The Struggle is Real: The Impact of Tariffs on American Automakers and Consumers
In recent years, the US government has implemented various measures to protect the American auto industry from foreign competition. One notable example is the "Chicken Tax," a 25% tariff imposed on all imported light trucks aimed at protecting jobs in the domestic automotive sector. This tax was enacted as an olive branch between the UAW, the Auto Workers Union, and the government, with the aim of safeguarding American auto industry jobs from foreign competition, such as the Volkswagen Type 2 bus. Interestingly, this tariff has remained in effect today, effectively keeping Volkswagen from selling trucks like the commercial version of the ID buzz in the US.
However, the real crux of this issue lies in the fact that many Chinese EV manufacturers are state-backed, receiving funding from the government to operate at a loss while continuing to grow. These government subsidies, combined with a heavily automated manufacturing process and lower auto worker wages in China, allow these automakers to undercut their American counterparts, posing a significant threat to the US automotive industry. The US government sees this as a threat, as how can one compete with companies that don't need to be profitable?
To understand the complexity of this issue, it's essential to look at the history of the Chinese car industry. While the first model T rolled off the assembly line in 1908, there was no car industry to speak of over in China. The country's car industry began to take shape in the 1950s with help from the Soviets, but it wouldn't truly begin in the free market sense until the 1990s. In 1994, the Chinese government designated the car industry as a pillar industry, essentially a sector that other industries can grow from. This designation was made to position China as a major player on the world stage, and with the country's centuries-long progress condensed into just a couple of decades, it's clear that this has been a significant gamble.
The Chinese government's decision to subsidize their car manufacturers is, in effect, a long-term investment in their automotive industry. By making cars artificially cheap, they're able to undercut American competitors and gain market share. The Tariff imposed on Chinese EVs is an attempt by the US government to level the playing field, but it's unclear whether this will be enough to stem the tide of foreign competition.
A recent drive in an Audi SUV revealed that even American buyers are starting to notice the rise of Chinese cars. A conversation with a driver who asked about the make and model of our vehicle led us to realize that Americans are indeed ready for Chinese cars, but perhaps not their manufacturers. The US automotive industry has been slow to respond to this shift in the market, leaving them vulnerable to foreign competition.
The implementation of tariffs on Chinese EVs is a complex issue, with some arguing that it's unfair to penalize American consumers for buying a car from a foreign manufacturer. However, others point out that the subsidies provided by the Chinese government allow their manufacturers to operate at a loss while continuing to grow and expand. The US government has imposed this tariff as an attempt to level the playing field, but it remains to be seen whether this will be enough to stem the tide of foreign competition.
In recent years, some Chinese EV manufacturers have gained significant traction in the US market. One notable example is the Neo, a company that has been around for almost 10 years and has refined its features over time. Despite the Tariff being imposed on their cars, the Neo's latest model feels surprisingly complete, with a solid foundation and impressive features. However, the sticker price of $140,000 would be out of reach for most American buyers, making it an expensive proposition.
As the US automotive industry continues to navigate this complex landscape, one thing is clear: the game has changed. The Tariff imposed on Chinese EVs marks a new era in global competition, and Detroit will need to adapt quickly if they hope to remain competitive. Will American manufacturers find a way to build factories in North America or other countries, like Michigan? Only time will tell. For now, it's clear that the US automotive industry needs to get its act together – and fast – if they want to stay ahead of the curve.
