December 7, 2025 • 32 mins
Earlier this year, I enjoyed a delicious lunch in Mexico City with Luis Lozano, the former CEO of Toyota de Mexico. Luis immediately impressed me with his knowledge of the Mexican car market, the shock of hundreds of thousands of Chinese imports since 2020 and the possibilities that Chinese automakers will try to make Mexico a production base for exports to the United States. One of his goals, Luis told me, was to open American eyes to the current realities of Chinese cars. They are good value for money, they are coming our way. And they are not turning back. So, which companies are ones to watch? Are they going to build plants in Mexico as they have done in Brazil, Spain and Thailand? How soon? In today's conversation we get answers to those questions here on the Driving With Dunne podcast.
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Episode Transcript
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Speaker 1 (00:02):
We're top executives and crazy entrepreneurs gathered to talk about
the future of electric vehicles. This is a Driving with
Done podcast. Hello and welcome to the Driving with Done podcast.
I am your host, Michael dunn Well. Earlier this year,
I enjoyed a delicious lunch in Mexico City with Luis Lozano.
(00:24):
He's the former CEO of Toyota to Mexico, and he
immediately impressed me with his knowledge of the car market,
the shock of hundreds of thousands of Chinese imports since
twenty twenty, and the possibilities that Chinese automakers could make
Mexico a production base for exports too yes to the
United States. One of his goals, Louise told me, was
(00:46):
to open American eyes to the current realities of Chinese cars.
They're good value for money, They're coming our way and
they're not turning around. They're not going back to China.
So which companies are the ones to watch? Are they
going to build plants in Mexico as they've done in Brazil,
Spain and Thailand, And if so, how soon? In today's conversation,
(01:08):
we get answers to those questions from the one and
only Luis Lozano here on the Driving with Done podcast.
Mister Luis Lozano, welcome to the Driving with Done podcast.
Speaker 2 (01:29):
Well, thank you so much, Mike. It's great to be
here and very happy to talk to your audience.
Speaker 1 (01:34):
You're joining us today from Mexico City, where we first met.
And I'm curious if you could tell us if you
stepped out on the street today right now, what would
you see. Are there any Chinese cars on the streets.
Speaker 2 (01:47):
You would probably see ten Chinese cars in the next
twenty seconds if you go out in traffic.
Speaker 1 (01:53):
Ten cars in twenty seconds is already.
Speaker 2 (01:57):
It's that thick already. What happened with the Mexican situation
was very impressive because during the pandemic, somehow many of
the Chinese brands sneaked in the Mexican market. Nobody noticed it,
and then when people went back to their jobs and
to their homes and they could go out, then there
(02:19):
were several brands already there with a lot of volume.
And let's remember that back then the traditional brands had
a huge problem of supply when supply chains of the
semiconductors and the tires and the many parts were interrupted globally,
so these guys took advantage of it, and they did it.
Speaker 1 (02:41):
Very very I never thought of that before. So our
impression at the time was automakers globally cannot get their
hands on these parts or semiconductors. But the Chinese were
able to somehow because many of them are made in
their own backyard.
Speaker 2 (02:56):
Correct, and they had the inventory already.
Speaker 1 (02:58):
Ah huh, they had the inventory. Okay, which brands are
you seeing out there?
Speaker 2 (03:02):
I think the most important one, without a doubt, is
Bad right now, it's the hottest product. They are launching
products every every two months, every three months. They were
very very fast in changing their their initial strategy because
they came into Mexico with a vision of their with
their electric vehicles version. Mexico is not prepared and it's
(03:26):
far from being prepared to have and hold a good
electric ecosystem for electric vehicles. There no charging. Uh, still
complex in terms of home arrangements to have your own
charging in your house. And there's there's problems in capacity
for generation of electricity in Mexico in general. And but they,
(03:50):
you know, in a question of two or three months,
they changed to plowing hybrids and they have been a
great success.
Speaker 1 (03:56):
It is that quickly two or three months they flipped it.
Usually in that you used to work at Toyota. How
long would that take it?
Speaker 2 (04:03):
Toyota much longer. I think Toyota. Toyota has a very
traditional view of planning and then executing that it's and
of course a lot of comedies and.
Speaker 3 (04:13):
You know, you can relate to that and put these
guys just you know, a call and they said, you know,
next next boat send you know, ploying hybrids, that was
as fast.
Speaker 1 (04:25):
When I visited last I saw the what they call
the Mini Dolphin that's the entry level city car, a
memory that was about twenty thousand. But they also have
a very impressive plug in hybrid pickup truck that I
think people in America would be hot to get their
hands on.
Speaker 2 (04:41):
The shark. Yes, and as a matter of fact, I've
driven it for people that don't you know, your owns
that don't know. I presided Mexico Toyoda Mexico for five
years and we have here two plants that are making
the Tacoma pickup truck. So I've driven some pickups in
my life. Okay, that's just for a reference.
Speaker 1 (05:02):
Taco truck that coe is the best in class, not
just if truck they're the best.
Speaker 2 (05:08):
It's a spectacular truck, but this one, the Shark, is
really surprising. I mean, it's not a cargo and a
working truck yet because it's still driven fun, very fast,
very trendy. In terms of the interiors, obviously everything you know,
screens everywhere and that kind of stuff. But there is
a market for people that just want to drive a
(05:30):
pickup because they want to look good and they're not
using them for work, and I think this is a
very competitive approach to that.
Speaker 1 (05:39):
Now, from the outside, we're always curious about numbers, and
that remind us how big is the Mexican market, and
then that new car sales this year? How much what
Chinese brands get more or less? What do you think?
Speaker 2 (05:51):
Well, that's that's where it gets tricky. Now. The size
of the market of Mexico is not as big as
the United States. Obviously, it's one point five million every
year all industry. However, what people in the US don't
realize is that it's a very sophisticated market. We have
far more brands than the US market has, and we
have had this even before the Chinese brands came in.
(06:14):
We you know, we had like thirty brands, while the
US had you know, probably fifteen or eighteen. And right now,
according to the calculations, and I'll say why, but according
to the calculations that I've been questioned and preparing for
this podcast, they say that they may be there may
be between thirty or forty Chinese brands that have been
(06:36):
introduced in the Mexican market since twenty twenty thirty or forty.
And then you have the traditional brands, you know, the Piolas,
the Fords, the Bwus that we're here already. So the
question here is that there is no legal requirement by
government to report sales. So this is very convenient for
(06:59):
some of the brand in particularly I.
Speaker 1 (07:02):
Think is that a little bit unusual that the government say, hey,
would you guys please to report your sales or yeah?
