Automotive Ventures urges legacy automakers to partner with Chinese EV makers
XLY•Automotive Ventures urged legacy automakers to partner with Chinese EV makers to cut costs and speed development, warning they face a “precarious future” without a major reset. It cited Chinese brands’ growing sales shares in Europe, the UK and Australia, and called tariffs a short-term Band-Aid.
1. Partnerships urged
Automotive Ventures management said legacy automakers need to cut vehicle development time and costs, and urged them to “co-opt, neutralize, compete” through partnerships or joint ventures with Chinese EV makers. It described China’s auto market as “involution,” citing aggressive price competition that compresses margins and accelerates innovation cycles, and called tariffs a short-term Band-Aid. The brief cited Chinese brands at roughly 12% of European sales and 16% in the UK; in Australia, their share rose from about 3% to around 30% in three years. It also said Toyota dealer valuations reportedly fell to 3 times earnings from 6 times.
