Automakers focus on the global market, chide the US over tariffs at Shanghai's auto show
SHANGHAI (AP) — Booths of big Chinese, German and Japanese automakers were bustling at Shanghai's auto show this week as the industry kept its focus on a wider global market not subject to steep U.S. tariffs on imports of cars and auto parts.
Signs are that U.S. President Donald Trump's 25% tariffs on auto imports is causing companies to recalibrate their strategies, and in some cases find new opportunities.
'When governments up above are at odds, it's going to impact the businesses down below,' said Ma Lihua, general manager at Soling, a Chinese maker of domain control units and other electronics used in such things as rearview camera displays.
Soling, headquartered in Shanghai, counts Ford Motor Co., Toyota Motor Corp. and many other top tier global and Chinese automakers among its customers. It's also setting up a manufacturing base in Vietnam, whose local electric vehicle maker VinFast has ambitions to become Southeast Asia's leading automaker.
Many of the dozens of auto parts and components companies exhibiting at the Shanghai auto show have operations spanning both the Chinese and world markets.
Metal components maker Gestamp, a supplier of chassis, battery boxes and other key auto parts, has suffered from a slowdown in the U.S. and western European markets but is expanding in Asia, Latin America and Eastern Europe.
The tariffs are now an added complication, as automakers watch to see what comes.
'In the past, supply chains usually would run like Swiss clockwork, but now it's the opposite,' Ernesto Barcelo, chief ESG officer for Gestamp, said of the uncertainty now dominating the market.
"The lack of stability now, it's something very ... fluffy," Barcelo said.
A fundamental criteria for investing in any market is political stability, Wei Jianjun, chairman of GWM, or Great Wall Motor Co., told reporters when asked about his company's plans to expand manufacturing overseas. That applies to countries like Hungary, where the company has not yet decided on whether to build a factory, he said, but also to the United States under Trump.
'If a country is not politically stable, it's very risky,' said Wei, who also goes by the name Jack Wey.
With U.S. tariffs so high, GWM can focus elsewhere, such as on trade between China and Europe, which is bound to grow, he said. He didn't address the tariffs of up 45.3% that the EU has imposed on electric vehicles made in China.
Tianshu Xin, CEO of Leapmotor International, a joint venture of Stellantis and China's Leapmotor, said the U.S. market wasn't its first focus.
Now, 'we want to monitor the regulatory environment, and also customer preferences are slightly different compared with other markets," Xin said.
Japan's Nissan plans to launch 10 new EVs in China by 2027, nine of them its own brand, and to spend an extra $1.4 billion by the end of 2026 on its expansion there. In the U.S. it has the option to ramp up its spare capacity to make up for reduced imports due to the tariffs.
'Some doors have been shut, but others have been opened,' Ma said. 'But any plan you make you will change it very quickly. The market changes very quickly.'
Apart from higher tariffs, automakers and suppliers also must contend with national security restrictions that are an increasingly important factor in auto electronics.
Wuhan Kotei Informatics, which provides software for autonomous driving, adapted its business model to cope with sanctions. Now the company based in central China's Wuhan acts as a consultant and allows foreign customers to adapt software to local requirements, said Ye Xiongfei, general manager for the company's autonomous driving division.
'It's like I teach you how to walk if you don't know how to walk, and I will help you walk if you aren't able to walk,' Ye said.
Some restrictions on technology are understandable, but too many 'will hurt the innovation of the U.S. itself, hindering the speed of the development of their supply chains if it tries to only use local companies,' he said.
Some attending the show said they believe that ultimately Trump will end up softening his stance.
'Trump is a businessman and he hopes to boost the U.S. economy by imposing tariffs on other countries, but I do believe those measures are temporary,' said Yang Jingdi, assistant to the CEO of LvXiang Automobile Parts Co., which makes electronics including rearview mirrors and pumps.
'We'll wait and see,' he said. 'China has full and abundant supply chains and it is the U.S. that won't hold on if the tariff measures from both sides remain unchanged.'
AOD Technology, which makes domain control units that process various commands such as opening doors and controlling running boards on SUVs, was displaying a bare-bones version of Tesla's Cybertruck equipped with its devices — evidence of its ambition to eventually sell to the EV maker.
It might not be the best time to be planning on selling such components to a U.S. automaker for production in America, Claire Deng, a senior sales manager, conceded.
But she said AOD, based in south China's Zhongshan, had bought the Cybertruck as part of a process that can take years, developing what's needed to become a supplier.
'Who knows what will happen,' she said. 'We want to be ready.'