Speaker 2 (07:07):
No, no, no, It's completely unusual and it's unpractical because
even now, if you go to the Ministry of Economy
into Mexico and you ask what's the size of your industry,
they wouldn't know. So only some companies and particularly traditional ones,
are reporting sales, and the Chinese, the new Chinese brands
are not reporting sales or at least not all of them,
(07:30):
which is convenient obviously because you know, it's it's kind
of a bit glarry of the size and the aggressivity
that they're bringing. But as I told you, if you
go out in the streets, you can see that the
change and you can see the brands or recirculating in
our streets.
Speaker 1 (07:46):
Okay, so you have BYD plus possibly thirty to forty
more brands speculating in the streets of Mexico. Off the
top of your head, we don't know the numbers, but
who would be the next two or three brand bid there?
Speaker 2 (08:01):
I think at the big wad probably MG, because MG,
and again for the audience, the segments in Mexico are
you know, we have a lower income in terms of country,
so we go and purchase as a whole or in
the case of volume, cheaper vehicles. MG was very aggressive
(08:22):
with lower segments introduction, so their volume is pretty impressive also.
And I think also Sherry or Chira in Mexico because
somebody took the brands so they're called Chira here in Mexico.
They are very impressive also, although although they have been
experiencing problems with their market representation.
Speaker 1 (08:43):
What kinds of problems if any what inevitably every automaker
has some hiccups or problems or scars, What, if anything,
are you hearing about the Chinese brands. On the negative.
Speaker 2 (08:54):
Side, I think that the Chinese brands have to learn
how to become a global company. They are Chinese brands,
and they want to establish a Chinese form of doing
business whatever they are, you know, locating themselves. If you
remember a couple of maybe maybe twelve months ago, uh
Bad was building a manufacturing facility in Brazil and they
(09:16):
were building housing within the factory because that's the way
you do it in China. But of course in the
Western world is like what, what do you want people
to live in the factory inmate prisoners exactly? That's completely unacceptable.
So they had to learn how to become global by
understanding before they land and before they before they are aggressivity,
(09:39):
how the market, how the manufacturing environment, how everything should
be before taking this kind of decisions. So in this case,
I think they are used to being that flexibility that
we just said about BB's employing hyrates. It's also it's
also as fast as they can change the strategy or
(10:00):
the commercial strategy of a company dealers in the US,
dealers in Mexico, which are very alike they are they
are they What they like is long term strategies, far
objectives that you can see and then you can move,
you know, towards time with some certainty that that is
going to happen. And some of these brands come here,
then they change their strategy. They change the numbers, change
(10:23):
the objectives, change the amount of investments that they're asking
the dealers. Uh, and so they tell you, I'll give
you know, Sheray has three brands within their own scope,
and they would say, uh, invest in one dealership, and
will you know, We'll put the three brands in one dealership.
And then second chief comes and says, no, no, no,
(10:43):
We're going to build separate dealership. So it's a it's
a huge change for US group.
Speaker 1 (10:49):
The option A looks great, I'm going to get three
brands under one roof. Yes, I mean option Wait a second,
what happened today? Okay, so that's changing all the time. Okay,
so that's a big adjustment. Just backing up a step,
As you said, you were a CEO of Toyota of Mexico,
so you have an insider's view on how business operates
(11:10):
in Mexico, and I was really intrigued to learn from
you that in recent months many American dealer groups and
investors are coming to you and saying, hey, how can
we get ahead of the curve? Like, first, do you
think that Chinese cars are going to find their way
into the United States? And two, if that's true, what
can we do to get ready? So tell us more
about that. That's a great point.
Speaker 2 (11:31):
I think one of the biggest disadvantages of current trade
policies between the United States and the rest of the
world are that they're pushing away what's inevitable, which is
the Chinese brands are coming to the United States. I
don't know if two years, three years, five, or whenever,
but it's obvious that, you know, when you have this
(11:52):
capacity of producing half of the world's new cars and
the US being such an impressive market, Uh, it's gonna
come there. By the second thought with that is, I
think this is the first time in since World War
Two that the American markets cannot purchase whatever they want,
whatever product is in the world. It's like you're banned from,
(12:16):
you know, purchasing Swiss watches, what, Yeah, exactly. It's like conceptually,
it's very very strange. So we've heard from investors from banks, which,
by the way, who, by the way, are writing all
the time about the threat of the Chinese automotive industry
for the United States, but they have not even driven them.
(12:38):
So we are hosting some investors, some banks, and some
dealer groups so that they can come back down to
Mexico and then test some of these vehicles and have
the experience firsthand, so that they can understand because nobody
will understand until you drive one of these vehicles, the
gap that now the traditional industry has with some of
(13:01):
these vehicles and some of these brands.
Speaker 1 (13:03):
So in a couple of days, get on a flight,
go down to Mexico City, get behind the wheel of
a few different brands, and you just you your knowledge
of an understanding just goes from zero to one hundred completely.
Speaker 2 (13:15):
Yeah, It's it's like it's you cannot write about Paris
without going to Paris. So that's kind of the idea.
Speaker 1 (13:21):
Okay, there we go. Here's a tough one to say.
Toyota is the benchmark is a standard for quality around
the world even now today, making enormous profits very successful
company in so many markets. So if Toyota is let's
just say for fun, Toyota is a ten out of
ten in terms of quality in your experience driving And
(13:43):
I know it's early days too. We don't know the
long term reliability these cars, but just impressions driving them
for the first time. If Toyota's at ten, where would
you put Chinese brands like byd or Cherry up against that?
Speaker 2 (13:58):
Probably the way the would put it in the in
an eight still and that's because I have a doubt
of what's going to happen in the future. But but
but you know your initial sense by driving it, it
may be a ten also, but it's but it's the
way that they're there, they're landing. There's still early. I've
(14:20):
heard that all Chinese brands have had a very complicated
time in terms of post sales and parts of maintenance
because as you and I know this, this business of
the automotive businesses, you have to sell. It's not selling
just one car, selling three or four cars to the
same person. That's a real business. And that's what Toyota
(14:43):
does does very well because people are happy with service,
they're happy with a dealer, they feel like home and
so on. And this is what one thing that the
Chinese in this in this opportunity to understand what a
global company does and that they are not doing yet,
is understand how they can, you know, pamper their customers
(15:04):
towards the future. So I've heard of you know, not
so good reviews from clients that have crashed or have
had any problem with their vehicles in terms of getting
parts of parts.
Speaker 1 (15:18):
Yes, which reminds me. Let's circle back to just for
a moment. One highly controversial and confusing topic in recent
months has been a lot of people come to me
and say, oh my god, the Chinese are building so
many factories in Mexico. And another person going, no, there's
no fact Chinese factories in Mexico. So you're on the
scene there. What's the reality? Are there any Chinese manufacturers
(15:40):
today in Mexico.