 
                     
                    
                        WEBVTTKind: captionsLanguage: enwhen you think of Chinese cars you  probably think of this right what you  probably don't think of is this the Neo  es8 it's a luxury SUV that could be  coming to American roads sooner than you  think today we're going to drive one of  the first Chinese cars in the US does  this car stand a chance of breaking into  the US market is it worth the  $70,000 price tag has China cracked a  Cod on giving American buyers what they  want this car is a big big deal so let's  get right into it welcome to Donut so  this is it Jimmy the Neo es8 wow it's uh  a little big I do like I do like the  headlights a lot they're very s a lot of  thought went into the aerodynamics  making this thing as efficient as  possible going down the road something  interesting you'll notice the camera  pods up top yeah a lot of cameras on  this looking at it from the side Jimmy I  like the side profile view I actually  really like the rear of the car though I  love how it comes down a little bit more  kind of reminds me of a Range Rover a  little bit back here we got another  camera pod up top again this thing's how  many cameras is that eight now we got  two I think 11 total cameras that's  that's a lot of cameras overall I think  it's a pretty good looking car  especially compared to some other new EV  SUVs that we've driven in the past which  did not do it for me this I think it it  looks good yeah I love the tail light  too it so cool that's really hot right  now and I think it looks pretty good on  this guy Jimmy how what do you say we  get in the car and check it  out who's this guy we'll get to that get  to that in a sec follows a lot of trends  that are hot right now NS a minimalist  interior big touchcreen in the middle  however there are a lot of touches in  here that are I would say pretty unique  and an interesting look into what is  considered luxurious in the Chinese  market which I think we should get into  first of all this shifter here very cool  I like the shifter a lot me too I've got  a little trick for you here Jimmy do you  want to relax Jimmy oh this is I think  you need to relax dude yeah I think I  need a massage now oh this oh that can I  can do that are you relaxing now Jimmy  oh I'm so relaxed right now I don't  think you're quite relaxed enough dude  let's put you in in zero gravity  mode this is what it feels like on the  space station right yeah I think so take  a little uh nap here dude it's all about  just me today  yeah so yeah there are massage seats in  the front and the middle rows which is  pretty cool where are the cup holders so  do have two cup holders here they're  right there Jimmy Boom I don't think  they're big enough for us yeah they're  not going to be big enough for a large  no Sprite so we got a suede headliner  here feels nice the other touch points I  like the wood the woods cool they feel  good enough M I think ooh yeah that  opens both ways dual way cubby isn't  that interesting that is interesting  yeah this thing cost  $70,000 70,000 and they are aiming for  BMW and Mercedes customers with this now  granted this is an electric vehicle  those are naturally going to be more  expensive and other cars in this price  range we're talking rivan r1s and then  also the Chevy Taho is also in that  range you could get that yeah so that's  kind of like the pool that this thing is  swimming in M I think we got to go in  the back though yeah to really to get  the full picture of this thing so this  section right here these these seats are  where I think it starts to become more  apparent that this is not an American or  European car there are some features I  think are kind of like unique to the  Chinese market these captain seats they  have massage a massage function which is  awesome okay that's that's nice but also  there's this like cool touches like the  cup holder here that's hidden in the  armrest I don't know why that's so cool  to me but I I love it that is really  cool it's just neat it just it it does  feel different you know we got a little  cubby here but also your USBC right here  I don't know there's just something  about it about this design it's thinking  of everyone in the car we also have some  controls down here we can control our  climate we can control the music in the  car from this touchcreen back here all  right you can control the passenger seat  in front of you if you feel like you  don't have enough room Jimmy okay front  passenger seat  collaps so overall Jimmy I think like  the materials like the  leather that's the seat here I'm not  sure what this material is it just  doesn't feel quite like a $70,000 car I  will say the leather does feel a lot  little to be desired there are some very  interesting ideas in here that I think  other cars in that same price category  don't have this is my Millennium edition  Ford F250 and currently it sounds like a  sad  walrus so embarrassed but with help from  today's sponsor borla I'm about to get  this thing roaring like a  beast this is borla's R&D facility where  some of the best exhaust systems in the  world world are developed and while the  engineers are getting to work on my  custom exhaust for my truck I'm going to  give you guys a little behind the-  scenes look with Mr borla