Waymo’s Robotaxi Expansion Faces Challenges from Biden’s Tariffs

Waymo's Robotaxi Fleet Expansion Faces Challenges Amid US-China Trade Policies

Waymo, the autonomous vehicle company owned by Alphabet, is navigating a complex landscape of trade policies that could impact its plans to expand its robotaxi fleet significantly. The company was gearing up to introduce a new robotaxi created in collaboration with Zeekr, a subsidiary of China's Geely. The vehicles are designed in Sweden, where Geely also owns Volvo, and have been adapted from the all-electric five-door Zeekr model. Waymo is focused on equipping these vehicles with the necessary hardware and software for autonomous driving. However, recent developments in US trade policies threaten to derail these plans.

New Tariffs Imposed by the Biden Administration

Recently, the Biden administration announced plans to implement stringent tariffs on imported electric vehicles (EVs) from China. This new policy could result in tariffs rising from the current 25 percent to a staggering 100 percent. The implications of these tariffs, expected to take effect soon, raise significant concerns for Waymo as it aims to deploy the Zeekr vehicles in the United States.

Impact on Electric Vehicle Market

The US Commerce Department is also set to introduce rules that would restrict any software originating from China for autonomous and connected vehicles operating in the country. With the EV market share in China projected to reach nearly 50 percent in 2023, this nation has quickly established itself as a pivotal player in the global shift towards electrification.

Current Challenges for Waymo

Despite existing tariffs preventing many Chinese manufacturers from successfully importing their EVs into the US market, Waymo has now found itself entangled in the trade tensions between China and the US. According to Waymo, it is closely monitoring the evolving situation and emphasizes that its autonomous driving software does not originate from China.

Waymo's Autonomous Vehicles Tested in California

Earlier this year, the Zeekr-made vehicles were spotted for the first time in California, marking a significant step in Waymo's testing phase. However, the company refrained from providing details regarding the number of imported vehicles or how long the current tariff situation might affect its future deployment plans. "We are monitoring the tariffs closely," said Waymo spokesperson Ethan Teicher. "We’ve begun manual driving public road testing of the 6th-generation Waymo Driver on the Zeekr vehicle platform and don’t have further updates at this time."

Waymo's Current Fleet and Future Plans

At present, Waymo's fleet consists primarily of Jaguar I-Pace electric SUVs, which are operational in cities like San Francisco, Los Angeles, and Phoenix. According to recent documents, Waymo has approximately 670 driverless vehicles, although they have retired their Chrysler Pacifica minivans this year.

Cost-Effective Solutions with Zeekr Vehicles

The introduction of the Zeekr-made robotaxi is strategically significant for Waymo, which has incurred substantial expenses during its development phase. The Zeekr vehicle was expected to offer a more cost-effective alternative to enhance Waymo's market competitiveness against services like Uber and Lyft as it has the capacity for five passengers.

However, the looming tariffs could complicate Waymo’s strategy for expanding into new cities with this innovative vehicle. The company may need to reassess its plans depending on how the tariff situation develops. Furthermore, if tariffs significantly raise operational costs, the feasibility of utilizing vehicles without traditional controls may face regulatory hurdles before they can be deployed on public roads.

Conclusion: A Wait-and-See Approach

For now, Waymo’s future in the autonomous vehicle market hangs in the balance as it takes a wait-and-see approach to the evolving tariff landscape. The company stands ready to adapt its strategy in response to the finalization of the Commerce Department's regulations, and only time will tell how these changes will affect the expansive potential of its new fleet.