| Thanks for reading Hyperdrive, Bloomberg’s newsletter on the future of the auto world. Read today’s featured story in full online here. The bruising price war in China’s auto industry has seen dozens of smaller carmakers quit the sector, leaving their customers with a problem: What do you do when your high-tech electric vehicle becomes obsolete? Shanghai resident Mu, who asked to be identified by his last name due to privacy concerns, purchased his WM Motor EX5 EV in 2022. Since the company’s collapse in 2023, connectivity features have gradually vanished. Bluetooth keys no longer unlock doors, in-car entertainment systems are silent, maps don’t update and video streaming is unreliable. While it’s still cheaper to run than his previous car — a gasoline-powered Buick — the loss of intelligent features, difficulties in taking out insurance and uncertainty around being able to replace components in the future have vastly diminished his driving experience. “It’s incredibly boring now sitting in the car. No music, no video, no news, and even maps sometimes turns dark,” Mu said. “The car itself is fine as it’s quiet and efficient. But now it’s just a basic mode of transport.”  A WM Motor EX5 electric sport utility vehicle at the Guangzhou auto show in November 2018. Photographer: Qilai Shen/Bloomberg Years of generous subsidies sparked frenetic growth in China’s EV market as hundreds of startups and their sophisticated tech-forward models flooded the market. But as the government started to rein in excess, competition for customers intensified and rounds of aggressive price discounting has given more power to industry giants like BYD and left smaller players scrambling to survive. Jiyue Auto shows how quickly things can change. A little over a year after launching its first car, the carmaker jointly backed by Geely and Baidu is scaling down production and seeking fresh funds amid reports it’s struggling to make payments. Some owners are now part-time ride-hailing drivers, hoping to maximize use of their vehicles and earn extra money to make up for the looming loss of their high-tech features. Even more established carmakers aren’t immune. Bob Huang, a Nanjing-based owner of a Hozon Neta S, recently encountered difficulties getting his electronic display repaired. With two company-run shops closed and local dealers overwhelmed with customers and facing component shortages, he was left without adequate support. “Even though the company is still operating, software updates are slowing,” Huang said, adding that he thinks the latest version of the car’s driving-assistance system is worse than the previous iteration. “I doubt they have the bandwidth to even fix the bugs.” Hozon said it’s recently experienced difficulties in providing repairs for some users, but is taking measures to improve the situation and expects current issues will be resolved by April. The carmaker has cut production and jobs after experiencing a sharp sales decrease in 2024, according to Chinese media reports.  The Neta V assembly line at Hozon’s factory in Tongxiang in 2022. Photographer: VCG/Visual China Group With dealerships and aftersales service shuttered, some owners are now looking to unauthorized repair shops for help. Others are turning to online platforms like Xianyu, the used goods marketplace controlled by Alibaba that’s the largest in China, to trade parts. Desperate times have also seen a burgeoning network of EV technicians emerge, offering to hack into car systems and install pirated software to restore some functionality. “We can’t treat cars like smartphones. You’ll still expect to drive a car for five years or so,” said Yang Jifeng, chief technology officer at automotive technology provider Caresoft and former vice president of AI and digitalization at Great Wall Motor. “Maintaining basic functions like Bluetooth key access and ensuring core in-car systems operate smoothly shouldn’t be hard, and should be the bottom line.” The issue goes beyond leaving drivers with low-tech cars. Some insurers are demanding significantly higher premiums or even refusing coverage altogether, meaning buyers are spending thousands of dollars for a vehicle that may not be worth repairing. Earlier this year, the Chinese government released guidelines on new-energy vehicle insurance that urges more effective protection. For drivers contemplating a major purchase, the risk of a car going offline is likely to accelerate the broader shift to the perceived safety of a big name manufacturer. “I would definitely opt for a well-established brand next time,” Mu said. “At least their market success speaks for itself.”  Friedrich Merz, leader of the Christian Democratic Union, speaking at the party’s election night event Sunday in Berlin. Photographer: Krisztian Bocsi/Bloomberg Germany’s conservative leader Friedrich Merz emerged as the winner in Sunday’s election, though the results left his Christian Democrat-led bloc with a narrow path to power. While Merz’s CDU/CSU won 28.6% of the votes, the only centrist two-party option for a majority in the Bundestag is to partner with the battered Social Democrats. Despite finishing third with 16.4% — its worst result since World War II — the center-left party has substantial leverage ahead of coalition negotiations. The far-right Alternative for Germany, or AfD, doubled support to become the second-strongest party with 20.8% of the vote, but will have little concrete power after Merz ruled out an alliance.  Dara Khosrowshahi speaking at the Future Investment Initiative (FII) Institute Priority conference in Miami. Photographer: Zak Bennett/Bloomberg Uber CEO Dara Khosrowshahi said Elon Musk isn’t open to making Tesla’s planned robotaxis available on the ride-hailing company’s platform. “I’ve had conversations with him,” Khosrowshahi said of Musk in an interview with Bloomberg Television at the FII conference in Miami. “They want to build it alone, so to some extent in Austin, we and Waymo will be competing with Tesla when they launch.” | 