Speaker 2 (15:42):
There's no manufacturing facility in Mexico. There's a small c
KD factory factory in central Mexico of Jack and they
have a co investment with Carl's Slim, you know, the
richest Mexican Yes.
Speaker 1 (15:59):
And make some commercial vehicles, is that right?
Speaker 2 (16:02):
The truck that's commercial commercial vehicles. They were planning on
doing something in the lower segment. But the aim, the
objective of my response is that the aim hasn't been
to flood the American market from Mexico, and that was said,
so no manufacturing facilities in Mexico. As a matter of fact,
the way they wanted to invest, I think it was
(16:23):
three billion in Mexico and they have postponed their plans.
And I think that's because of the pressures that Mexican
government is getting from US government.
Speaker 1 (16:34):
In that sense, you can beat on that, right, I
think so as you said prior to I think just
at the front end of COVID, for various reasons, Importugeese
on Chinese cars was zero, then a couple of years
ago was raised at twenty percent, then just recently lifted
again to fifty percent. Do you think that terror freight
(16:55):
is high enough? In other words, would it stop the
flood of Chinese cars coming in or the Chinese saying
so what we're still coming in?
Speaker 2 (17:03):
Well, we have mutual friends that say that that's not enough.
I don't think it's going to be enough because I think,
first of all, the strategy of the Chinese brands, unlike
what happens with the traditional brands is that it's a
strategy that it's aligned with its government number one. So
there's a long term view that they are thinking. We
(17:26):
don't care about profitability right now. We care. What we
care is that we can be dominant in a market.
And just for a reference of our audience. We don't
have manufactory facilities of Chinese vehicles here, but that doesn't
mean Mexico is the first country importing Chinese vehicles in
(17:47):
the world at this point in time. So I think
that that their their objective is not profit or profit fast.
I think they want the market share, and I think
this is this is not going to be too harmful
for their objectives. Maybe it'll filter some small Chinese brands
(18:07):
that had some illusions, but the big ones, I think
they're still okay.
Speaker 1 (18:13):
One of the things we saw in place like Australia
as recently in the UK is that it's the Japanese
brands that are coming under the most pressure. You mentioned
that Mexico when I was there in Mexico City is
so such an eye opener. You have cars from Italy,
from France, from the UK, from Germany, from Czechia, from Korea, Japan, China,
(18:34):
at the US, everywhere you've got such a so. But
I would have thought, I don't know why I would
have thought that European brands might be the first ones
to take the hit. What's it like in Mexico? Who
who's coming under pressure as the Chinese ramp up?
Speaker 2 (18:49):
There? Is it?
Speaker 1 (18:49):
Everybody?
Speaker 2 (18:51):
Not yet? I think Toyota has been the company that
has has has been less hit by brands, and that's
because of the segments where the Chinese companies entered into.
So I think the first, the first companies that have
been impacted have been Nissan, which is number one in
(19:12):
Mexico in terms of market share because the.
Speaker 1 (19:15):
Segments right this sign is number one exactly Okay.
Speaker 2 (19:19):
Big big tent, but they have their their market share
has gone from twenty two percent to seventeen percent in
the last five years. Wow. And then the other one
is General Motors. But this is very tricky because General
Motors is the first importer of Chinese made vehicles in Mexico.
(19:40):
Chinese brand obviously, but is the first importer of Chinese
Chinese made vehicles in Mexico.
Speaker 1 (19:47):
What are the implications of that. Let's talk about that
just for a second I read recently, I'm glad you
reminded me that four of the five best selling cheves
chevyes in Mexico are built in China by the joint
venture in which GM has fifty percent ownership. So in essence,
you could call it badge engineering. Actually the Chinese are
(20:07):
manufacturing Chevy's putting a its brand on there. How long
before the Chinese say we don't really need your brand,
thank you very much, we'll take the market. Is that
where this is going well?
Speaker 2 (20:19):
I think if you see the BW experience with their
presence in China, in the China market and the relevance
that they the company put in the Chinese market, and
then how fast they let them just drop, I think
there's a huge risk for every company that has a
partnership in China, but that you know, may be a
(20:41):
reality sooner rather than later. What's incredible from the general
motors standpoint of view is that they will not be
hit by the tariffs even though they have this Chinese
made cars, because there's a public policy in Mexico that
if you produce in Mexico, I need to have a
manufacturing production plant in Mexico. You can you know, a
(21:04):
proportion of what you're building you can bring without duties
into Mexico. Mmm, so they will be saved.
Speaker 1 (21:11):
Wow, that's a sweet deal for them.
Speaker 2 (21:13):
Yeah.
Speaker 1 (21:14):
So they may be subject to no duties coming in exactly.
M So there's alten almost an incentive for them to
kill themselves.
Speaker 2 (21:28):
Uh it's like a drug.
Speaker 1 (21:30):
Uh huh.
Speaker 2 (21:31):
This is like drugs. It's like like the incentives in
and become addicted.
Speaker 1 (21:36):
Let's let's be optimistic, just addicted to kill themselves, but
to get hooked on attacking. Okay, good, what else do?
Something you said early on really got my attention. And
this is so important for our listeners in America because
we're on an island here. You know, I live in
San Diego. I can walk across the border here and
(21:56):
there's a B y D dealership within a within a mile,
there's Chinese cars around, and we, as you said, we
don't see them, we don't touch them. But we US
and Canada areb But the only two countries left on
the planet, maybe I can't think of Japan has Chinese cars?
Now be why these in that Korea has Chinese cars
in there? So even some of the most protective marks
(22:17):
in the world have Chinese cars? How soon your prediction?
No one knows the future. How soon do you think
Chinese cars will find their ways into the US one
way or another.
Speaker 2 (22:27):
I think within five years, that's my prediction. And one
of the things that it's important, and I think it's
also an opportunity for dealer groups in the United States
is so they see the Mexican market as very far away,
but we are very alike and we could be kind
of a small lab for some of the dealer groups
that one on them understand how to handle the Chinese executives,
(22:49):
how to handle the Chinese ORMs to how they are
working or it's the future. So in that sense, I think,
you know some of them that might be thinking of
you know, this is coming at us, we might as
well learn. I think that's a great Mexico becomes a
great opportunity to do so in that sense.
Speaker 1 (23:07):
A great test bet. As you said, we've never found
ourselves in the position where the US is behind. Is
the one that doesn't have access to that product get
over there. You have a portfolio of dealerships across the
United States, maybe fifteen twenty fifty. Who knows public groups
even bigger you go, We're just going to take some
of our investment funds and we're going to put them
(23:27):
into place a couple bets in Mexico and at a
minimum will learn what it's like to work with the Chinese.
Speaker 2 (23:32):
Correct that is correct?
