Car makers can’t be bothered to compete so they lobbied (bribed) the government to just ban the competition.
Free market but only until someone overtakes us, then shun them to eliminate cheap merchandise so we can rig up the prices, did i understood that right?
I’m frankly getting pretty goddamn annoyed at all the people who relentlessly fail to understand that the PRC is heavily subsidizing production of basically all of their EVs in the interest of undercutting literally all other countries that are (or are trying to) produce EVs.
By all means, research what I’m saying here to confirm its veracity - in fact I encourage you to. This is economic warfare, plain and simple.
…it is bad. It’s particularly bad because the PRC is running the show, and they very certainly do not have the best interest of any group but themselves (as in, the Party, and particularly, the Party Committee) in mind.
Having a cheap supply chain that incentives and heavily costs cut for EVs is bad? I can’t follow this
Its not just the EV, its every layer of the supply chain. From the lithium they mine, the batteries they make out of it, the circuits and metal fabricating. Their government subsidies the electricity, tools, facilities, labor, etc. I work in the engineering field and I see bits and pieces of this everyday and have seen it for decades because I’m forced to source parts from China.
And what do you think the EV rebates in the US are?
Fuck the rich. I need a cheap, safe, and reliable vehicle to get to work.
Do you understand the difference between subsidizing domestic purchases and subsidizing export production?
Do you understand that free money on domestic purchases can be used however the corporation pleases? There’s not some magical divide.
Allowing a country’s political party to position their industry in a monopolistic way is a bad idea. When one group controls an industry they much more easily exploit their consumers. Encouraging folks to buy ev’s in general is different from undercutting prices to create a dominant position in the market that can be exploited once you have no meaningful competitors
That being said, we all know thats not why they’re doing it, they’re doing it to protect the interests of US auto makers, which also sucks
China is hardly going to be able to under cut the Big 3. Unless they just refuse to come down on their prices. More competition stops monopolistic forces, not the other way around. This narrative has been going around like our auto industry is some mom and pop shop that needs protection from Walmart. In reality they’re the monopolistic force in our market and you can see that by the insane prices they are charging.
EVE Online taught me this lesson. Those with the resources to do so will take a loss to price you out of the market, because they know you can’t take the losses nearly as long as they can.
This isn’t a mom and pop shop. This is the Big 3 in the country with a GDP 10 trillion dollars higher.
Stop spreading red panic, it’s not the 1950’s.
And that’s precisely what’s happening here. A car manufacturer with a whole-ass government subsidizing it is going to be able to operate just fine at a loss pretty much indefinitely, whereas a normal car manufacturer would sooner or later simply go bankrupt (pointedly ignoring the whole “too big to fail” idiocy, which to be honest, while similar, isn’t quite the same thing).
Got em shakin in their slacks
Although the BYDs and GWMs and MGs are getting popular in Australia, I have literally never seen a Chinese EV in the States outside of locally built BYD busses, and BYD cars have distinct designs that are fairly easy to spot. So this feels like posturing to me.
I have literally never seen a Chinese EV in the States outside of locally built BYD busses, and BYD cars have distinct designs that are fairly easy to spot. So this feels like posturing to me.
The Chinese business strategy has been to target East Asian, Indian, Russian, and West African car markets. They’re not trying to compete with US cars in the United States. They’re displacing US export markets in the Third World. You might be able to find them south of the border, however. In the first five months of 2023, Chinese exports to Latin America reached over 330,000 vehicles with a special focus on Mexico and Chile.
Meanwhile, the US has had a long and storied tradition of open hostility to foreign car manufacturers. Consequently ten different car manufacturers have plants in the United States.
These taxation and regulatory provisions are shockingly similar to the Chinese rules that guys like Biden and Trump deride as anti-competitive. And given the quality of US vehicles has long been sketchy at best, with a continued reliance on ICE engines in a market that increasingly favors the cheaper and more reliable electric vehicles, its questionable how long the Big Three domestic brands can even survive.
The government will make sure they survive. They’re to big to be allowed to fail.