himself David  what's up man how you doing good to see  you again see you thanks for coming okay  so this is your R&D facility but you  manufacture at a separate site yeah we  have a big Factory in Tennessee where we  do all of our manufacturing so the  products that go to end users are  manufactured in Tennessee and designed  here in California made in the good old  USA 100% made in the USA what is the  process of getting that correct sound in  this R&D facility really we concentrate  a lot on what doesn't sound good cu the  majority of what we're doing is really  tuning out the stuff that doesn't sound  good and then we have our own technology  to to amplify sounds and I know enough  about music to know how chords are made  like on a guitar like a power chord  right so we use the same formulas to  create those notes from Organ Pipe  technology in our exhaust so it's it's  it's very similar to playing a chord on  guitar Automotive  musicians zoraa is the real deal I want  to thank David and everyone else here  for showing me around and taking care of  my F250 back there if you guys want your  own exhaust system click the link below  you won't regret it so we're going to  drive this thing in a sec but let's talk  about why this car is here in the first  place Chinese cars haven't been sold in  us but trust me back in China business  is booming last year China overtook  Japan as the world's largest Automotive  exporter at 5 million units shipped  globally most of those cars went over to  Europe but now models like this es8 are  poised to be sold in the US but will  American buyers even want them will we  even be able to afford them well there's  a very big asterisk that changes the  answer to those questions but we're  going to get to that later first who the  heck is Neo Neo is a premium eveve brand  that was founded in 2014 in Shanghai  China you might have seen their ep9  superar on The Grand Tour but they do a  lot more than that Neo has a  self-proclaimed focus on technology and  luxury their most affordable car the et5  starts at around $41,000 us which for  reference is more expensive than Tesla's  model 3 and like I've mentioned the es8  costs even more around  $70,000 something that might be adding  to that price tag is no me the onboard  smart driver interface which Neo claims  is the first mass production incar AI  system let's see how it  works that that is Nomi he's looking at  me saying hi yes giving you cute little  eyes I love that Neo brought this to  Market in 2017 so they've been working  on for a long time now it has a fair  amount of features let's see if they  work hey Nomi hey could you close the  windows okay all right so this is a  Chinese market vehicle this exact car  exact arrived here a few days ago okay  it only speaks Mandarin this one but  luckily we have another Neo model in the  parking lot that does understand English  so let's use that one to test the system  cool Sorry know me in this car we're  going to speak English to your brother  or  sister this is the Neo et5 it's a sedan  and this is a European spec model so it  does speak English okay let's get inside  yeah let's check it out hello little  gomi how's it going I am here whoa we're  here too hey Nomi hello can you roll my  window down all the way  hey Nomi yes could you tell me a joke  what did one ocean say to the other  ocean nothing they just waved ah classic  That Old Chestnut nice love that one hey  Nomi can you recline my seat would you  mind rephrasing it could you put the  passenger seat into relaxed position  didn't catch that could you repeat it's  not okay um hey Nomi yes put passenger  seat in relax position I don't  understand you okay please say that  again okay so it's  not it's not the best no look if we're  going to have ai systems in our car that  are listening to us and watching us I  got to say having a little robotic face  that looks at us and plays Maracas and a  guitar When the Music's playing that's  pretty cute it is I think more car  companies need something like that yeah  put a a cute face on it yeah and I'm  fine your girlfriend will think that's  cool oh yeah it reminds me of like uh  that's your Archer detail that's my  little R2D2 we should take the es8 out  then for a drive yeah yeah that was fun  all right bye n  me all right first time out in the es8  on the streets of Los Angeles we're in  Downtown LA all right Jimmy 643  horsepower 0 to 62 mph and 4.1 seconds  I'm in Sport Plus mode that's a lot of  electric ponies noan let's do it that  guy in the Tesla was checking it out got  smoke his ass  wa oh oh I felt my breakfast this  morning that's fast dude I'll put this  thing back in Comfort mode when we were  looking at the car in the parking lot I  was kind of skeptical honestly but so  far it feels pretty good I'm pretty  happy with it so far it's got air  suspension yeah rides so nice the ride  is pretty good dude honestly on these  crappy La roads like like I know it's  pretty comfortable the window double pan  glass it's been keeping all the road  noise out you might be wondering who  that is in the back seat while Neo told  us we couldn't drive the car without a  rep riding with us if it sounds strange  that a manufacturer demand we take  someone along for the ride that's  because it is it was extremely awkward  you could see him