The rise of inexpensive Chinese electric vehicles has upped the pressure on legacy automakers who have turned to suppliers, from battery materials makers to chipmakers, to squeeze out costs and develop affordable EVs quicker than previously planned.
No reason why western countries also can’t subsidize EV car companies to remain competitive.
Like…what are we supposed to do? Be content with ridiculously priced EVs and be willing to pay a small fortune for them? Fuck off with that noise.
Western corporations have had no problems fucking over the average consumer for decades or laying off thousands of employees at the first sign of trouble. Let them adapt or die I say. Competition is always good. Western corporations have the smarts and the resources to compete, they just need to be forced to.
Controversial take: the problem isn’t car prices. They haven’t increased that much when compared to inflation, and you’re getting far more and far better cars for your money when adjusted for inflation.
The problem is wages haven’t risen and housing prices have risen too much, meaning people have less to spend on a car.
E: I googled. In the US the cost of a median house was 18k in 1953. An average car cost 3.5k.
Now, the median house costs 400k.
400k/18k x 3.5k = If car prices had risen as much as house prices, the median car would cost 77k.
Yes… cars now are faster, safer, and more efficient than they were in the 50s.
Even if you discount all the “features” they’ve added the bare necessities of a car are tons better than mid-20th century cars or even late 20th century cars
That‘s a terrible idea. Just because China throws irresponsible amounts of cash at cars doesn‘t mean we have to do the same mistake. We can simply say it‘s not OK to sell products under manufacturing costs to gain market share and that‘s that. Let‘s not inflate the already oversized car market even more.
I agree it’s a bad first step. I’d keep trying idea on the table, but I’d start by working with the European car manufacturers to create huge tariffs on those cars. Make it impossible for them to be sold at those prices in Western markets
They can simply say they don’t subsidize their manufacturing and operate profitably at those prices.
Just saying something doesn’t make it work unless there are legal things that back up the position. And in foreign trade, that means tariffs… which economists have been screaming about (for decades) having negative ramifications that ripple through the economy.
It is, but as the article mentions some manufacturers are making a loss of 35k per car.
If those cars are then sold for 5k less than the US/EU/Japanese equivalent, despite lower wages and environmental standards, you have to ask yourself questions.
Yes you just described the business model. Everyone from Walmart to Amazon to Uber uses it. They take a loss in the short term, relying on new investor money or other products.
Yep. They‘re doing exactly what we usually call hostile underbidding to heavily inflate prices later when they‘re a top dog. A practice that is not quite legal in most parts of the west. And whoever wants to know when things still don‘t work out for the car maker because subsidies dry up: Search for Chinese manufacturer ‚Weltmeister‘. That will make you think thrice about ever coming near a Chinese EV.
The kind of thing usually results in a trade war, sanctions and tariffs.
The problem in Europe, is that our manufacturers are so reliant on Chinese parts and manufacturing, that they’ve asked our government NOT to intervene. China has them by the nuts, because they’ve outsourced too much. IRC they can’t even make batteries without using Chinese parts.
Chinese manufacturers are being heavily subsidised and even making a loss on their cars.
They’re trying to kill off our domestic car industries.
No reason why western countries also can’t subsidize EV car companies to remain competitive.
Like…what are we supposed to do? Be content with ridiculously priced EVs and be willing to pay a small fortune for them? Fuck off with that noise.
Western corporations have had no problems fucking over the average consumer for decades or laying off thousands of employees at the first sign of trouble. Let them adapt or die I say. Competition is always good. Western corporations have the smarts and the resources to compete, they just need to be forced to.
Controversial take: the problem isn’t car prices. They haven’t increased that much when compared to inflation, and you’re getting far more and far better cars for your money when adjusted for inflation.
The problem is wages haven’t risen and housing prices have risen too much, meaning people have less to spend on a car.
E: I googled. In the US the cost of a median house was 18k in 1953. An average car cost 3.5k.
Now, the median house costs 400k.
400k/18k x 3.5k = If car prices had risen as much as house prices, the median car would cost 77k.
Not a controversial take at all IMHO. You’re not wrong. Housing is absolutely ridiculous right now.
Better at getting me from A to B?
Yes… cars now are faster, safer, and more efficient than they were in the 50s.
Even if you discount all the “features” they’ve added the bare necessities of a car are tons better than mid-20th century cars or even late 20th century cars
Well, most of it are now needlessly oversized, diminishing the better efficiency.
Or just let those who can’t compete die, which is totally fine.
I don’t have any loyalty to some specific car brand.
That‘s a terrible idea. Just because China throws irresponsible amounts of cash at cars doesn‘t mean we have to do the same mistake. We can simply say it‘s not OK to sell products under manufacturing costs to gain market share and that‘s that. Let‘s not inflate the already oversized car market even more.
I agree it’s a bad first step. I’d keep trying idea on the table, but I’d start by working with the European car manufacturers to create huge tariffs on those cars. Make it impossible for them to be sold at those prices in Western markets
They can simply say they don’t subsidize their manufacturing and operate profitably at those prices.
Just saying something doesn’t make it work unless there are legal things that back up the position. And in foreign trade, that means tariffs… which economists have been screaming about (for decades) having negative ramifications that ripple through the economy.
Selling at a loss to enter a market or gain market share is a time honored tradition at this point.
It is, but as the article mentions some manufacturers are making a loss of 35k per car.
If those cars are then sold for 5k less than the US/EU/Japanese equivalent, despite lower wages and environmental standards, you have to ask yourself questions.
Yes you just described the business model. Everyone from Walmart to Amazon to Uber uses it. They take a loss in the short term, relying on new investor money or other products.
Or they could be building economies ot scale? You can’t drive down costs making thousands, you need to make millions.
That’s possible too. It’s not like the US doesn’t give businesses loans and grants for upscaling.
Sounds exactly like the rest of us
Everyone heavily subsidises their car industry
Yep. They‘re doing exactly what we usually call hostile underbidding to heavily inflate prices later when they‘re a top dog. A practice that is not quite legal in most parts of the west. And whoever wants to know when things still don‘t work out for the car maker because subsidies dry up: Search for Chinese manufacturer ‚Weltmeister‘. That will make you think thrice about ever coming near a Chinese EV.
It’s also called dumping:
https://en.wikipedia.org/wiki/Dumping_(pricing_policy)
The kind of thing usually results in a trade war, sanctions and tariffs.
The problem in Europe, is that our manufacturers are so reliant on Chinese parts and manufacturing, that they’ve asked our government NOT to intervene. China has them by the nuts, because they’ve outsourced too much. IRC they can’t even make batteries without using Chinese parts.
Good