industry

A peek under the hood of the global automotive industry.

Merging Paths: GAC–FAW–Toyota Deal Heralds New Era of Chinese Auto Consolidation
China’s automotive industry has formally entered a defining period of realignment. On September 28, state-owned Guangzhou Automobile Group (GAC) announced it will acquire a 50% equity stake in FAW Toyota, the longstanding joint venture between Toyota Motor and China FAW Group, from a FAW subsidiary, paying with newly issued A-shares priced at CNY 5.75 (US$0.86) each. The transaction, disclosed in a filing with the Shanghai Stock Exchange, remains subject to final audits and valuation, but its implications are already clear: decades of established partnership structures are giving way to consolidation, scale-sharing, and a fundamental rebalancing of influence between global automakers and their Chinese allies.
By Mark Lim 12 days ago in Wheel
Squeezed from All Sides: China’s Auto Industry Faces Profit Crunch Amid Cost Pressures and Price Wars
China’s automotive sector is navigating one of the most challenging periods in its modern history. Official data for the first eight months of 2026 shows industry profits tumbling 16% year-on-year to 253.4 billion yuan (US$37.7 billion), pushing the average sales profit margin down to just 3.6%, a figure that has remained below 4% throughout the year and stands in stark contrast to the 7.8% recorded as recently as 2017. While August delivered a modest uptick, analysts warn it signals seasonal improvement rather than sustained recovery, and the underlying pressures of rising input costs, relentless price competition, tapering government incentives, and shifting consumer sentiment show little sign of easing.
By Mark Lim 12 days ago in Wheel
Defining the Gates: Ford’s Farley and the Global Debate Over Chinese Auto Access
Ford Motor Company CEO Jim Farley has sounded a clear warning about the scale and speed of China’s automotive expansion, urging the United States to exercise deliberate caution in deciding how and under what conditions Chinese automakers enter the domestic market. Speaking at an Automotive News conference on Tuesday, Farley pointed to Europe as a cautionary example, stating plainly that for European nations, “it’s too late” to prevent rapid inroads by Chinese brands. His remarks lay bare a defining tension facing the global industry: how to engage with a manufacturing powerhouse that is simultaneously a vital partner in supply chains, a formidable competitor in export markets, and a source of geopolitical unease.
By Mark Lim 12 days ago in Wheel
JAC Motors Rallied 9% on a Two-Page Report. The Real Test Is Still Coming.
On October 13, JAC Motors opened lower. After 9:45 a.m., the stock shot up in a straight line, touching an intraday high of RMB 24.20, up 8.84%. It closed with gains narrowed to 4.72% at RMB 23.09. Full-day turnover was RMB 6.44 billion, turnover rate 12.47%, amplitude 12.24%. Main funds recorded a net outflow of RMB 118 million. Large orders recorded a net outflow of RMB 123 million. Small orders recorded a net inflow of RMB 72.44 million. The trigger was Maextro’s “Statement on Brake Pedal Testing for Maextro V800,” released that day.
By Jin12 days ago in Wheel
Your New EV Has No Spare Tire. Here’s How to Decide Before Your Road Trip
Last year in Lenghu, Qinghai, I saw a new energy vehicle parked on the roadside. Its right rear tire was flat. A gash ran down the sidewall, as if someone had cut it with a knife. The owner stood in the wind making phone calls. The signal kept cutting out. In his trunk was a bottle of tire sealant. It was empty. White goo was smeared on the wheel. He said he had called roadside assistance. They told him the nearest vehicle was three hundred kilometers away. It would take at least four hours.
By Jin14 days ago in Wheel
China just put a hard brake on quick-ripened cars
On October 10, 2026, four Chinese agencies released a draft policy that changes how cars get approved in the world’s largest auto market. The Ministry of Industry and Information Technology, the Ministry of Public Security, the Ministry of Ecology and Environment, and the State Administration for Market Regulation jointly issued the document. Its formal title: “Notice on Further Strengthening the Management of Automotive Product Innovation Design and R&D Testing and Verification (Draft for Comment).” It sets hard floors on testing time and mileage. Faster tools, shorter decision chains, and aggressive launch schedules cannot compress them.
By Jin15 days ago in Wheel
The Brake Pedal That Broke at 1,612 Newtons
I. 1,612 Newtons On October 8, 2026, Dongchedi released a test video. Three Zunjie V800s performed emergency braking from 100 km/h to 0 on a closed course. The first car's pedal bracket broke on the third braking event. The second broke on the fourth. A third car, bought to verify the problem, broke on its second full-force brake application. The pedal force sensor recorded 1,612 N at the moment of fracture in the third car.
By Jin15 days ago in Wheel
I Drove a Range-Extender for Two Years. I Don’t Miss Gas Cars.
Credentials first. I’m not an EV shill, and I’m not a gas-car hater. My last car was a 2009 Lavida. When its LCD dash still lit, the odometer passed 240,000 km. When I traded it in, it showed 270,000+. It took me from new driver to old driver. It also took me through gas prices going from 6 to 8 yuan, then from 8 to “fill the tank and feel your heart bleed.” Early on it did 7 to 7.5 L/100 km. Later it did 8 to 9. Its used value was maybe a few thousand yuan.
By Jin16 days ago in Wheel
Porsche Is Cutting 9,000 Jobs and Betting on Gas Again
Porsche’s Spartan Turn: Fewer Cars, Higher Prices, More Gas On October 7, 2026, Porsche stood in Weissach and announced a mid-term plan called “Sportwagenschmiede ’35.” The German phrase means “sports car forge.” The name tells you where the company wants to go: back to the thing it was before.
By Jin16 days ago in Wheel
Gasoline Just Lost the Majority. The Repair Shop Already Knew.
In the first half of 2026, for every 100 new cars sold worldwide, 49 were pure gasoline vehicles. In 2021, that number was 73. Mobility Global reports that pure gasoline vehicle sales fell 10% year-on-year to 20.25 million units. The overall auto market contracted by about 5%. Gasoline cars declined at twice the rate of the broader market.
By Jin18 days ago in Wheel
The 4 A.M. Charge
The service area lights were orange and tired. I parked behind a white SUV with its hazard lights blinking. A man in a blue jacket stood next to a silver sedan, holding a charging cable like a leash. His car showed 1 percent. Two teenagers pushed from behind. The car rolled forward one slow meter at a time. The charging station was fifty meters away. The queue of EVs stretched past the gas station and around the restroom building. A woman in a red coat leaned against her car and ate sunflower seeds. She had been waiting three hours. She said it without anger, the way you say the weather.
By Jin21 days ago in Wheel
The 1.7x Repair Bill: Why Electric Cars Are Cheap to Drive and Expensive to Crash
A driver backs into a pillar. The side mirror cracks. In a gasoline car, a body shop orders a replacement shell, maybe a motor, and returns the car in a day or two. In an electric car, the mirror is a module. It handles power adjustment, folding, heating, and blind-spot monitoring. The shop says the whole unit must be replaced. The part has to be shipped from another city. The bill: 5,700 yuan. The wait: nearly a week.
By Jin23 days ago in Wheel