as a literal  representation of Neo's unfamiliarity  with the American Automotive press or as  a more ethereal analogy for something  else that's your call but I will say was  a nice guy things I don't like off the  bat the insistence of every EV company  to imitate Tesla in just their very  complicated menus like I have to go  through two menus to adjust the mirrors  it's like all right why are we doing  that yeah just be one thing that's the  way that Teslas are and like Teslas are  seen as a status symbol then people want  the weirdness that comes with that I  guess all right Nolan I think we need to  charge this thing yeah let's get some  juice yeah    so eeve charging stations are certainly  nothing new in fact they're a fact of  life here in Southern California in La  there might be more kids that know how  to charge their mom's Tesla than use a  gas pump however this es8 can do things  a little differently so over in China  Neo is really big into battery swapping  technology or batteries as a service and  this is exactly what it sounds like you  swap out a depleted battery for a fully  charged one kind of like my RC car  exactly Jimmy the process is significant  ly faster than charging and there are  currently 2300 battery swapping stations  that's a lot however they're only  available in Europe and China there have  been a few attempts at making battery  swaps a thing here in the US even Tesla  tried it back in 2013 but honestly Jimmy  I don't know if swaps will ever become  mainstream here because 45% of EV owners  prefer to charge at home and have the  capability to do so but the story is a  little different back in China where 6.8  million charging points have to serve a  population of 1.4  billion people Jimmy M that's a lot and  in a world where the fastest charge can  take around 20 minutes you can save a  lot of collective time with the battery  swap that takes just half the time so I  mean does battery swapping make sense in  the US not really is it interesting yeah  it is all right Jimmy we're good to go  let's get back on the road how about you  drive oh yeah gladly all  right oh this is uh this is definitely  not a Miata today is an all new  experience for me so Jimmy you've driven  a few EVS a few you're not a huge EV  head no I am definitely not so how do  you feel driving right now I feel like  I'm driving a big golf cart okay that's  pretty EV typical I would say but I do  like this it's very comfortable I mean  you don't hear any road noise most of  the cars I drive have a ton of road  noise well that's cuz you buy  30-year-old Japanese cars yeah with no  sound deadening at all right you know  you know let bygones be bygones you know  but this I feel like I could take my  girlfriend out in this and she would be  very impressed dude we haven't even  talked about the sound system it's got  Dolby Atmos that yeah that's a crazy  unit it's got over 23 speakers on board  it sounds great I I like has a lot of  punch and that's what's cool about these  VG engines they were super overbuilt hey  do you think the turbo is the adrenaline  gland of the car engine is the heart oil  is the blood are the drive shafts the  legs or is it the axles it's the axles  but I'm willing to admit the bumper the  but if you admit that the CV joint is  the  KNE hey just so you know the meeting was  canceled amazing the tailpipe is the  butthole anyway during the late 9s  Nissan along every  other you know for $70,000 I I think  some things need to be improved here  there which brings me to something we  haven't mentioned yet what's that the  terar    tariffs yes Jimmy tariffs Uncle Sam  announced he'd be increasing taxes on  EVS of Chinese origin from 25% to 100%  effectively doubling the cost of cars  like the esa tariffs are nothing new  back in the early' 60s Lynden B Johnson  needed support from the UAW the Auto  Workers Union to pass the Civil Rights  Act of 1964 as an olive branch of the  Union the government instituted the now  Famous Chicken tax a 25% tax on all  imported light trucks aimed at  protecting American Auto industry jobs  from foreign competition like the  Volkswagen Type 2 bus it remains in  effect today ironically keeping  Volkswagen from selling trucks like the  commercial version of the ID buzz in the  US today this whopping 100% tax on  Chinese EVS is designed to do pretty  much the same thing making it more  expensive for American consumers to buy  cars like this one but why well the real  Crux of this issue is that many Chinese  EV manufacturers are State back meaning  they received funding from the  government allowing them to operate at a  loss while continuing to grow these  government subsidies along with a  heavily automated manufacturing process  and lower Auto worker wages over in  China allow these automakers to undercut  their American counterparts the US  government sees that as a threat I mean  how do you compete with companies that  don't need to be profitable let's put  things into perspective while the first  Model T rolled off the assembly line in  1908 there was no car industry to speak  of over in China the country's car  industry was start percolating in the  1950s with help from the Soviets but  wouldn't truly begin in the free market  sense until the 1990s the reasons for  this delay are truly fascinating and  Incredibly