazard (from fire or explosion) as well as ridiculously expensive to repair or replace...
Then we have a situation where they can dump these cars in developing nations (Europe recently, using their own ships! Moving coffins have arrived at our door steps, brace for May Day!
Isn't this the same as central bank "setting" interest rates (price fixing) and printing money (counterfeiting).
It's all market distortion that benefits a select few and transfers the loss to others.
Banks in the west are experts at this scam.
you mean the petrol ones that 60 times more likely to do that per capita ?@@donman9154
Top down economy, enjoy it.
My biggest concern is that foreign governments (especially the boneheads here in the UK) will allow the mass import of this junk and consumers will fall for it. Insurers here don't care if hundreds of people are driving around in mobile crematoriums. These cars constitute a danger to life.
Insurers care very much. They are overjoyed to raise insurance premiums several times over internal combustion vehicles.
My worry is that even if these cars have compelling warranty terms, who is going to honor them if the company goes bankrupt. Having an 8 year battery warranty is industry norm, but if the maker has gone under, customers will be left with a very expensive paperweight if something malfunctions.
Same here in Germany. Im working for a domestic car manufacturer. Last month on of our executives showed car ferrys unloading BYDs. Its not difficult to find videos of BYD EVs buring down, having catastophic failures and claiming lives. It was probably a poor try to justify lower wages for the annual collective bargaining. For me, it just raised fears in my mind being trapped in traffic with those timebomb EVs left and right catching fires or creating accidents on the Autobahn. I drive a cheap Lada Niva, its loud, its thirsty..but changeing the muffler and the backend of my exaust costed me 39€, instead of hundreds and the most complicated electric thing in it is the speedometer. A car build to be driven in the harsh lands of Russia and repaired in the far outreaches of Siberia is good enough for our roads, it will not ignite spontaneously it will brake if its maintained propperly and lacking Airbags in the fistplace makes em impossible to fail. Not bad for a car that costed 7k when it was 6 month old.
@@veikovasko5603 Well what you described is how solarpanel companies operate. Give massive promises and warranties, then when enough panels start to fail bankrupt the company and move all its assets and profits to another company that is now not tied to to old company, rinse and repeat.
Its not even about if something malfunctions but normal wear and tear items needing to replace. On old cas say lada mentioned below you can swap the engine from say older corolla and its god machine that runs into end of the earth, specially since most of the parts are so simple that you can make them your self or adapt parts from other vehicles, but on new car.. hell it could be next one from the production line and you cant get it to work cause each part is digitally tied to each other, witch you can swap with out manufacturers software. Also even if there is compelling warranty terms.. its Chinese company behind it anyways and fucking over westerners is national sport there.
@@BonannoCMI pay less for my EV that the aequivalent ICE would cost ^^
Automakers everywhere are producing overbuilt, overpriced, super-complex (but less reliable & repairable) vehicles that fewer people want or can afford. If an automaker would produce a line of cars with the complexity and feature set of 2010 vehicles, they might be astounded at their success.
Couldn’t agree more but I’d be more than happy with a 1995-2001 - no service lights! 🤔
All China does is create issues, this has been done with so many products. I remember the rentable bikes, just piled up on the intersections so much waste all the time.
Isn't Socialism wonderful?
symptom of planned economy
@@Jordan-RamsesAll the socialist European countries seem to agree.
@@Razielchan666 that is a lie. They are free market economies. Unless you mean Soviet Bloc or Nazi Germany. They were Socialism.
I remember seeing footage of where they get dumped. E-Bikes and Scooters piled high and covering acres of land open to the weather..
Now it is probably a desert of rust and scrap.
Ridiculous waste of cars. Poor management overall. Then again their quality are like death traps....
Ccp’s dream is to brag it’s fake achievement
disgusting amount of waste
And money...
Top down economy, enjoy.
Its the socilism
@@junicohen7918 bot moment
@@junicohen7918b0t
I don't care if it's chinese, japanese or American, if you buy a crappy car because some overpriced celebrity dressed in fancy clothes stars in an ad you deserve everything you get.
Come on, bud. How can you put it on the consumer? A consumer wants to believe the automakers who, obviously, lie about their products. I wish government(s) can have units to test each product and continue to test for safe and reliable products.
@@maninscrubdallas8694 Two words: caveat emptor. If you are so easily swayed because of the person in the ad then you are an idiot and you shouldn't be in charge of your own finances. The celebrity shilling for the companies are not the automakers. They are the ones taking money to lie to you and if you believe them because you saw them on TV then you are 100% at fault for your choices.