Speaker 1 (23:34):
Okay? Is now a good time for that? What's the
sense overall in the industry. You've been in the industry,
you're veteran, you've seen it as a leader at Toyota.
Do you think that there are openings for investors from
the United States to go buy dealerships in Mexico today?
Speaker 2 (23:50):
Don't? I don't think. Let me tell you that. I
think the dealer groups in Mexico are very close. It's
obvious and has happened in other places. The second thing
is that we don't have a franchise law, so that
allows OEMs to have, you know, to do whatever they
want in terms of selecting or not selecting dealers and
if you can change or not change, or you can sell.
(24:10):
And although I do I think those those things are
preventing or maybe may not may not be as attractive
to for dealer groups to come in. Those things may
change in the in the near future because of anti
trust laws. And anti trust changes in the Mexican industry. However,
what I would say is that I think because of
(24:31):
the amount of brands that are coming into our market,
they're starting to struggle in terms of finding appropriate representation.
We have we have, you know, we have one point
five million industry, so we have a limited number of groups,
traditional dealer groups, and those are you know, already occupied
by many of these brands. So yeah, so we're going
(24:53):
to get to a point in which finding representation is
going to be a challenge. Okay.
Speaker 1 (24:58):
Possibly another option could be the take a minority position
in an existing group, just like an investor would have
a portfolio, I'm going to invest, so I have a
view of what to expect when the Chinese do come.
Speaker 2 (25:09):
Correct. Although I thinks I'm a big believer that when
you want to do something and do business, you go
at it and you try to influence your way into it.
I think there's there has not been any hunger from
any big dealer group or any private fund or doing
so they want to do it. I think there's I mean,
(25:30):
there's a way to do it.
Speaker 1 (25:31):
Okay, very good, And if you were if you were
going to choose a city in Mexico to be at
the top of your list of places to look. What
city would that be?
Speaker 2 (25:41):
I think metropolitan areas would be the most relevant, meaning
obviously Mexico City, which is it would be difficult to
enter because this is the most priced in terms of volume, obviously,
But I think Monterey and what Alahada maybe, or Uebl
and Leon maybe cities where you could you know, you
(26:05):
could do a pretty good experiment.
Speaker 1 (26:06):
Which one has the best weather?
Speaker 2 (26:09):
I think probably Leon, puebl and Mexico City.
Speaker 1 (26:13):
Okay, that's food, Well that's very important too.
Speaker 2 (26:18):
Yeah, well, the best food. I would say it's a
general it's a general virtue of Mexico. But the weather
in Monterey is terrible as okay, very great Texas like
you know, very hot, very cold, very extremely all right.
Speaker 1 (26:35):
I won't tell our mutual friends about that. Moderate people
from very proud of their hometown.
Speaker 2 (26:42):
They are the.
Speaker 1 (26:44):
Last question for you, Luis, And it may or may
not be relevant, but people will often talk about China, Mexico,
us U s m c A is coming up as
I understand it, for review, what's the way forward? Do
you see it time in the future where USMCA says
we're fortress North America. We don't have any Chinese cars here,
(27:07):
or how does that get worked out? How do you
see that happening.
Speaker 2 (27:10):
I think we're you know, we're in a very relevant
situation right now because I think the traditional brands, and
when I meet traditional brands is those companies that have
already manufacturing facilities all around North America, including Mexico, Canada,
and the United States, and a supply base and a
value chain that has already been created. They are under
(27:33):
attack right now because of the US policy of having tariffs.
So right now the traditional industry is fighting with the
Chinese in some markets. And at the same time, I
bring tariffs to be able to sell in their own
turretor And so what I would like to see is
(27:54):
a North American alignment of the three governments saying how
do we strengthen and companies. We talked about the alignment
of the Chinese government and the brands to dominate. Well,
I think someone should be thinking of how do we
guarantee the success of the manufacturing industry of North America
(28:14):
for the future. But that's not happening at this point
in time. It's not happening. I think that so long
as there's President Trump remains in the administration. I think
it's going to be difficult for the Chinese to enter
into North America. I think that's what it's going to be,
one one, one renivent thing. But but as I said,
(28:35):
I think it's unstoppable at the end of the day,
and probably in the next administration will not be able
to to handle the pressure of the technology, the product,
the sexiness that you know that the Chinese brands are
bringing into the market.
Speaker 1 (28:53):
And they're not stopping, they're not slowing down. They're Louis said,
this has been absolutely extraordinary insights. So appreciative of your knowledge,
your experience, and your wisdom with regards you're seeing it.
You're right in the intersection right there in Mexico where
the Chinese are coming in and you can feel it firsthand. So,
first off, thank you for joining us today. And number two,
(29:17):
how do people get a hold of you? I'm sure
there's many listeners out there want to learn more from you.
Speaker 2 (29:22):
Well, thank you so much. Right now, I am reachable
at my email it's L L O M A D
R I D at gmail dot com.
Speaker 1 (29:33):
Is that a Madrid in there? Did I hear L? L? O.
Speaker 2 (29:36):
Madrid, old Madrid at gmail dot com. I'm in the
middle of right now of incorporating my new company, so
I don't have the official emails yet. Well I'll let
you know, of course. And it's been an absolute pleasure
as always to talk to you. Always admire your knowledge
(29:56):
of the industry and of Asia and particularly China, so
I always I always enjoy our conversation.
Speaker 1 (30:04):
Thank you so much. And I know our listeners after
hearing our conversation today are going to be very hungry
to learn more from you. I would like, Oh guy,
it's right on our doorstep here and we have a
huge blind spot, so let's go learn quickly because that
tsunami is coming our way and it's not going back. Yeah,
thank you again, Luis, we talked to Thank you. Take
(30:26):
care when you think about it. We're in a new
and strange situation where Chinese cars are sitting right there
on our doorstep, right there in Mexico, hundreds of thousands
of them. How soon will they find their way into
(30:48):
the US market? Three takeaways. One, Mexico has promised to
lift import tariffs to fifty percent, but who cares? That
might dent the momentum. But it's unlikely to stop Chinese
in Two, dealers in Mexico tell me when they tell
Louise that they're a little bit conflicted. There's fear of
missing out sitting right next to fear of getting burned
(31:11):
by the Chinese when it comes to business to market
areas and to abrupt changes in their agreements. And Third,
this is exciting. Louise is now organizing events at racetracks
near Mexico City. What for well investors and dealer groups
from America who would like to do their own test
drives of Chinese cars, Seeing and driving is believing. Hey,
(31:36):
I hope you enjoyed this episode of the Driving With
Done podcast. Send me a dm an email. What were
your ideas, your impressions. We love to hear from you.
I am Michael Dunn and this is the Driving with
Done podcast.
Speaker 2 (31:53):
Where you meet the experts creating the technologies that will
power tomorrow's cars electric autonomous software.
