If anyone would care to read the article it’s more about companies making more high end cars and running low stocks than making cars bigger. They reduced stock during the pandemic and discovered that they can make more money selling fewer cars with maxed out specs than a lot of base models. They simply don’t have base models on stock now and people still have to buy cars so profits are soaring. Basically they made everyone depend on cars by killing public transport and are now milking it hard. Because what are you going to do? Work from home?
Good thing China isn’t ready to flood the market with millions of cheap electric cars. This short term profit is going to end up biting them in the ass real quick. Although I guess they know they’ll just get bailed out, so there’s no reason to innovate.
Not to worry: protectionism will take take of the competition. Just like they did with the Japanese manufacturers…
Most of those Chinese cars wouldn’t meet US safety regs. Getting them up to that level would put them closer to cost parity.
They sell them in the EU, which has stricter safety regulations. If they set out to do it, they’ll flood the market and get the traditional manufacturers in trouble.
My biggest worry is that once/if the Chinese make cars “good enough for the US market”, all car companies lobby for worse consumer protections since those regulations no longer keep new competitors out of the market.
Oh hey almost exactly like the housing issue… Greedy fucking companies realized they made more making McMansions than starter houses so no one makes reasonable houses anymore and we’re all stuck trying to buy 4+ bedroom overpriced shit…
There’s no way this could be bad for society at large especially when driving is pretty much mandatory outside of cities. Nah, it couldn’t be bad because it’s good for corporations. Not that anyone cares. Externalities is just a fancy word…
Remember: can’t afford life? Move to a low cost of living area and drive 2 hours to work! …wait…
That’s going to break down when Starbucks in San Francisco/etc. can’t find workers because the cost to drive 20 miles to work is greater than what they’re being paid. That day when low-paying big city jobs disappear because no one can afford to get there and work there is coming very fast.
It’s already here. They aggressively recruited among the higher middle class urban kids and poverty kids who can use mass transit. And now they have a very stubborn union movement.
Remember: can’t afford life? Move to a low cost of living area and drive 2 hours to work! …wait…
The article even mentions some research that in the suburbs people with cars tend to get better jobs.
That’s a lot of words to say “Cartel”. Car…tel… get it?
I’m here all day, folks! 👍
Here’s a hint: the automakers are doing great. By essentially coordinating an industry-wide production cut, the pandemic gave manufacturers power to demand mind-boggling prices for fewer cars, leading to record profits. As consumers adjusted their expectations, executives saw an opportunity to establish a lucrative new normal. Low inventory is an “opportunity to drive strong margins”, GM’s CEO, Mary Barra, told shareholders in 2022. Ford’s CEO, Jim Farley, went even further, declaring: “I want to make it extremely clear to everyone: we are going to run our business with a lower day supply than we have had in the recent past because that’s good for our company.”
Also see: collusion… market manipulation… fauxflation.
Yet another point in the argument for a government corporation that makes basic shit and provides basic services across the board.
I’ve noticed this trend in other businesses, as well.
They’ve realized it’s more profitable to screw over fewer people harder than it is to try to appease more customers with better deals. The most notable example of this to me would be the fast food industry.
It’s a win-win, because they get to expend fewer resources due to fewer customers and they make more money with each transaction.
Fuck greed and anyone who supports it.
Oh hey almost exactly like the housing issue… Greedy fucking companies realized they made more making McMansions than starter houses so no one makes reasonable houses anymore and we’re all stuck trying to buy 4+ bedroom overpriced shit…
There’s no way this could be bad for society at large especially when driving is pretty much mandatory outside of cities. Nah, it couldn’t be bad because it’s good for corporations. Not that anyone cares. Externalities is just a fancy word…
Remember: can’t afford life? Move to a low cost of living area and drive 2 hours to work! …wait…
To extend and clarify a bit, if you want a base model they don’t have, you have to pay a delivery fee. At which point you might as well buy the higher trim on the lot.