What a waste of resources
Where's greta ?
How dare you 😭
If she dare step into ccpland she’ll be arrested for causing social disorder.
Yeah, how dare they!😂😂😂 Thanks!
No, how dare they 😂😂😂
She's bathing in vainglory and rolling in bed full of money maybe? 😅
This is what central control gets you: Massive oversupply in some areas of the economy while creating acute shortages in other areas. What is also being described here in trade terms is predatory practices. Anti-competitive to the extreme and should never be allowed. The massive tariffs on Chinese made goods is wholly justified.
Put a 30% tariff on all of Chinese subsidized products and demand that they have a 3 years factory warranty on their EVs. Also, China should be liable for all accidents caused by faulty parts.
Expecting a warranty on an chinese EV. Daring... China doesn't do warrantees!
@@MasticinaAkictalol, they don't do much of anything. If you blame them for something, they'll just blame you back.
Agreed, add to that concerns regarding long term service / dealer network and the availability of parts.
These Chinese imports will seem a bargain to many but insurers can reliably predict problems ahead, and will base user rates accordingly.
Good luck. But I completely agree
Make it 100%! 🙂
As a mainlander using a vpn to avoid prosecution, please pray for us to be free from the CCP
May God you and the ordinary innocent Chinese people Stay strong.God will never leave you.Call and pray unto our Lord and personal Saviour Jesus Christ.
get off your a$$ and do something about it.
may Allah bless Jesus and inf$d$ls like u . allahmudillah @@edwarddelacruz5893
Get me a good looking Chinese girlfriend al let you come to Scotland 🏴 lol 😜
cry baby
Tofu Dreg Car Factories 🤣🤣🤣🤣🤣
Tofu Xi
Tofu factories refer to low quality products these plants turn out. For example, BYD cars have been subject to massive criticism on RUclips regarding the low build quality and cheap materials.
3 years , you can guarantee the battery's are no good. Tyres will be perished , brake fluid will need changing .
Tesla announced on Saturday that they will reduce production from 6.5 days to 5 days per week in their Shanghai gigafactory factory. They started trimming production since the beginning of March. This means Tesla will sell nearly 190K fewer cars this year compared to 2023 from their Shanghai gigafactory which is 20% deceleration in sales.
Calling it now. Ccp will impose a law where a person must own an electric car or suffer monthly fines.
imagine paying a mortgage for an unfinished apartment and lease on a car that no longer runs
Good call
huge supply of cars by no buyers !!! they should go back to the olden days where you order the car to be built. instead of expensive pre-builds with functions no one needs !!!
Repossessions are way up.... And the boom season hasn't started yet.... All the new workers , buying cars are tired of working.... Tired of all their money going in car payments. Eventually you realize you can stay home and be broke , you don't have to work your ass off to be broke....
i have personally thought for a long time and i am over 50yrs old that there is too many cars being made globally and all companies want increasing profits not sustainable production .
Today on a pile in China
tomorrow dumped on the world market
When the auto industry understands that electric vehicles are not wanted by the majority of consumers, they will begin to recover. Consumers have realized what a scam these types of vehicles are in terms of autonomy, charging time and battery life.
Rubbish. So why has fossil car sales gone through the floor?
@@damiendye6623 Surely because people do not decide what to buy and also thanks to the intervention of politicians wanting to impose a product that is worse than the previous one, this has caused the market to collapse. for intervening in the market. When politicians intervene in the markets, disaster is assured.
@@DWatch94 what about it all of them are taxed
@@DWatch94 nothing to do with that nobody what's a fossil car anymore, they are expensive to run requires expensive service and are just a scam. @alf637 knows all too well that the lies the fossil industry is pushing as he is part of there fud army.
@@damiendye6623 Because governments and politicians are intervening in the market, thereby artificially altering it. First consequence: Consumers do not trust the ideas of disgusting and incompetent politicians, who say one thing today and another tomorrow. Second consequence: More expensive cars and consumers who delay the purchase decision.
This happens in every country led by a tyrant.
Yes we have Greta tunberg in sweden...😂
@@stefanlageambecker6077 So Greta Tunberg is in charge in Sweden. New to me.
Just shows the the CCP needs to go.