Speaker 1 (32:00):
To find This is the Driving with Done podcast.
Speaker 2 (32:04):
Thank you for joining this episode of the Driving with
Done podcast.
Speaker 1 (32:08):
To connect with Michael Donn, visit doninsights dot com or
find Michael on x or LinkedIn. This is the Driving
With Done Podcast.
We're top executives and crazy entrepreneurs gathered to talk about
the future of electric vehicles. This is a Driving with
Done podcast. Hello and welcome to the Driving with Done podcast.
I am your host, Michael dunn Well. Earlier this year,
I enjoyed a delicious lunch in Mexico City with Luis Lozano.
(00:24):
He's the former CEO of Toyota to Mexico, and he
immediately impressed me with his knowledge of the car market,
the shock of hundreds of thousands of Chinese imports since
twenty twenty, and the possibilities that Chinese automakers could make
Mexico a production base for exports too yes to the
United States. One of his goals, Louise told me, was
(00:46):
to open American eyes to the current realities of Chinese cars.
They're good value for money, They're coming our way and
they're not turning around. They're not going back to China.
So which companies are the ones to watch? Are they
going to build plants in Mexico as they've done in Brazil,
Spain and Thailand, And if so, how soon? In today's conversation,
(01:08):
we get answers to those questions from the one and
only Luis Lozano here on the Driving with Done podcast.
Mister Luis Lozano, welcome to the Driving with Done podcast.
Speaker 2 (01:29):
Well, thank you so much, Mike. It's great to be
here and very happy to talk to your audience.
Speaker 1 (01:34):
You're joining us today from Mexico City, where we first met.
And I'm curious if you could tell us if you
stepped out on the street today right now, what would
you see. Are there any Chinese cars on the streets.
Speaker 2 (01:47):
You would probably see ten Chinese cars in the next
twenty seconds if you go out in traffic.
Speaker 1 (01:53):
Ten cars in twenty seconds is already.
Speaker 2 (01:57):
It's that thick already. What happened with the Mexican situation
was very impressive because during the pandemic, somehow many of
the Chinese brands sneaked in the Mexican market. Nobody noticed it,
and then when people went back to their jobs and
to their homes and they could go out, then there
(02:19):
were several brands already there with a lot of volume.
And let's remember that back then the traditional brands had
a huge problem of supply when supply chains of the
semiconductors and the tires and the many parts were interrupted globally,
so these guys took advantage of it, and they did it.
Speaker 1 (02:41):
Very very I never thought of that before. So our
impression at the time was automakers globally cannot get their
hands on these parts or semiconductors. But the Chinese were
able to somehow because many of them are made in
their own backyard.
Speaker 2 (02:56):
Correct, and they had the inventory already.
Speaker 1 (02:58):
Ah huh, they had the inventory. Okay, which brands are
you seeing out there?
Speaker 2 (03:02):
I think the most important one, without a doubt, is
Bad right now, it's the hottest product. They are launching
products every every two months, every three months. They were
very very fast in changing their their initial strategy because
they came into Mexico with a vision of their with
their electric vehicles version. Mexico is not prepared and it's
(03:26):
far from being prepared to have and hold a good
electric ecosystem for electric vehicles. There no charging. Uh, still
complex in terms of home arrangements to have your own
charging in your house. And there's there's problems in capacity
for generation of electricity in Mexico in general. And but they,
(03:50):
you know, in a question of two or three months,
they changed to plowing hybrids and they have been a
great success.
Speaker 1 (03:56):
It is that quickly two or three months they flipped it.
Usually in that you used to work at Toyota. How
long would that take it?
Speaker 2 (04:03):
Toyota much longer. I think Toyota. Toyota has a very
traditional view of planning and then executing that it's and
of course a lot of comedies and.
Speaker 3 (04:13):
You know, you can relate to that and put these
guys just you know, a call and they said, you know,
next next boat send you know, ploying hybrids, that was
as fast.
Speaker 1 (04:25):
When I visited last I saw the what they call
the Mini Dolphin that's the entry level city car, a
memory that was about twenty thousand. But they also have
a very impressive plug in hybrid pickup truck that I
think people in America would be hot to get their
hands on.
Speaker 2 (04:41):
The shark. Yes, and as a matter of fact, I've
driven it for people that don't you know, your owns
that don't know. I presided Mexico Toyoda Mexico for five
years and we have here two plants that are making
the Tacoma pickup truck. So I've driven some pickups in
my life. Okay, that's just for a reference.
Speaker 1 (05:02):
Taco truck that coe is the best in class, not
just if truck they're the best.
Speaker 2 (05:08):
It's a spectacular truck, but this one, the Shark, is
really surprising. I mean, it's not a cargo and a
working truck yet because it's still driven fun, very fast,
very trendy. In terms of the interiors, obviously everything you know,
screens everywhere and that kind of stuff. But there is
a market for people that just want to drive a
(05:30):
pickup because they want to look good and they're not
using them for work, and I think this is a
very competitive approach to that.
Speaker 1 (05:39):
Now, from the outside, we're always curious about numbers, and
that remind us how big is the Mexican market, and
then that new car sales this year? How much what
Chinese brands get more or less? What do you think?
Speaker 2 (05:51):
Well, that's that's where it gets tricky. Now. The size
of the market of Mexico is not as big as
the United States. Obviously, it's one point five million every
year all industry. However, what people in the US don't
realize is that it's a very sophisticated market. We have
far more brands than the US market has, and we
have had this even before the Chinese brands came in.
(06:14):
We you know, we had like thirty brands, while the
US had you know, probably fifteen or eighteen. And right now,
according to the calculations, and I'll say why, but according
to the calculations that I've been questioned and preparing for
this podcast, they say that they may be there may
be between thirty or forty Chinese brands that have been
(06:36):
introduced in the Mexican market since twenty twenty thirty or forty.
And then you have the traditional brands, you know, the Piolas,
the Fords, the Bwus that we're here already. So the
question here is that there is no legal requirement by
government to report sales. So this is very convenient for
(06:59):
some of the brand in particularly I.
Speaker 1 (07:02):
Think is that a little bit unusual that the government say, hey,
would you guys please to report your sales or yeah?
Speaker 2 (07:07):
No, no, no, It's completely unusual and it's unpractical because
even now, if you go to the Ministry of Economy
into Mexico and you ask what's the size of your industry,
they wouldn't know. So only some companies and particularly traditional ones,
are reporting sales, and the Chinese, the new Chinese brands
are not reporting sales or at least not all of them,
(07:30):
which is convenient obviously because you know, it's it's kind
of a bit glarry of the size and the aggressivity
that they're bringing. But as I told you, if you
go out in the streets, you can see that the
change and you can see the brands or recirculating in
our streets.