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News By Montreal's the Ritz-Carlton was launched with quite the bang on New Year's Eve in 1912, and the party has yet to stop at this ever-chichi Golden Mile institution more than a century later. The Ritz's Royal Suite was also inaugurated that soirée following the bash, and while there's nothing official about who bedded down there then, speculation is that it was some prominent captain of industry. But the suite, although altered over the years, has since drawn more than its fair share of regal figures — among them, Queen Elizabeth II and family — as well as heads of state and noted dignitaries from around the planet. But come the annual Canadian Grand Prix here — this year taking place June 13-15 at Circuit Gilles-Villeneuve — it has hosted another kind of royalty: top-tier F1 drivers, high-end Hollywood celebs and CEOs, as they are among the precious few able to pony up its $18,000-a-night cost — with a four-night minimum. Of course, this is no run-of-the-mill suite. Spread over 4,700 square feet, this mini-palace features one principal bedroom, two not-so-minor bedrooms, four bathrooms, a dining area, a separate dining and living room, and all manner of eye-catching art and antiquities over the suite's exquisite marble flooring. And as a bonus, complimentary wireless internet and a coffee/tea maker just in case that might be a deal breaker. Under 'posh' in dictionaries, the definition could well include a pic of this space. Suffice it to say that Grand Prix week is the most impactful business period of the year in these parts, fuelling our economic engine like no other event in the city and estimated to be generating around $100 million in revenues. A large chunk of that cash comes from tourists, mostly American and European, who get a big wallop for their buck from our dollar — in the U.S. 70-cent range — and who spend liberally with gusts to wildly at city boutiques and restaurants. Nor do they hold back on hotel room expenses, and hoteliers, ever wise to the ways of supply and demand, are able to up the ante on what they charge over this period. Regardless, our hotels are nearly fully booked for the period, and quite often reserved many months in advance of the actual race. For the record, the Ritz's Royal Suite can be had for a mere $12,000 a night the rest of the year — not exactly a commoner's price but still a relative cash break. The Ritz, with its 120 other luxurious rooms, has by no means the market cornered on lavish suites in town. The downtown Le Mount Stephen Hotel, within eyeshot of the Ritz, has a most stately, 5,000-square-foot penthouse suite, replete with an outdoor terrace and countless amenities like an in-house butler. The hotel can even install a private gym — at a price — should its occupant so desire. The suite can go for up to $15,000 a night — gym not included, with a four-night minimum during race week. It is rumoured that no less than British F1 royalty figure Lewis Hamilton has spent quality time here in the past and might even return again. Of course, it has been rumoured that Sir Lewis has stayed at the Ritz. Le Mount Stephen also offers three Sky Loft Suites, two Luxury Suites and seven Junior Suites going from $3,000 to $5,000 a night. Its other 90 rooms start at $1,300 a night. Not to be outdone is W Montreal at Square Victoria with its three EWOW suites, each with an outdoor terrace affording a panoramic overview of the city with nary an orange cone in sight. The W also has the aptly named WOW suites without terraces. Prices range from $1,300 to $5,000 a night — with a four-night minimum. Without doubt, though, the Ritz is turbo-charged for the Grand Prix, whether or not those who surface there occupy any of its suites, although many of the race's major players and visitors have also booked some of the hotel's 129 rooms, which start at $3,200 a night — with four-night minimum — with prices spiralling upwards toward the $18,000 Royal Suite. No matter, since the entire inventory of its rooms is sold out, notes Katia Piccolino, the ball of fire who serves as the Ritz's director of sales and marketing. 'We are the hub of anything off the track downtown,' Piccolino trumpets. No doubt. The tea-and-crumpet set vanishes as of Tuesday, June 10 as the lobby and restaurant area is transformed into a party zone for visitors. Festivities officially kick off at the Ritz on Thursday, June 11 with its 'Streets of Monaco' salute, with high-end sports cars dotting the hotel's Sherbrooke St. entrance and crowds converging outside to check out the who's who of celebs checking in. The most heralded Grand Prix party of all, the $1,000 evening bash takes place Friday the 13th with luminaries from the worlds of sport, culture, fashion and finance hobnobbing over caviar and champagne in the hotel ballroom. Cost of the affair is close to $1.6 million, and a percentage of ticket proceeds goes to the Barry F. Lorenzetti Foundation for mental health. So who's coming to the hotel? 'We are the Ritz so we do have to be discreet, but we can say that off the track people will see glimpses of those who may be on the track,' Piccolino somewhat discreetly notes. 'And let's just say that the occupant of the Royal Suite, which I would describe as 'old-school luxury,' is very well known and is from Hollywood. There will also be a lot of celebs and athletes staying here as well.' A previous Royal Suite occupant was Italian cinema icon Sophia Loren, who dazzled her guests and staff by concocting pasta dishes in the room's kitchen. Over the years, the hotel has also hosted Jennifer Aniston, Adam Sandler and Charlize Theron as well as Hamilton's Ferrari teammate Charles Leclerc and late/legendary Brazilian driver Ayrton Senna and Inter Miami superstar Lionel Messi. And gawkers outside the Ritz, particularly during Friday night's ball, can count on catching a flurry of Habs stars, past and present, as well as other NHL and NBA stalwarts, not to mention American fashion model Niki Taylor and possibly cast members like Naomi Watts, Tye Sheridan and Michael Imperioli from the film The Housewife currently shooting in town. 