Patriotism of Xi Jinpig:
daughter: lives in US brother: australian green card daughter in law: british green card sister: canadian citizen brother in law: canadian citizen second sister: australian green card second brother in law: australian green card
It's sloprosperity
Everybody wants to produce evs.
@@ishakshamsudin8585this is not about EVs, every car type is affected
@@EinfachFredhaftGaming Agreed.👌
I'm here from the socialist government to help you run your life. Afterall we know what's best for you!
What’s all these sea of cars on the parking lot?? Don’t tell me China not only have 20 million empty apartments but all unsold cars to match??
AHSO!!!Park all unsold cars at empty TOFU buildings and cities.Pay ppl to wash cars and generate new income source.PLUS IT FOOLS WORLD that CCP does well.
used to be only bicicles, now cars and appartments too
zombie cars for zombie households
Nailed it
Systems based on invented faulty ideologies always fails. 😅
0:01 no way those Land Cruisers will become dead stock
There's no Landcruisers in this video. They're just crappy copies, known as HT L4600.
@@aaronnoyb Now that is funny. It would make good entertainment to see a comparison, Whistlin Diesel style.
@@Fekillix It would be an interesting study of the economics of buying the real deal, versus buying three copies for the same cost. Dangerous job for WD, that's a lot of chinesium airbags to deploy, during his "testing" regime.
Chinese manufacturers fail to realize cars are a status symbol and brand reputation is key to markets around the globe, Buick is still quite popular in China due to its level of quality relative to the Chinese domestic automaker.
Nobody is going to be able to get parts, for those car brands, that went out of business!
Already happening in Mexico
Because the prices asked are overpriced.
And this happens to western brands which see a decline, because they outrageously increased prices like crazy.
When a bloody VW Golf , a generic hatchback with a bloody 1 liter engine is sold starting at 27.000 euro...
Holy crap. That is a 14.000 euro car, HALF their asking price.
If we look at a golf from like 2010, entry level. at that 14.000 euro. There is no technological or equipment difference justifiable for doubling the asking price.
Inflation is a lie. Is a system where they constantly increase prices for more profits in their pockets. And Everyone increase prices because everyone needs to transport stuff around and if the vehicles are more expensive then everything else is more expensive, thus the snowballing effect called inflation.
So, the major problem are the automotive manufacturers that create this economic loss through their greed.
China has zombie factories and the US has millions of zombies all over the major cities coast to coast. Perhaps they should cooperate and house all those American zombies. This will surely be a win-win situation. 😂
Do NOT allow Chinese cars to enter the EU market without high importtariffs
Or at all? lol, they tend to be quite explodey
Yet everything else from China is fine
Why I'd gladly buy one for 10.000 EUR instead paying 40.000 EUR for any other Western brand.
New vehicle sales are down because of the outrageous price wanted for new vehicles.
I’ve never seen a ‘boot’ on a car while that car is still on the dealership sales floor😂😂
Navigating social security can feel like traversing a complex maze, doesn't it? It's essential to have a guide.
Absolutely, especially with all the twists and turns in retirement planning.
@@LeahLewis-ny9iu I'm feeling a bit lost in this maze. Any recommendations for a reliable guide?
@@ScottLarrry Indeed! Wendy Joyce Woods is the guide you're looking for. Her expertise in financial planning can help navigate through the complexities.
@@ChloeCarter-kd7gz Wendy's guidance has been invaluable to me. She's like a beacon of light in the fog of financial uncertainty.
Wendy Joyce Woods, huh? Her name sounds familiar. She must be well-known in the industry.
This is absolute madness! To continue producing cars in numbers far above the levels that can be sold is ludicrous.
All rhe cars are registered as soon as they are made, This how the companies get the subsidies from the CCP. The subsidies are worth more than the cars. So they make a profit, even if they don't sell anything,
My third world country its now under a ton of marketing of Chinese vehicules, still Toyota is king followed closed by Honda and Mitsubishi, I dont see them making a signifcant profit here.
what do you mean china said they sold millions of ev..... lol
It used to be that they made more from servicing and spare parts over the life of a new vehicle. Now they have made throw away cars that have no resale value people don't want to spend money on them. They have shot themselves in the foot.
It's no surprise that when a government attacks a foreign manufacturing company within its borders, it can result in a loss of business to that company.
This causes pushback by that company and its home nation.
China has been doing that for a while now, and those companies are leaving China.
When they go, so do any jobs from their factories.