Speaker 1 (07:46):
Okay, so you have BYD plus possibly thirty to forty
more brands speculating in the streets of Mexico. Off the
top of your head, we don't know the numbers, but
who would be the next two or three brand bid there?
Speaker 2 (08:01):
I think at the big wad probably MG, because MG,
and again for the audience, the segments in Mexico are
you know, we have a lower income in terms of country,
so we go and purchase as a whole or in
the case of volume, cheaper vehicles. MG was very aggressive
(08:22):
with lower segments introduction, so their volume is pretty impressive also.
And I think also Sherry or Chira in Mexico because
somebody took the brands so they're called Chira here in Mexico.
They are very impressive also, although although they have been
experiencing problems with their market representation.
Speaker 1 (08:43):
What kinds of problems if any what inevitably every automaker
has some hiccups or problems or scars, What, if anything,
are you hearing about the Chinese brands. On the negative.
Speaker 2 (08:54):
Side, I think that the Chinese brands have to learn
how to become a global company. They are Chinese brands,
and they want to establish a Chinese form of doing
business whatever they are, you know, locating themselves. If you
remember a couple of maybe maybe twelve months ago, uh
Bad was building a manufacturing facility in Brazil and they
(09:16):
were building housing within the factory because that's the way
you do it in China. But of course in the
Western world is like what, what do you want people
to live in the factory inmate prisoners exactly? That's completely unacceptable.
So they had to learn how to become global by
understanding before they land and before they before they are aggressivity,
(09:39):
how the market, how the manufacturing environment, how everything should
be before taking this kind of decisions. So in this case,
I think they are used to being that flexibility that
we just said about BB's employing hyrates. It's also it's
also as fast as they can change the strategy or
(10:00):
the commercial strategy of a company dealers in the US,
dealers in Mexico, which are very alike they are they
are they What they like is long term strategies, far
objectives that you can see and then you can move,
you know, towards time with some certainty that that is
going to happen. And some of these brands come here,
then they change their strategy. They change the numbers, change
(10:23):
the objectives, change the amount of investments that they're asking
the dealers. Uh, and so they tell you, I'll give
you know, Sheray has three brands within their own scope,
and they would say, uh, invest in one dealership, and
will you know, We'll put the three brands in one dealership.
And then second chief comes and says, no, no, no,
(10:43):
We're going to build separate dealership. So it's a it's
a huge change for US group.
Speaker 1 (10:49):
The option A looks great, I'm going to get three
brands under one roof. Yes, I mean option Wait a second,
what happened today? Okay, so that's changing all the time. Okay,
so that's a big adjustment. Just backing up a step,
As you said, you were a CEO of Toyota of Mexico,
so you have an insider's view on how business operates
(11:10):
in Mexico, and I was really intrigued to learn from
you that in recent months many American dealer groups and
investors are coming to you and saying, hey, how can
we get ahead of the curve? Like, first, do you
think that Chinese cars are going to find their way
into the United States? And two, if that's true, what
can we do to get ready? So tell us more
about that. That's a great point.
Speaker 2 (11:31):
I think one of the biggest disadvantages of current trade
policies between the United States and the rest of the
world are that they're pushing away what's inevitable, which is
the Chinese brands are coming to the United States. I
don't know if two years, three years, five, or whenever,
but it's obvious that, you know, when you have this
(11:52):
capacity of producing half of the world's new cars and
the US being such an impressive market, Uh, it's gonna
come there. By the second thought with that is, I
think this is the first time in since World War
Two that the American markets cannot purchase whatever they want,
whatever product is in the world. It's like you're banned from,
(12:16):
you know, purchasing Swiss watches, what, Yeah, exactly. It's like conceptually,
it's very very strange. So we've heard from investors from banks, which,
by the way, who, by the way, are writing all
the time about the threat of the Chinese automotive industry
for the United States, but they have not even driven them.
(12:38):
So we are hosting some investors, some banks, and some
dealer groups so that they can come back down to
Mexico and then test some of these vehicles and have
the experience firsthand, so that they can understand because nobody
will understand until you drive one of these vehicles, the
gap that now the traditional industry has with some of
(13:01):
these vehicles and some of these brands.
Speaker 1 (13:03):
So in a couple of days, get on a flight,
go down to Mexico City, get behind the wheel of
a few different brands, and you just you your knowledge
of an understanding just goes from zero to one hundred completely.
Speaker 2 (13:15):
Yeah, It's it's like it's you cannot write about Paris
without going to Paris. So that's kind of the idea.
Speaker 1 (13:21):
Okay, there we go. Here's a tough one to say.
Toyota is the benchmark is a standard for quality around
the world even now today, making enormous profits very successful
company in so many markets. So if Toyota is let's
just say for fun, Toyota is a ten out of
ten in terms of quality in your experience driving And
(13:43):
I know it's early days too. We don't know the
long term reliability these cars, but just impressions driving them
for the first time. If Toyota's at ten, where would
you put Chinese brands like byd or Cherry up against that?
Speaker 2 (13:58):
Probably the way the would put it in the in
an eight still and that's because I have a doubt
of what's going to happen in the future. But but
but you know your initial sense by driving it, it
may be a ten also, but it's but it's the
way that they're there, they're landing. There's still early. I've
(14:20):
heard that all Chinese brands have had a very complicated
time in terms of post sales and parts of maintenance
because as you and I know this, this business of
the automotive businesses, you have to sell. It's not selling
just one car, selling three or four cars to the
same person. That's a real business. And that's what Toyota
(14:43):
does does very well because people are happy with service,
they're happy with a dealer, they feel like home and
so on. And this is what one thing that the
Chinese in this in this opportunity to understand what a
global company does and that they are not doing yet,
is understand how they can, you know, pamper their customers
(15:04):
towards the future. So I've heard of you know, not
so good reviews from clients that have crashed or have
had any problem with their vehicles in terms of getting
parts of parts.
Speaker 1 (15:18):
Yes, which reminds me. Let's circle back to just for
a moment. One highly controversial and confusing topic in recent
months has been a lot of people come to me
and say, oh my god, the Chinese are building so
many factories in Mexico. And another person going, no, there's
no fact Chinese factories in Mexico. So you're on the
scene there. What's the reality? Are there any Chinese manufacturers
(15:40):
today in Mexico.
Speaker 2 (15:42):
There's no manufacturing facility in Mexico. There's a small c
KD factory factory in central Mexico of Jack and they
have a co investment with Carl's Slim, you know, the
richest Mexican Yes.
Speaker 1 (15:59):
And make some commercial vehicles, is that right?
