Today, America Surrendered. They Might As Well Run Up the White Flag in Detroit.
It’s been apparent for a while that Ford, GM and Stellantis can’t compete with Chinese Electric Vehicle manufacturers.
And as EV’s are the future for the rest of the world, the U.S. and their leader, have surrendered the EV market for the world to China.
By doubling down on fossil fuels and ICE’s, the U.S. is falling farther and farther behind. So much so that Ford has completely surrendered and will no longer produce EV models for it light trucks and cars.
Today, Ford announced it has dumped its $20 billion dollar transition to electric vehicles.
China’s Dominance
China has established a commanding lead in the global electric vehicle sector due to a combination of long-term government industrial policies, massive subsidies, and an integrated supply chain.
China’s market share accounts for 60% of worldwide EV sales, and in 2024, nearly half of all new car sales in China were electric.
China has some distinct advantages. In terms of affordability, as Chinese companies like BYD produce vehicles for not just lower prices, but for less than half of its North American competitors. Some models sell for as little as $10,000.
China committed early on to EV’s and has not wavered. America got into the market late and has done nothing but waver. China controls the majority of the global EV battery supply chain and has a robust domestic manufacturing ecosystem. This includes fierce internal competition, combined with rapid intervention that drives down costs.
Not only are U.S. material costs much higher than in China, but the salary and the benefits paid to unionized U.S. workers is unbelievably more expensive.
A Chinese autoworker earns about $2.08 cents per hour after changing the Yuan into the U.S. dollar, whereas an American worker earns $28.50 an hour. This doesn’t include benefits or pension.
Does anyone actually believe that the U.S. workers will roll back their salaries to a point to be competitive? Will the companies?
Of course not.
In fact, overseas sales of big three electric vehicles is so dismal that they will likely remove themselves from the Chinese market.
Protectionism and Tariffs
What’s worse for the U.S. is that they aren’t even competing in the U.S. with Chinese vehicles as the U.S. government has placed a 100% tariff on Chinese vehicles.
When you can’t sell your EV’s in North America when there is essentially almost no competition due to tariffs, you know where your future does NOT lie.
U.S. protectionism was intended to give U.S. automakers time to scale up their own production and become competitive. In fact the opposite has happened and U.S. automakers have now ceded the EV market and its future to China.
Instead, Trump’s actions have sounded the bellwether ‘death knell’ for American automakers in Canada. Canadians are steadily decreasing their purchase of U.S. made vehicles, but Trump’s arrogance and ignorance has increased the speed with which the demise of America’s automakers in Canada will occur.
U.S. vehicles face a countervailing duty of 25% on every car brought into Canada. Add that to what already were ludicrous prices for U.S. light trucks and cars, and the dropping of countervailing duties on Chinese vehicles, and in a year you’ll be lucky if you can find a big three dealership in this country.
The author is probably a good example of what is happening to the automotive sector in Canada. The last time I bought a North American made vehicle was in 1983. And myself and both of my daughters have between us, purchased four Japanese and German vehicles in the last six months, two electric and two hybrids, none of them built or assembled in North America.
https://www.autoblog.com/news/we-now-know-the-true-cost-of-evs-vs-ice-vehicles-and-its-shocking
Today, autoblog.com stated that;
“Charging an EV costs significantly less than filling a gas tank, despite upfront price differences.”
And for Canadians, the difference is even greater. At 9 cents per kilowatt hour, it costs an owner about $2.00 per 68 miles. For ICE vehicles in BC that converts to at least 2 gallons of fuel on an SUV, for example, which amounts to $13.00 in Vancouver at the moment. If on average a Vancouverite puts 10,000 miles on his ICE vehicle, the costs would be $4,333.00 per year for fuel. Whereas the EV would cost $294.00.
In Canada, the price of an average EV, less rebate in 2025 is $65,000 while the average price of an ICE vehicle is around $50,000. The average ownership of an EV is five years. In five years an ICE vehicle (without maintenance) would cost $21,665 while for an EV (without any maintenance) would cost $1470.
For an ICE vehicle, the average annual maintenance cost is approximately $1200 per year or $6000 more over five years.
Therefore for a ICE vehicle over five years, the cost would be$77,665, while for the EV over the same period the costs would be $66,470, and at the present time, fuel is at the lowest it as been in over a year.
Now, consider that these costs illustrate present vehicle prices for EV’s and ICE vehicles, then cut the price of the EV to what the average price would be for a Chinese EV from BYD, and you can shave at least another $15,000 off of the above EV five year costs.
Saving more than $26,000 CDN would likely destroy Detroit’s sales of any ICE vehicles in Canada.
Last year approximately 850,000 American made vehicles were imported to Canada.
If these sales were lost, the loss to the Big 3 manufacturers would amount to 42,500,000,000.
This would be a debacle for the Big 3, and likely cause the closure of all American-made car sales dealerships and manufacturing plants in Canada.
And as for synthetic fuels? Not even a starter. The cheapest synthetic fuels cost between $10.00 and $38.00 per gallon, so let’s just say, that’s not going to happen.
In any event,this is pretty much an example of what’s occurring to date, without Chinese vehicles in the market, here in Canada.
Imagine if Canada drops the EV 100% tariff on Chinese vehicles?
And Canada intends on providing a purchase stimulus of $7,000 dollars on a fully EV in 2026, on top of this.
Canada will, based on what America is trying to do to Canada and Canadians in relation to imported vehicles, likely go concertedly towards EV’s, which will mean the death-knell for the Big 3 in Canada.
But Donald, thanks for providing the additional impetus to dump U.S. vehicles.
Canada’s Future IS EV’s
For a variety of reasons, from electrification costs to Canadian acceptance and Federal and Provincial incentives, not to mention that Canadian hydroelectric costs are the lowest in the world, Canada will make a complete break with American policy on EV’s.
Unlike the U.S., Canada is going to drop the 100% tariff that the U.S. wanted imposed on China’s vehicles. Combined with Canada having all of the necessary infrastructure, battery development, and manufacturing capability, — Canada will invite Chinese auto manufacturers to enter the Canadian market and to produce some of their products in Canada.
And Canada will have the infrastructure, materials, plants and educated workforce to take advantage of the arrival of Chinese manufacturers.
While Canada has extended the implementation of EV’s in Canada, primarily due to the ongoing trade war with the U.S., it has reinstituted the EV incentives for 2026.
There is the likelihood that with government incentives, buying Chinese EV cars and trucks in Canada will sell for less than ICE vehicles of similar styles.
And since the Big 3 have decided to decrease their loyalty to manufacturing in Canada, every EV that will sell in Canada in the coming years, will be one less vehicle manufactured and sold by Detroit.
The World Is Watching
Newsweek reported on Oct. 1st, 2025 that’
“EV’s are the gateway to a new military-industrial era, and China is Winning…”
“If America fails to lead (or even compete) in the EV space, it won’t just miss its climate targets–it will forfeit its industrial base, hollow out its manufacturing heartland and turn Detroit, once the symbol of American ingenuity, into a legacy domestic supplier of gasoline-powered pickups. In short the United States stands to lose the technological edge that made it a superpower while the rest of the world zooms past.”
Canada’s relationship with the U.S., is over.
Canada is building new trade relationships with the world, including China, and Canada has all the necessary resources that the world needs for the future.
There is absolutely no advantage for Canada to remain bound to the U.S. in relation to trade, foreign policy or military collaboration and Canadians are intent on providing Prime Minster Carney with all the support and financial resources he needs to make Canada an energy superpower, that will provide Asia and Europe with all their energy needs in the 21st Century.
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