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.
EU allows all sorts of stuff that isn’t allowed in the US. Believe it or not, US safety regs are generally higher than the EU (for passengers, anyway). The Ariel Atom, for example, needs some hoop jumping to make it US street legal, but can be driven without issue much of the EU.
Wow, I didn’t realize there were Chinese cars on the European market. Are the cars being received well? Are there major issues with them and if there are major issues, does price still make them worth it?
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.
I’d be OK with it, but with some caveats. Many US safety regs (and some pollution regs, as well) push things towards larger vehicles in indirect ways. Japanese Kei cars can be perfectly good for city use–not for US highways, but a lot of driving doesn’t need to go there–but they would never pass US safety regs. And you don’t need to get much bigger than a Kei to have something that works for US highways. Big is only safer for passengers, not for people outside the vehicle.
So if it comes in the context of also getting smaller cars on the road, that would be fine.