complex and let's be honest  I'm a YouTuber who likes to do burnouts  so we both know I'm not qualified to get  into all that but what you do need to  know is that in 1994 the Chinese  government designated the car industry  as a pillar industry basically a sector  that other Industries can grow from like  Metallurgy or Electronics if China  wanted the top spot bought on the world  stage a car industry was necessary but  they had to make a centuries worth of  progress in just a couple decades and if  this car has any  indication kind of worked but if you can  subsidize an entire industry so you can  undercut your competition until there  aren't any left does that really count  frankly I don't know if it matters in  the end power is power and China's  subsidies are bankrolling their  manufacturers gamble in the US and the  Tariff is Uncle Sam calling their Bluff  I will say feels complete you know we've  driven some I I'm going back to the  vinfast I'm sorry that was a Half Baked  product that's because it was rushed to  Market you know it felt like we were  driving a prototype this does not feel  that way no this feels very complete  Neo's been around for a while now almost  10 years you know Nomi has been on the  market since 2017 so they've had time to  refine their features make the cars  better and this feels light years ahead  of something like a VIN fast so I think  it's almost there the bones are good the  bones are very good they've had a lot of  milk okay you know now we got to grow  the muscle that's true that's true I'm  going to be straight with you I didn't  expect this car to be good and with the  Tariff now in play this thing would cost  you  $140,000 and it's not worth that but I'm  still impressed this thing isn't  mindblowing but it's clearly competent  we asked if America is ready for Chinese  cars now this is an anecdote but a guy  in an Audi SUV yesterday had us roll  down our Windows to ask us what we were  driving I told him it was a Neo and from  China and he said it looked very nice I  think American buyers are ready for  Chinese cars but I don't know if  American companies are ready for Chinese  cars I pray that Detroit is using the  time the tariffs just bought them to get  their ass in gear the Chinese companies  like Neo they're going to find a way to  sell their cars in the US without the  tax like building factories in North  America heck even Michigan it could  happen but if there's a Chinese EV  selling like hot cakes in the US in 5  years I'm not going to blame China I'm  not going to blame the people buy them  I'm going to blame Detroit for failing  to act this car is good Detroit clock's  ticking let's get going all right thanks  for watchingwhen you think of Chinese cars you  probably think of this right what you  probably don't think of is this the Neo  es8 it's a luxury SUV that could be  coming to American roads sooner than you  think today we're going to drive one of  the first Chinese cars in the US does  this car stand a chance of breaking into  the US market is it worth the  $70,000 price tag has China cracked a  Cod on giving American buyers what they  want this car is a big big deal so let's  get right into it welcome to Donut so  this is it Jimmy the Neo es8 wow it's uh  a little big I do like I do like the  headlights a lot they're very s a lot of  thought went into the aerodynamics  making this thing as efficient as  possible going down the road something  interesting you'll notice the camera  pods up top yeah a lot of cameras on  this looking at it from the side Jimmy I  like the side profile view I actually  really like the rear of the car though I  love how it comes down a little bit more  kind of reminds me of a Range Rover a  little bit back here we got another  camera pod up top again this thing's how  many cameras is that eight now we got  two I think 11 total cameras that's  that's a lot of cameras overall I think  it's a pretty good looking car  especially compared to some other new EV  SUVs that we've driven in the past which  did not do it for me this I think it it  looks good yeah I love the tail light  too it so cool that's really hot right  now and I think it looks pretty good on  this guy Jimmy how what do you say we  get in the car and check it  out who's this guy we'll get to that get  to that in a sec follows a lot of trends  that are hot right now NS a minimalist  interior big touchcreen in the middle  however there are a lot of touches in  here that are I would say pretty unique  and an interesting look into what is  considered luxurious in the Chinese  market which I think we should get into  first of all this shifter here very cool  I like the shifter a lot me too I've got  a little trick for you here Jimmy do you  want to relax Jimmy oh this is I think  you need to relax dude yeah I think I  need a massage now oh this oh that can I  can do that are you relaxing now Jimmy  oh I'm so relaxed right now I don't  think you're quite relaxed enough dude  let's put you in in zero gravity  mode this is what it feels like on the  space station right yeah I think so take  a little uh nap here dude it's all about  just me today  yeah so yeah there are massage seats in  the front and the middle rows which is  pretty cool where are the cup holders so  do have two cup holders here they're  right there