Why America's Automobile Manufacturers are Fraught with Extreme Vigilance and Paranoia

n this conversation, Chris Berry interviews Michael Dunne about the current state of the automotive industry, with a focus on electrification and the role of Western OEMs.

They discuss the shift of automotive production to Asia, particularly China and Southeast Asia, and the challenges faced by Western OEMs in catching up to Chinese competitors. They also explore the barriers to widespread adoption of electric vehicles, including cost and infrastructure, and the need for investment in the battery supply chain.

The conversation touches on the potential impact of the Infrastructure Investment and Jobs Act (IRA) on the industry and the presence of Chinese EV brands in Western markets. The conversation explores the Chinese EV industry's playbook of overcapacity and its impact on the global market. It discusses the challenges faced by Western automakers in competing with China's low-cost production and massive scale.

The conversation also touches on the role of technology, including AI and autonomous driving, in the Chinese market. Lesser-known players in the EV and autonomy space, such as Baidu, Xiaomi, and Vinfast, are highlighted. The mood of the client base is described as extreme vigilance and paranoia, with executives grappling with various challenges and uncertainties.

The conversation concludes with a mention of a forthcoming book by Michael Dunne titled 'Humiliation No More,' which explores China's ambitions through the lens of its auto industry.