Stellantis CEO says Chinese EVs are ‘possibly the biggest risk’ facing his carmaker and Tesla::The owner of the Dodge, Jeep, and Chrysler brands aims to take on Chinese EVs while avoiding a “race to the bottom.”
Free market wen china : >:(
I hear you, but this is Lemmy, we’re all supposed to be CCP shills and think free markets are the worst thing ever.
I wanna say just compete better, but the only way to do that is lower employee wages and reduce regulations.
Because the competition is on price, EVs need to compete with cheaper ICE cars.
That’s true for every consumer product. The key here is segmentation and (re)positioning.
Today cellphones are the cheapest they have ever been. Still, iPhone was never more expensive.
BYD and cia are not only building a cheaper product, they’re also building better ones at their price range.
It’s very difficult to compete on price against companies that are heavily subsidized by the government.
Tesla however also enjoy those subsidies because they manufacture cars for EU in China. So it’s kind of puzzling why Stellantis would think this is a concern for Tesla too, when they are one of the beneficiaries.
It’s not an apple with apple comparison though. People are willing to pay a higher price for EV when factoring in reduced maintenance costs, charging and ?? environmental benefit.
Lowering wages and reducing regulations is not required to compete
It is if your competition is a nation that treats its workers like even bigger garbage than western companies do. They cannot go lower than China can.
No shit. They’re getting huge governmental help, openly steal from non-chinese companies, global trade is already structured around them, and they can utilise literal slave labour.
But most importantly, China is targeting a market that no other EV maker wants to go into first : Reasonably priced EVs.
This guy doesn’t care about any of the above. He just doesnt want the EVs he sells to lose their incredibly high margins. If china comes in and swoops up a buyer at 22k then he loses one at 52k.
That’s it. These vendors could take the legs out of China in the market by offering comparable cars at comparable prices, but they want all EVs to stay “luxury” instead. That’s China’s real threat. They are dropping the bottom out of the artificial high priced market with reasonably priced cars.
The risk is that he would actually have to compete instead of resting on the beach. It’s good that these people are sweating when some fire is placed under their butts in the form of competition.
Capitalists suddenly stop loving the free market when it hurts their profits
The argument is that it is NOT a free market, because the Chinese cars are government subsidized. A Government subsidized company is not part of a free market.
Well frankly Western governments should also be subsidizing electric car production. If they actually want to move towards net zero, like they claim, it would be reasonable to expect them to actually do something to encourage greener technologies. Currently all they’ve done is said that they like it very much, and oh look let’s build one or two wind farms.
Well frankly Western governments should also be subsidizing electric car production.
They are, EU governments give incentives and tax reductions to all EVs. That way all benefit equally, disregarding where the car was made, but EU is NOT subsidizing manufacturers illegally.
USA also has anti competitive regulation like China, but in USA you only get the benefits for cars made in USA, on top of that EV cars from China have a steep tax added.
Of the 3 biggest markets in the world, only EU is playing fair. But all have EV incentives.