Speaker 2 (16:02):
The truck that's commercial commercial vehicles. They were planning on
doing something in the lower segment. But the aim, the
objective of my response is that the aim hasn't been
to flood the American market from Mexico, and that was said,
so no manufacturing facilities in Mexico. As a matter of fact,
the way they wanted to invest, I think it was
(16:23):
three billion in Mexico and they have postponed their plans.
And I think that's because of the pressures that Mexican
government is getting from US government.
Speaker 1 (16:34):
In that sense, you can beat on that, right, I
think so as you said prior to I think just
at the front end of COVID, for various reasons, Importugeese
on Chinese cars was zero, then a couple of years
ago was raised at twenty percent, then just recently lifted
again to fifty percent. Do you think that terror freight
(16:55):
is high enough? In other words, would it stop the
flood of Chinese cars coming in or the Chinese saying
so what we're still coming in?
Speaker 2 (17:03):
Well, we have mutual friends that say that that's not enough.
I don't think it's going to be enough because I think,
first of all, the strategy of the Chinese brands, unlike
what happens with the traditional brands is that it's a
strategy that it's aligned with its government number one. So
there's a long term view that they are thinking. We
(17:26):
don't care about profitability right now. We care. What we
care is that we can be dominant in a market.
And just for a reference of our audience. We don't
have manufactory facilities of Chinese vehicles here, but that doesn't
mean Mexico is the first country importing Chinese vehicles in
(17:47):
the world at this point in time. So I think
that that their their objective is not profit or profit fast.
I think they want the market share, and I think
this is this is not going to be too harmful
for their objectives. Maybe it'll filter some small Chinese brands
(18:07):
that had some illusions, but the big ones, I think
they're still okay.
Speaker 1 (18:13):
One of the things we saw in place like Australia
as recently in the UK is that it's the Japanese
brands that are coming under the most pressure. You mentioned
that Mexico when I was there in Mexico City is
so such an eye opener. You have cars from Italy,
from France, from the UK, from Germany, from Czechia, from Korea, Japan, China,
(18:34):
at the US, everywhere you've got such a so. But
I would have thought, I don't know why I would
have thought that European brands might be the first ones
to take the hit. What's it like in Mexico? Who
who's coming under pressure as the Chinese ramp up?
Speaker 2 (18:49):
There? Is it?
Speaker 1 (18:49):
Everybody?
Speaker 2 (18:51):
Not yet? I think Toyota has been the company that
has has has been less hit by brands, and that's
because of the segments where the Chinese companies entered into.
So I think the first, the first companies that have
been impacted have been Nissan, which is number one in
(19:12):
Mexico in terms of market share because the.
Speaker 1 (19:15):
Segments right this sign is number one exactly Okay.
Speaker 2 (19:19):
Big big tent, but they have their their market share
has gone from twenty two percent to seventeen percent in
the last five years. Wow. And then the other one
is General Motors. But this is very tricky because General
Motors is the first importer of Chinese made vehicles in Mexico.
(19:40):
Chinese brand obviously, but is the first importer of Chinese
Chinese made vehicles in Mexico.
Speaker 1 (19:47):
What are the implications of that. Let's talk about that
just for a second I read recently, I'm glad you
reminded me that four of the five best selling cheves
chevyes in Mexico are built in China by the joint
venture in which GM has fifty percent ownership. So in essence,
you could call it badge engineering. Actually the Chinese are
(20:07):
manufacturing Chevy's putting a its brand on there. How long
before the Chinese say we don't really need your brand,
thank you very much, we'll take the market. Is that
where this is going well?
Speaker 2 (20:19):
I think if you see the BW experience with their
presence in China, in the China market and the relevance
that they the company put in the Chinese market, and
then how fast they let them just drop, I think
there's a huge risk for every company that has a
partnership in China, but that you know, may be a
(20:41):
reality sooner rather than later. What's incredible from the general
motors standpoint of view is that they will not be
hit by the tariffs even though they have this Chinese
made cars, because there's a public policy in Mexico that
if you produce in Mexico, I need to have a
manufacturing production plant in Mexico. You can you know, a
(21:04):
proportion of what you're building you can bring without duties
into Mexico. Mmm, so they will be saved.
Speaker 1 (21:11):
Wow, that's a sweet deal for them.
Speaker 2 (21:13):
Yeah.
Speaker 1 (21:14):
So they may be subject to no duties coming in exactly.
M So there's alten almost an incentive for them to
kill themselves.
Speaker 2 (21:28):
Uh it's like a drug.
Speaker 1 (21:30):
Uh huh.
Speaker 2 (21:31):
This is like drugs. It's like like the incentives in
and become addicted.
Speaker 1 (21:36):
Let's let's be optimistic, just addicted to kill themselves, but
to get hooked on attacking. Okay, good, what else do?
Something you said early on really got my attention. And
this is so important for our listeners in America because
we're on an island here. You know, I live in
San Diego. I can walk across the border here and
(21:56):
there's a B y D dealership within a within a mile,
there's Chinese cars around, and we, as you said, we
don't see them, we don't touch them. But we US
and Canada areb But the only two countries left on
the planet, maybe I can't think of Japan has Chinese cars?
Now be why these in that Korea has Chinese cars
in there? So even some of the most protective marks
(22:17):
in the world have Chinese cars? How soon your prediction?
No one knows the future. How soon do you think
Chinese cars will find their ways into the US one
way or another.
Speaker 2 (22:27):
I think within five years, that's my prediction. And one
of the things that it's important, and I think it's
also an opportunity for dealer groups in the United States
is so they see the Mexican market as very far away,
but we are very alike and we could be kind
of a small lab for some of the dealer groups
that one on them understand how to handle the Chinese executives,
(22:49):
how to handle the Chinese ORMs to how they are
working or it's the future. So in that sense, I think,
you know some of them that might be thinking of
you know, this is coming at us, we might as
well learn. I think that's a great Mexico becomes a
great opportunity to do so in that sense.
Speaker 1 (23:07):
A great test bet. As you said, we've never found
ourselves in the position where the US is behind. Is
the one that doesn't have access to that product get
over there. You have a portfolio of dealerships across the
United States, maybe fifteen twenty fifty. Who knows public groups
even bigger you go, We're just going to take some
of our investment funds and we're going to put them
(23:27):
into place a couple bets in Mexico and at a
minimum will learn what it's like to work with the Chinese.
Speaker 2 (23:32):
Correct that is correct?
Speaker 1 (23:34):
Okay? Is now a good time for that? What's the
sense overall in the industry. You've been in the industry,
you're veteran, you've seen it as a leader at Toyota.
Do you think that there are openings for investors from
the United States to go buy dealerships in Mexico today?
Speaker 2 (23:50):
Don't? I don't think. Let me tell you that. I
think the dealer groups in Mexico are very close. It's
obvious and has happened in other places. The second thing
is that we don't have a franchise law, so that
allows OEMs to have, you know, to do whatever they
want in terms of selecting or not selecting dealers and
if you can change or not change, or you can sell.