Jimmy Boom I don't think  they're big enough for us yeah they're  not going to be big enough for a large  no Sprite so we got a suede headliner  here feels nice the other touch points I  like the wood the woods cool they feel  good enough M I think ooh yeah that  opens both ways dual way cubby isn't  that interesting that is interesting  yeah this thing cost  $70,000 70,000 and they are aiming for  BMW and Mercedes customers with this now  granted this is an electric vehicle  those are naturally going to be more  expensive and other cars in this price  range we're talking rivan r1s and then  also the Chevy Taho is also in that  range you could get that yeah so that's  kind of like the pool that this thing is  swimming in M I think we got to go in  the back though yeah to really to get  the full picture of this thing so this  section right here these these seats are  where I think it starts to become more  apparent that this is not an American or  European car there are some features I  think are kind of like unique to the  Chinese market these captain seats they  have massage a massage function which is  awesome okay that's that's nice but also  there's this like cool touches like the  cup holder here that's hidden in the  armrest I don't know why that's so cool  to me but I I love it that is really  cool it's just neat it just it it does  feel different you know we got a little  cubby here but also your USBC right here  I don't know there's just something  about it about this design it's thinking  of everyone in the car we also have some  controls down here we can control our  climate we can control the music in the  car from this touchcreen back here all  right you can control the passenger seat  in front of you if you feel like you  don't have enough room Jimmy okay front  passenger seat  collaps so overall Jimmy I think like  the materials like the  leather that's the seat here I'm not  sure what this material is it just  doesn't feel quite like a $70,000 car I  will say the leather does feel a lot  little to be desired there are some very  interesting ideas in here that I think  other cars in that same price category  don't have this is my Millennium edition  Ford F250 and currently it sounds like a  sad  walrus so embarrassed but with help from  today's sponsor borla I'm about to get  this thing roaring like a  beast this is borla's R&D facility where  some of the best exhaust systems in the  world world are developed and while the  engineers are getting to work on my  custom exhaust for my truck I'm going to  give you guys a little behind the-  scenes look with Mr borla himself David  what's up man how you doing good to see  you again see you thanks for coming okay  so this is your R&D facility but you  manufacture at a separate site yeah we  have a big Factory in Tennessee where we  do all of our manufacturing so the  products that go to end users are  manufactured in Tennessee and designed  here in California made in the good old  USA 100% made in the USA what is the  process of getting that correct sound in  this R&D facility really we concentrate  a lot on what doesn't sound good cu the  majority of what we're doing is really  tuning out the stuff that doesn't sound  good and then we have our own technology  to to amplify sounds and I know enough  about music to know how chords are made  like on a guitar like a power chord  right so we use the same formulas to  create those notes from Organ Pipe  technology in our exhaust so it's it's  it's very similar to playing a chord on  guitar Automotive  musicians zoraa is the real deal I want  to thank David and everyone else here  for showing me around and taking care of  my F250 back there if you guys want your  own exhaust system click the link below  you won't regret it so we're going to  drive this thing in a sec but let's talk  about why this car is here in the first  place Chinese cars haven't been sold in  us but trust me back in China business  is booming last year China overtook  Japan as the world's largest Automotive  exporter at 5 million units shipped  globally most of those cars went over to  Europe but now models like this es8 are  poised to be sold in the US but will  American buyers even want them will we  even be able to afford them well there's  a very big asterisk that changes the  answer to those questions but we're  going to get to that later first who the  heck is Neo Neo is a premium eveve brand  that was founded in 2014 in Shanghai  China you might have seen their ep9  superar on The Grand Tour but they do a  lot more than that Neo has a  self-proclaimed focus on technology and  luxury their most affordable car the et5  starts at around $41,000 us which for  reference is more expensive than Tesla's  model 3 and like I've mentioned the es8  costs even more around  $70,000 something that might be adding  to that price tag is no me the onboard  smart driver interface which Neo claims  is the first mass production incar AI  system let's see how it  works that that is Nomi he's looking at  me saying hi yes giving you cute little  eyes I love that Neo brought this to  Market in 2017 so they've been working  on for a long time now it has a fair  amount of features let's see if they  work hey Nomi hey could you close the  windows okay all right so this is a  Chinese market vehicle this