YOUR NEXT CAR WILL BE A VOLT:

This is the death sentence for the obsolescence-obsessed auto sector. Geely is already well set up to make smart EVs. Baidu has been developing autonomous vehicle tech for some time now, and the two companies are an obviously good fit. The market already likes it.

Baidu stock jumped 4% on the NASDAQ. (NASDAQ:BIDU) As Reuters reports in murderous detail, Baidu isn't the only Chinese company moving in this direction. This is no longer about basic auto manufacturing and design trivia. This is a whole new class of vehicle with a lot to recommend it. It comes as a new generation of long-range, high power EVs hit the market.

The mainstream market will be as dead as the internal combustion engine (effectively extinct) if it doesn't pay attention. This is all existing newish tech, to a very large extent. There's nothing too hard in this approach.

Mainstream manufacturers have one option - Stay in the pre-Cambrian era of car technologies or join the new streams. The other option is to go broke.

Tweet   @brothersjudd