Electric Cars

The global leader in electric vehicle battery production, Contemporary Amperex Technology Co. Limited (CATL), through its visionary founder Robin Zeng, has issued a stark warning regarding the future of the American EV sector. Zeng contends that the United States' protectionist stance against Chinese EV components and batteries will, in the long run, impede the growth and competitiveness of its domestic automotive industry. This perspective comes amidst a complex geopolitical landscape where US policymakers have imposed significant tariffs, viewing Chinese battery manufacturers as a national security concern. However, the realities of technological reliance and market demand are creating a challenging scenario for American automakers. Zeng forecasts a potential policy shift around 2028, driven by the undeniable economic benefits and the prevailing influence of business interests over political barriers.

The Indispensable Role of CATL in the US EV Landscape

On March 25, 2026, Robin Zeng, a prominent figure and one of China's wealthiest individuals, conveyed his belief to The Wall Street Journal that the American electric vehicle market's prosperity is inextricably linked to CATL's technology. Despite the considerable tariffs levied by both the Biden and Trump administrations against Chinese-made EVs and batteries, CATL demonstrated its formidable market position by achieving record profits exceeding $10 billion in 2025. This success was largely attained without significant direct entry into the US market, showcasing its global dominance where approximately one in three electric vehicles sold worldwide are powered by CATL's batteries. Zeng emphasizes that without CATL's advanced battery solutions, particularly the cost-effective lithium-iron-phosphate (LFP) technology, the US EV industry faces an arduous and expensive path to development.

Indications of this dependency are already surfacing. Ford, a major American automaker, has shifted its strategy by partnering with CATL for its Michigan battery plant, where it plans to produce CATL-designed LFP batteries. This arrangement involves intellectual property royalties paid to CATL, navigating existing US legal and political frameworks. Similarly, General Motors is incorporating CATL-sourced LFP batteries into its 2027 Chevrolet Bolt model. While currently importing these batteries from China under a temporary agreement, enduring a 60% tariff, GM's decision underscores the immediate necessity for affordable battery technology, especially given the underutilization of its own multi-billion-dollar US battery facilities. Even Tesla utilizes CATL technology for its Nevada energy-storage systems. These developments highlight a growing reliance on CATL's innovations, suggesting that a complete isolation from Chinese battery technology may prove unsustainable for the US.

As the debate continues, proponents of collaboration with CATL argue that the company is crucial for enabling the production of more affordable batteries and accessible electric vehicles in the US. They warn that a continued exclusionary policy risks the US falling irrecoverably behind in the global EV race. Robin Zeng remains firm in his conviction that American industry requires CATL's cutting-edge, cost-efficient battery technology to stay competitive, especially for advanced EVs and autonomous vehicles like robotaxis. He acknowledges CATL's willingness to invest in the US, despite current restrictions preventing the establishment of manufacturing facilities. Zeng optimistically looks towards 2028, believing that the inherent strength and longevity of business relationships will ultimately transcend political barriers, paving the way for greater cooperation.

The discourse surrounding CATL's role in the US electric vehicle market underscores a pivotal moment in global automotive industry development. It highlights the intricate balance between national economic protectionism and the imperative for technological advancement and market competitiveness. The insights shared by CATL's founder, Robin Zeng, serve as a potent reminder that in a globalized economy, innovation and supply chain integration often outweigh political divides. For the US, embracing or isolating from key international players like CATL will undoubtedly shape the trajectory of its EV future. This situation invites further reflection on how countries can foster domestic growth while leveraging global expertise for collective progress in sustainable technologies.

General Motors is set to implement a significant powertrain change for its 2027 Chevrolet Equinox and GMC Terrain models. Both popular SUVs will abandon the continuously variable transmission (CVT) in favor of a conventional eight-speed automatic gearbox. This decision, backed by a substantial investment in GM's Toledo Propulsion Systems facility, signals a shift in the manufacturer's approach to powertrain offerings and reflects a growing trend within the automotive industry to move away from CVTs. This change promises to enhance the driving dynamics of these vehicles, offering a more familiar and potentially more engaging experience for consumers.

