00:00 Speaker A
Even before these tariffs, Jeff, the threat of these these tariffs, what what has affordability been like in the US auto sector? How would you characterize it?
00:15 Jeff
Well, affordability is definitely an issue, uh, and because of inflation, uh, supply chain issues, and also the cost to transition electrification. I believe gasoline cars are subsidizing a lot of this transition electrification. And the one thing look at globally is the different markets. These car manufacturers are are global manufacturers. Now as in China, you’re in November. And, uh, looking at the market there, the Chinese markets 10 million more cars than the United States new car markets, the biggest in the world. And the Chinese domestic manufacturers are pushing out all the other non-Chinese manufacturers. And that’s very been a very important market for many manufacturers in Europe, United States, and Asia. And then go to Europe, they’re going 100% EV by 2035, which is impossible to achieve, but I’m sure the governments are going to hold on as long as they can. And the United States is going to go eliminate all incentives subsidies to EVs and let the free market decide. These are all different markets. So and now they have to deal with tariffs in the United States. So the manufacturers are really in a rock between a rock and a hard place.
03:09 Speaker A
Jeff, really helpful insight and analysis there. Thanks so much for joining us today. Appreciate it.
03:16 Jeff
Thanks for having me.