exact car  exact arrived here a few days ago okay  it only speaks Mandarin this one but  luckily we have another Neo model in the  parking lot that does understand English  so let's use that one to test the system  cool Sorry know me in this car we're  going to speak English to your brother  or  sister this is the Neo et5 it's a sedan  and this is a European spec model so it  does speak English okay let's get inside  yeah let's check it out hello little  gomi how's it going I am here whoa we're  here too hey Nomi hello can you roll my  window down all the way  hey Nomi yes could you tell me a joke  what did one ocean say to the other  ocean nothing they just waved ah classic  That Old Chestnut nice love that one hey  Nomi can you recline my seat would you  mind rephrasing it could you put the  passenger seat into relaxed position  didn't catch that could you repeat it's  not okay um hey Nomi yes put passenger  seat in relax position I don't  understand you okay please say that  again okay so it's  not it's not the best no look if we're  going to have ai systems in our car that  are listening to us and watching us I  got to say having a little robotic face  that looks at us and plays Maracas and a  guitar When the Music's playing that's  pretty cute it is I think more car  companies need something like that yeah  put a a cute face on it yeah and I'm  fine your girlfriend will think that's  cool oh yeah it reminds me of like uh  that's your Archer detail that's my  little R2D2 we should take the es8 out  then for a drive yeah yeah that was fun  all right bye n  me all right first time out in the es8  on the streets of Los Angeles we're in  Downtown LA all right Jimmy 643  horsepower 0 to 62 mph and 4.1 seconds  I'm in Sport Plus mode that's a lot of  electric ponies noan let's do it that  guy in the Tesla was checking it out got  smoke his ass  wa oh oh I felt my breakfast this  morning that's fast dude I'll put this  thing back in Comfort mode when we were  looking at the car in the parking lot I  was kind of skeptical honestly but so  far it feels pretty good I'm pretty  happy with it so far it's got air  suspension yeah rides so nice the ride  is pretty good dude honestly on these  crappy La roads like like I know it's  pretty comfortable the window double pan  glass it's been keeping all the road  noise out you might be wondering who  that is in the back seat while Neo told  us we couldn't drive the car without a  rep riding with us if it sounds strange  that a manufacturer demand we take  someone along for the ride that's  because it is it was extremely awkward  you could see him as a literal  representation of Neo's unfamiliarity  with the American Automotive press or as  a more ethereal analogy for something  else that's your call but I will say was  a nice guy things I don't like off the  bat the insistence of every EV company  to imitate Tesla in just their very  complicated menus like I have to go  through two menus to adjust the mirrors  it's like all right why are we doing  that yeah just be one thing that's the  way that Teslas are and like Teslas are  seen as a status symbol then people want  the weirdness that comes with that I  guess all right Nolan I think we need to  charge this thing yeah let's get some  juice yeah    so eeve charging stations are certainly  nothing new in fact they're a fact of  life here in Southern California in La  there might be more kids that know how  to charge their mom's Tesla than use a  gas pump however this es8 can do things  a little differently so over in China  Neo is really big into battery swapping  technology or batteries as a service and  this is exactly what it sounds like you  swap out a depleted battery for a fully  charged one kind of like my RC car  exactly Jimmy the process is significant  ly faster than charging and there are  currently 2300 battery swapping stations  that's a lot however they're only  available in Europe and China there have  been a few attempts at making battery  swaps a thing here in the US even Tesla  tried it back in 2013 but honestly Jimmy  I don't know if swaps will ever become  mainstream here because 45% of EV owners  prefer to charge at home and have the  capability to do so but the story is a  little different back in China where 6.8  million charging points have to serve a  population of 1.4  billion people Jimmy M that's a lot and  in a world where the fastest charge can  take around 20 minutes you can save a  lot of collective time with the battery  swap that takes just half the time so I  mean does battery swapping make sense in  the US not really is it interesting yeah  it is all right Jimmy we're good to go  let's get back on the road how about you  drive oh yeah gladly all  right oh this is uh this is definitely  not a Miata today is an all new  experience for me so Jimmy you've driven  a few EVS a few you're not a huge EV  head no I am definitely not so how do  you feel driving right now I feel like  I'm driving a big golf cart okay that's  pretty EV typical I would say but I do  like this it's very comfortable I mean  you don't hear any road noise most of  the cars I drive have a ton of road  noise well that's cuz you buy  30-year-old Japanese cars yeah with no  sound deadening at all right you know  you know let bygones be bygones you know  but this I feel like I