The move away from continuously variable transmissions marks a notable evolution in GM's vehicle strategy. The introduction of an eight-speed automatic transmission across all 2027 Chevrolet Equinox models, and consequently the GMC Terrain, will provide a more conventional and potentially more satisfying driving experience. This strategic shift is supported by a significant investment in the Toledo Propulsion Systems facility, ensuring the infrastructure is in place to produce the new transmission variant. This upgrade is anticipated to be a key factor in improving the overall performance and market appeal of these vehicles, aligning them with consumer preferences for traditional automatic transmissions.

The Shift to Eight-Speed Automatic Transmissions

General Motors is implementing a significant change for its 2027 Chevrolet Equinox lineup, replacing the continuously variable automatic transmission (CVT) in front-wheel-drive models with a more traditional eight-speed automatic. This decision, confirmed by GM’s official vehicle order guide, will standardize the transmission across all Equinox variants, as all-wheel-drive models already utilize an eight-speed unit. This strategic shift is bolstered by a substantial $39 million investment in GM’s Toledo Propulsion Systems facility, specifically aimed at increasing capacity and introducing the new transmission variant. Consequently, the GMC Terrain, which shares mechanical underpinnings with the Equinox, will also see its front-wheel-drive versions equipped with the new eight-speed automatic, marking an end to the CVT era for both popular SUVs.

The integration of the eight-speed automatic transmission is a direct response to a broader industry movement away from CVTs, which have often been criticized for their less engaging driving feel and distinct engine noise characteristics. This upgrade is expected to deliver a more refined and responsive driving experience for Equinox and Terrain owners. Ohio representative Elgin Rogers (D-Toledo) highlighted the importance of the Toledo facility investment, noting its role in facilitating this transition and supporting the production of a new transmission type. Beyond the powertrain enhancements, the 2027 Equinox is anticipated to feature minor cosmetic updates, such as changes in exterior color options and interior stitching, indicating a focus on both mechanical improvements and subtle aesthetic refinements to maintain its competitive edge in the compact SUV segment.

The Evolving Landscape of Transmission Technology

The automotive industry is witnessing a gradual decline in the adoption of continuously variable transmissions (CVTs) by major manufacturers, as evidenced by GM's decision to replace them with traditional eight-speed automatics in the 2027 Equinox and Terrain. This trend is not isolated to GM; Nissan, a long-standing proponent of CVTs, recently opted to replace the CVT in its refreshed 2025 Murano with a conventional nine-speed automatic. While CVTs were initially lauded for their potential to enhance fuel efficiency and smooth out acceleration, their distinctive operational characteristics, particularly the "rubber band" effect and the sustained engine drone at higher RPMs, often proved unpopular with drivers accustomed to the distinct shifts of geared transmissions. Despite these criticisms, some manufacturers, like Subaru, have remained committed to CVT technology, leveraging continuous development to improve their performance and driver acceptance.

Historically, CVTs were introduced as an innovative solution to optimize engine performance and fuel economy by maintaining the engine at its most efficient operating point. The first production car in the United States to feature a CVT was the 1989 Subaru Justy GL, showcasing the early adoption of this technology. However, the driving experience associated with CVTs, characterized by a constant engine speed during acceleration rather than the progressive revving and shifting of traditional automatics, often alienated a significant portion of the driving public. This divergence from conventional driving dynamics, coupled with advancements in multi-speed automatic transmissions that offer both efficiency and a more engaging feel, has led many automakers to reconsider their transmission strategies. The move by GM and Nissan reflects a collective pivot towards geared transmissions, aiming to meet consumer expectations for responsive acceleration and a more familiar, satisfying driving experience, even as the pursuit of fuel efficiency remains a critical design objective.