(24:10):
And although I do I think those those things are
preventing or maybe may not may not be as attractive
to for dealer groups to come in. Those things may
change in the in the near future because of anti
trust laws. And anti trust changes in the Mexican industry. However,
what I would say is that I think because of
(24:31):
the amount of brands that are coming into our market,
they're starting to struggle in terms of finding appropriate representation.
We have we have, you know, we have one point
five million industry, so we have a limited number of groups,
traditional dealer groups, and those are you know, already occupied
by many of these brands. So yeah, so we're going
(24:53):
to get to a point in which finding representation is
going to be a challenge. Okay.
Speaker 1 (24:58):
Possibly another option could be the take a minority position
in an existing group, just like an investor would have
a portfolio, I'm going to invest, so I have a
view of what to expect when the Chinese do come.
Speaker 2 (25:09):
Correct. Although I thinks I'm a big believer that when
you want to do something and do business, you go
at it and you try to influence your way into it.
I think there's there has not been any hunger from
any big dealer group or any private fund or doing
so they want to do it. I think there's I mean,
(25:30):
there's a way to do it.
Speaker 1 (25:31):
Okay, very good, And if you were if you were
going to choose a city in Mexico to be at
the top of your list of places to look. What
city would that be?
Speaker 2 (25:41):
I think metropolitan areas would be the most relevant, meaning
obviously Mexico City, which is it would be difficult to
enter because this is the most priced in terms of volume, obviously,
But I think Monterey and what Alahada maybe, or Uebl
and Leon maybe cities where you could you know, you
(26:05):
could do a pretty good experiment.
Speaker 1 (26:06):
Which one has the best weather?
Speaker 2 (26:09):
I think probably Leon, puebl and Mexico City.
Speaker 1 (26:13):
Okay, that's food, Well that's very important too.
Speaker 2 (26:18):
Yeah, well, the best food. I would say it's a
general it's a general virtue of Mexico. But the weather
in Monterey is terrible as okay, very great Texas like
you know, very hot, very cold, very extremely all right.
Speaker 1 (26:35):
I won't tell our mutual friends about that. Moderate people
from very proud of their hometown.
Speaker 2 (26:42):
They are the.
Speaker 1 (26:44):
Last question for you, Luis, And it may or may
not be relevant, but people will often talk about China, Mexico,
us U s m c A is coming up as
I understand it, for review, what's the way forward? Do
you see it time in the future where USMCA says
we're fortress North America. We don't have any Chinese cars here,
(27:07):
or how does that get worked out? How do you
see that happening.
Speaker 2 (27:10):
I think we're you know, we're in a very relevant
situation right now because I think the traditional brands, and
when I meet traditional brands is those companies that have
already manufacturing facilities all around North America, including Mexico, Canada,
and the United States, and a supply base and a
value chain that has already been created. They are under
(27:33):
attack right now because of the US policy of having tariffs.
So right now the traditional industry is fighting with the
Chinese in some markets. And at the same time, I
bring tariffs to be able to sell in their own
turretor And so what I would like to see is
(27:54):
a North American alignment of the three governments saying how
do we strengthen and companies. We talked about the alignment
of the Chinese government and the brands to dominate. Well,
I think someone should be thinking of how do we
guarantee the success of the manufacturing industry of North America
(28:14):
for the future. But that's not happening at this point
in time. It's not happening. I think that so long
as there's President Trump remains in the administration. I think
it's going to be difficult for the Chinese to enter
into North America. I think that's what it's going to be,
one one, one renivent thing. But but as I said,
(28:35):
I think it's unstoppable at the end of the day,
and probably in the next administration will not be able
to to handle the pressure of the technology, the product,
the sexiness that you know that the Chinese brands are
bringing into the market.
Speaker 1 (28:53):
And they're not stopping, they're not slowing down. They're Louis said,
this has been absolutely extraordinary insights. So appreciative of your knowledge,
your experience, and your wisdom with regards you're seeing it.
You're right in the intersection right there in Mexico where
the Chinese are coming in and you can feel it firsthand. So,
first off, thank you for joining us today. And number two,
(29:17):
how do people get a hold of you? I'm sure
there's many listeners out there want to learn more from you.
Speaker 2 (29:22):
Well, thank you so much. Right now, I am reachable
at my email it's L L O M A D
R I D at gmail dot com.
Speaker 1 (29:33):
Is that a Madrid in there? Did I hear L? L? O.
Speaker 2 (29:36):
Madrid, old Madrid at gmail dot com. I'm in the
middle of right now of incorporating my new company, so
I don't have the official emails yet. Well I'll let
you know, of course. And it's been an absolute pleasure
as always to talk to you. Always admire your knowledge
(29:56):
of the industry and of Asia and particularly China, so
I always I always enjoy our conversation.
Speaker 1 (30:04):
Thank you so much. And I know our listeners after
hearing our conversation today are going to be very hungry
to learn more from you. I would like, Oh guy,
it's right on our doorstep here and we have a
huge blind spot, so let's go learn quickly because that
tsunami is coming our way and it's not going back. Yeah,
thank you again, Luis, we talked to Thank you. Take
(30:26):
care when you think about it. We're in a new
and strange situation where Chinese cars are sitting right there
on our doorstep, right there in Mexico, hundreds of thousands
of them. How soon will they find their way into
(30:48):
the US market? Three takeaways. One, Mexico has promised to
lift import tariffs to fifty percent, but who cares? That
might dent the momentum. But it's unlikely to stop Chinese
in Two, dealers in Mexico tell me when they tell
Louise that they're a little bit conflicted. There's fear of
missing out sitting right next to fear of getting burned
(31:11):
by the Chinese when it comes to business to market
areas and to abrupt changes in their agreements. And Third,
this is exciting. Louise is now organizing events at racetracks
near Mexico City. What for well investors and dealer groups
from America who would like to do their own test
drives of Chinese cars, Seeing and driving is believing. Hey,
(31:36):
I hope you enjoyed this episode of the Driving With
Done podcast. Send me a dm an email. What were
your ideas, your impressions. We love to hear from you.
I am Michael Dunn and this is the Driving with
Done podcast.
Speaker 2 (31:53):
Where you meet the experts creating the technologies that will
power tomorrow's cars electric autonomous software.
Speaker 1 (32:00):
To find This is the Driving with Done podcast.
Speaker 2 (32:04):
Thank you for joining this episode of the Driving with
Done podcast.
Speaker 1 (32:08):
To connect with Michael Donn, visit doninsights dot com or
find Michael on x or LinkedIn. This is the Driving
With Done Podcast.
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