could take my  girlfriend out in this and she would be  very impressed dude we haven't even  talked about the sound system it's got  Dolby Atmos that yeah that's a crazy  unit it's got over 23 speakers on board  it sounds great I I like has a lot of  punch and that's what's cool about these  VG engines they were super overbuilt hey  do you think the turbo is the adrenaline  gland of the car engine is the heart oil  is the blood are the drive shafts the  legs or is it the axles it's the axles  but I'm willing to admit the bumper the  but if you admit that the CV joint is  the  KNE hey just so you know the meeting was  canceled amazing the tailpipe is the  butthole anyway during the late 9s  Nissan along every  other you know for $70,000 I I think  some things need to be improved here  there which brings me to something we  haven't mentioned yet what's that the  terar    tariffs yes Jimmy tariffs Uncle Sam  announced he'd be increasing taxes on  EVS of Chinese origin from 25% to 100%  effectively doubling the cost of cars  like the esa tariffs are nothing new  back in the early' 60s Lynden B Johnson  needed support from the UAW the Auto  Workers Union to pass the Civil Rights  Act of 1964 as an olive branch of the  Union the government instituted the now  Famous Chicken tax a 25% tax on all  imported light trucks aimed at  protecting American Auto industry jobs  from foreign competition like the  Volkswagen Type 2 bus it remains in  effect today ironically keeping  Volkswagen from selling trucks like the  commercial version of the ID buzz in the  US today this whopping 100% tax on  Chinese EVS is designed to do pretty  much the same thing making it more  expensive for American consumers to buy  cars like this one but why well the real  Crux of this issue is that many Chinese  EV manufacturers are State back meaning  they received funding from the  government allowing them to operate at a  loss while continuing to grow these  government subsidies along with a  heavily automated manufacturing process  and lower Auto worker wages over in  China allow these automakers to undercut  their American counterparts the US  government sees that as a threat I mean  how do you compete with companies that  don't need to be profitable let's put  things into perspective while the first  Model T rolled off the assembly line in  1908 there was no car industry to speak  of over in China the country's car  industry was start percolating in the  1950s with help from the Soviets but  wouldn't truly begin in the free market  sense until the 1990s the reasons for  this delay are truly fascinating and  Incredibly complex and let's be honest  I'm a YouTuber who likes to do burnouts  so we both know I'm not qualified to get  into all that but what you do need to  know is that in 1994 the Chinese  government designated the car industry  as a pillar industry basically a sector  that other Industries can grow from like  Metallurgy or Electronics if China  wanted the top spot bought on the world  stage a car industry was necessary but  they had to make a centuries worth of  progress in just a couple decades and if  this car has any  indication kind of worked but if you can  subsidize an entire industry so you can  undercut your competition until there  aren't any left does that really count  frankly I don't know if it matters in  the end power is power and China's  subsidies are bankrolling their  manufacturers gamble in the US and the  Tariff is Uncle Sam calling their Bluff  I will say feels complete you know we've  driven some I I'm going back to the  vinfast I'm sorry that was a Half Baked  product that's because it was rushed to  Market you know it felt like we were  driving a prototype this does not feel  that way no this feels very complete  Neo's been around for a while now almost  10 years you know Nomi has been on the  market since 2017 so they've had time to  refine their features make the cars  better and this feels light years ahead  of something like a VIN fast so I think  it's almost there the bones are good the  bones are very good they've had a lot of  milk okay you know now we got to grow  the muscle that's true that's true I'm  going to be straight with you I didn't  expect this car to be good and with the  Tariff now in play this thing would cost  you  $140,000 and it's not worth that but I'm  still impressed this thing isn't  mindblowing but it's clearly competent  we asked if America is ready for Chinese  cars now this is an anecdote but a guy  in an Audi SUV yesterday had us roll  down our Windows to ask us what we were  driving I told him it was a Neo and from  China and he said it looked very nice I  think American buyers are ready for  Chinese cars but I don't know if  American companies are ready for Chinese  cars I pray that Detroit is using the  time the tariffs just bought them to get  their ass in gear the Chinese companies  like Neo they're going to find a way to  sell their cars in the US without the  tax like building factories in North  America heck even Michigan it could  happen but if there's a Chinese EV  selling like hot cakes in the US in 5  years I'm not going to blame China I'm  not going to blame the people buy them  I'm going to blame Detroit for failing  to act this car is good Detroit clock's  ticking let's get going all right thanks  for watching