'Toronto has TIFF and we have the Grand Prix, which is the most lucrative week there is in Montreal and we have to rise to the challenge in keeping the vibe going and in innovating it every year,' Piccolino says. Le Mount Stephen account manager Amy Cadiz echoes Piccolino's comments: 'There is no question that Grand Prix week is our most important of the year, but it's our mix of new and old dating back to the times of its founder Lord George Stephen in 1926 that really resonates with our guests. And those fortunate enough to have stayed at the penthouse are so blown away by it. Many have said it's like living in a museum. It is truly one of a kind.' This gargantuan suite features three bedrooms, two bathrooms, two kitchens, a living room, dining room and an office, not to mention a butler at the guests' disposal. It sleeps 6, but frankly it could accommodate not only the F1 drivers but also much of their paddock-team members — and perhaps even their racecar. W Montreal offers a different ambience with a more modernistic touch but also butler — called an 'insider' here — availability. 'We have a kind of unique recipe as far as lifestyle goes — it's part of our brand DNA. We call it 'luxury liberated.' We don't have the formality of a luxury hotel, but we do have the luxury touches,' says Alexandre Tessier, the hotel's director of sales and marketing. 'The Grand Prix has been a kind of mini-Olympics for us. It's been such a huge blessing for hoteliers to have this every year, where demand always surpasses supply. It's our best time of the year by far revenue-wise.' Tessier credits the Netflix F1 series Formula 1: Drive to Survive in enticing more Americans to attend our Grand Prix and to stretch their dollar in the process: 'They don't count their dollars. … The race has been a real game-changer for us.' Though not necessarily geared to the needs of all F1 drivers, Nico Hülkenberg of the Haas team, has previously decamped here as have members of the Red Bull Canada sponsorship team. On the celeb side over the years, it's a different story as the W has welcomed Christina Aguilera, Gwen Stefani, Céline Dion, Snoop Dogg, Ice Cube and Tommy Lee. 'Rihanna almost stayed with us,' points out W's marketing manager, Sarah Le Bars. 'She was set to sleep in one of our EWOW suites, but her team decided not to wake her up after her show — so she ended up spending the night in her tour bus right in front of the hotel. A true missed opportunity … but a great story.' And then there are those Grand Prix regulars to the city who want none of the glitz associated with it. Nor do they seek swank amenities like gyms/swimming pools or restos/bars inside the hotel. What they seek instead is old-school charm that won't necessarily break the bank. And where they can find it is at Le Petit Hôtel on St-Paul St. Provided they were lucky enough to have booked one of this One-Key Michelin hotel's 28 rooms. Alas, they're long gone for this year's race. Situated in a heritage building — one of the oldest in Old Montreal — the hotel, launched in 2009, retains many of its original features, including its exposed stone walls, lancet windows and wrought-iron railings and has meshed them with Quebec-crafted furniture and stylish décor. Rooms, petit but cozy, range in price from $800 to $1,200 during the Grand Prix but prices drop significantly the rest of the year. Only continental breakfasts — featuring St-Viateur bagels — are served. No F1 drivers and only the occasional celeb — like Samuel L. Jackson, Alfre Woodard and Jake Gyllenhaal — seeking some serenity show up here. Far more A-listers turn up at the Petit Hôtel's much larger, more glam sister spot in Old Montreal, the 120-room Hôtel William Gray. 'Quite often, our guests book right after the Grand Prix for the next year's event,' says Georgia Antonopoulos, the vice-president of sales, revenues and marketing for the Gray Collection, owners of the two aforementioned spots. 'We cater to those who want to explore the city and are not looking to have their meals in the hotel. But when you wake up here, you know you're in Montreal.' The Gray Collection group is also the proprietor of the recently opened Le Petit Hôtel Notre-Dame in Old Montreal. Even plus petit than Le Petit Hôtel, this latest features but 17 rooms. 'Montreal is the North American flagship of the Grand Prix and really makes the city a global destination, putting a spotlight on the city and showcasing both the big and small attractions. We can almost forget about the street work — which may never end — during Grand Prix week,' cracks Antonopoulos, glancing over at the closed, construction-laden section of St-Paul St. outside Le Petit Hôtel. Sitting in the tiny lobby area, Philippe Cassidy, a former hotel employee, is totally oblivious to the clamour outside. 'I've worked at and have stayed at many hotels over the years, but, to my mind, Le Petit Hôtel is the best in the world,' Cassidy marvels. 'It is just so distinct.' Petite or princely, distinct does best describe lodging havens in Montreal — as it does just about everything else in this town. This story was originally published June 6, 2025 at 5:00 AM. Bill Brownstein montrealgazette Born and bred in Montreal, Bill Brownstein has been a columnist at the Gazette since 1987, commenting on the city and the splendid array of characters therein. Also a broadcaster, podcaster (Corner Booth), documentarian (Bill Lee: Profile of a Pitcher, Skating on Thin Ice), author (Down the Tube, Montreal 24, Schwartz's Hebrew Delicatessen: The Story).