The Chinese people are becoming aware of this reality. So sad. 😢😢😢😢😢
Some people in the UK who are following MG's operations are realising that they aren't making a lot of money being that the remainder of the historic Longbridge car factory is falling into disrepair. The remaining parts of that factory are now a storage facility for mainly prototype MG testing for cars to be launched for the UK market and older concept vehicles when the MG/Rover group was sold to the Chinese buyers.
AT 4:51 MARK YOU SEE THE AUTO WORKER MAKE MINUTE ADJUSTMENT WITH A CHISEL AND SLEDGE HAMMER.🤣😂🤣
Imagine if all those sources being use to help others in needs instead of being wasted. Its not small in number there, its a massive scale of wasted sources.
Yo! That first bunch of cars yoy showed was the 200 series toyota landcruiser. Highly sought after in Australia going for 80k-120k+
What the hell are they doing sitting in china! 😂😂😂
stealerships aren't interested in selling them for what they're worth, enter artificial scarcity!
It was a row of JEEP's
@@bentullett6068 no it was not, go and have another look. The jeeps were second.
There's not a single Landcruiser in this video. They're just crappy copies, known as HT L4600.
The jeeps could be real or copies, they're crappy either way.
Its disaster for a battery stay unused for 2+ years !!
Other companies like using a just in time model, where you go lean on inventory and build enough to meet demand.
In China, you mass produce everything even if there is no market, because that increases the gdp, and that looks good on paper, but in reality, many of the products are just excess inventory and utterly worthless.
Yeah, average price per vehicle is lower if you just keep producing it, if you cant sell 2 out of every 10 cars, you are literally eliminating any profit you make and actually making losses, since the profit per vehicle industry average is around 10%.
Thats what happens when politicians make cars..
have they not heard of recycle or do they just pollute everything everywhere
who knows?
Maybe these massive amounts of old unsold cars can be used as shelters for people without homes?
Seeing as how the new buildings are Tofu Dreg quality
Please don't blur off the Chinese subtitles, some of us are sharing these videos to Chinese speaking viewers.
I wouldn't mind having one of those Jeeps for dirt cheap 😂
Something not making sense of those Jeep at the 12th second of this video, those are 2024 model of Jeep Wrangler 4xe, they have the distinct new grills and alloy wheels. These are not 3 years old cars. Fake news?
@@DZ-cm5xw yeah I noticed that too, it's possible those jeeps might not even be in China.
Ugh I'd love to own even one of those. Cars are so expensive in the US.
Same here in Australia , it's time China was shut out of both our markets as there is nothing but tears in the Present oversupply of NASTY CHEAP EV's and Combustion powered Vehicles that undercut the US car Production and then FALL APART with little if any comeback on China !! Then you have Chinese vehicles with Lidar sending ALL gathered information back to China ! ! Dam scary if you ask me, stick to made in the USA or like Australia you will end up with NO LOCAL production !
That's Chinas plan ! 🦅🇺🇸🦘🇦🇺
Lol one clip says it’s been sitting there for 5 years and another clip on the same site says these cars are the latest models 😂
Years of outdoor storage, these cars become home for rats, mice and rodents as well as insects.
Lucky animals! Good home for them, rent free. 😊
once again it's like that everywhere but minus the Discount \ clearance sale...
Im Canadian. We can't afford a new vehicle. Heck most are barely getting by..
I was just wondering if all those cars have sets of keys sitting somewhere.
Is there a master key or code if they use an electronic system?
Also, would any if thise cars sitting so kong be sold as the year manufactured or the year the eventually sell them.
It seems parts that use rubber would deteriorate and the plastic interiors would crack.
Overcapacity is actually an inevitable result of a market economy, while a planned economy can actually lead to supply shortages. You can refer to the Soviet Union and China during the planned economy period, because planned production basically does not generate any waste. At present, the Chinese automotive market is facing severe market competition, which is the reason for the large number of small car companies going bankrupt. If your products and prices are not competitive, they will inevitably be eliminated.
Prices in new cars haven’t lowered much anyway……. We can thank our government for that 🙄 AND Used cars are holding their price too!!!!
Can you imagine all the great jobs ( which reduce homelessness and provide income to citizens as well as government/city services) the US gave away??? 😮🤨
Not all people are homeless because of jobs, it's a much deeper and complex problem people fail to understand.
its not gov. its corps that went for min/max profits
Here we are driving a 20 yeard old mazda thats literally falling apart....damn, we so gladly would drive one...
Why do we need so many new cars?
