Automotive Ventures urges legacy automakers to partner with Chinese EV makers to cut costs, speed development

By Public Technologies
  • Automotive Ventures management warned legacy automakers face a “precarious future” without a major reset to cut vehicle development time and cost.
  • Framed China’s auto market as “involution,” citing aggressive price competition that compresses margins and accelerates innovation cycles.
  • Pointed to Chinese brands at roughly 12% of European sales, 16% in the UK, signaling rising pressure outside the U.S.
  • Highlighted Australia’s shift from about 3% to around 30% Chinese share in three years; Toyota dealer valuations reportedly fell to 3x from 6x earnings.
  • Urged “co-opt, neutralize, compete,” including partnerships or joint ventures to learn Chinese cost and speed advantages; called tariffs a short-term Band-Aid.


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