I've had the same car and truck for 30 years.
Interesting, I didn't hear any mention of Tesla.
China infringing on customers rights. Really you're kidding me. Can't be true 😆🤣😂
I want those land cruisers
BYD EVs failing? Seems like. Inefficient manufacturing in terms of aligning to demand and supply.
Have you not driven south past Bristol on the M5? Have a look at all the brand new shiny cars starting to rot in the fields? Yes, that is where your brand new car is stored whilst waiting to be bought and distributed to the dealer.
Since covid (that Chinese invented) new car prices nearly doubled so a downwards correction is necessary. Most pay did not double and the cost of life is higher then ever before.
… when the sales forecast manager was fired because of his recommendations.
😂
Tucker will buy one of these great Chinese cars that are assembled, then disassembled, then shipped to Russia and reassembled in a Russian car factory to help Russian Pride and make it seem like Russia still builds cars.
Didn't know a single one of the above mentioned Chinese brands.
Not once did I hear anything about the VERY poor quality parts, manufacturing or service the Chinese companies have, not once.
The strongest will survive and consolidate, this is a good thing for the longer term as over capacity and over production is wasteful.
There is obviously a flow on effect for those cars whose manufacturers have gone out of business. Spare parts and repair. It's going to be an ongoing problem for all other manufacturers, because savvy car buyers are not going to buy cars which could loose repair and parts support much sooner than the life of the car. That being the case I'd be buying established brands with a long track record.
There might be a opportunity leveraging 3D and design replication skills, to create generic parts manufacturing plants. Where parts for non-existence brands might be serviced by getting parts produced ad-hoc according to need. This could branch into a general parts service which supplies companies of all kinds rather than making custom machines for parts specific to their particular brand of vehicle.
The disgusting thing is they would rather allow the new unsold cars go to waste rather then sell it at half the price to people...
Hows the condition of the battery if its sitting for years
Interesting. Not sure it's all reliable info, but interesting.
While building a factory and not having it used is indeed a waste of resources, having a built factory waiting to be put to use by any new company is nice.
Mainly Western car brands like Jeep… and most are ICE Cars.
The Chinese are producing their own and better cars for the Domestic market. Even Tesla sales have dipped in China.
Chinese cities are not built with private cars in mind. There are not enough parking spaces anywhere. If China can't find export market for their cars, their dream of moving up the value chain in the automotive industry is doomed.
Most of them are high risk of battery fires. Poor quality designs with safety a low priority. Newer EV designs have improved.
The EV industry should've never left the drawing board....
This is the normal clearance of the market. many brands will disappear, absolutely normal, look to the history of automobiles in the US & Europe. Most of them will run into problems when they have to built up the supply chain for spare parts. Even Tesla is struggling with the services & spare parts.
Tofu Dregs Automobiles with added fire risk!
If BYD and other car companies cutting prices why car are still so expensive when they coming Europe for selling it's insane how expensive they are.
What are they using for batteries?
Maybe the operations manager is in love with the sales manager?
🤧
In Ireland byd and Kia and Hyundai to expensive for the normal working classes no wonder sales are down
They could give em away and I will still refuse…
A sua estatística está tudo errado . China produz 30 milhões de carro .por ano . as marcas japas tem participação de 5% e as koreanas 1% .
Só que agora as vendas são 50% carro combustão e 50% carro EV
Isso é significa que este ano 15 milhões de carro combustível será vendido e japa tem só 2 % neste participação então só 300 mil carros japas. E coreano só tem 0,3% só 45 mil carros coreanos .porque ambos não fabricam carros EV e estão perdendo mais de 70% de participação em relação ao ano passado.
Great info
Thx
learn inventory management from toyota or even apple
You no say? Celebrities are NOT using compact cars? And a van is NOT as fast as a race car??? It's commercials, of course that's how this works.
Good example of now a second hand car available
Increase inventory?
Poor strategy.
😮💨
Erroneous reporting !
And yet cars are still more expensive than they used to be 4-5 years ago. Why on earth should I rush to buy a car that is more expensive and technologically no more advanced?
95% of chinese car brands are trash tier with only 5% actually viable. The rest have already died off or are dying so now the rush to the bottom (quality) begins. BYD is the only viable international EV brand that makes decent vehicles, all the others will die off.
Electric cars with petrol or diesel caps?
Build quality is inevitably going to drop (if that was possible) through this lack of profit.
Use the down time to improve the designs.
all over the US too...