cross-posted from: https://lemmy.ml/post/15089465
Americans Are Open To Cheap Chinese Cars. That’s ‘Scary’ For The Rest Of The Auto Industry
“American companies are scared of the open market when it works against them, yet refuse to make better products”
There is a good reason why American companies are scared. It almost never works out for them. Sony vs Zenith TVs is a great example about how a foreign company improved on a technology (color tv) and made zenith look like a stingy dinosaur overnight. Instead of selling color TV’s zenith just doubled down and sold cheaper shittier TV’s. By the time color was standard, their reputation was ruined and no one wanted a Zenith when Sony was the best. Sony however wouldn’t have been able to get into the market without help from zenith in the first place.
They should stop choosing the “double down on making products shittier part”.
You could’ve been telling the story of the 80s automotive industry. Or really any American manufacturer.
The issue was that Chinese EVs are ahead of Western EVs due to aggressive subsidy and investment by the Chinese government to get ahead. So the market has been distorted which is what was “scary” according to the quite in the article that spawned the headline.
Having said that, I’m not sure I believe that Chinese EVs will be better quality. They may be cheaper and they may even have technically advanced but from experience of other Chinese products, quality is not a word I’d associate with them.
The US government can do the same, and they do bailouts for companies often too. Isn’t that also meddling in the free market? Why didn’t the US government incentivize EV then?
Look into Harley Davidson, they should have gone bankrupt multiple times but were saved by high tarrifs placed on imported bikes.
Harleys are so ridiculously overpriced it’s hard to believe tariffs on the competition would make any difference
Americans aren’t going to care about quality that much if their monthly payment is only $200. As long as a Chinese EV is reliable long enough to make it’s total cost of ownership much lower than American EVs or ICEs they will line up to buy them.
The American market has been desperate for a cheap and reliable car, a role Japanese automakers used to fill, and both US and Japanese makers know it.
All the best and worst shit you own is made in China. If you don’t want cheap shit don’t buy cheap shit, but these cars are really nice and inexpensive.
These cars are in tons of countries outside of China and they are very well received.
I agree with you. China is manufacturing cheap products because that’s what (a lot of) consumers want as well. They also make expensive quality products, too. I have friends who like to rag on Made In China products but they love the quality of their iPhones which are just Designed in California.
I don’t know about other countries but US has both pretty strong incentives and protectionist barriers. However they’re meant to be temporary. This is legacy automaker’s chance. A few years for the government to help them transition, but they need to be willing to come out of the closet. They’re throwing that opportunity away
If anything, American companies have a massive resistance to change. Change has a risk and a price, and they’re determined to stick with what works. Like the movie industry…why make brave and risky moves to make a unique movie when you can retread old ones or wring every penny out of a franchise?
Anyway, the US auto industry has a long history of institutionalized exceptionalism, I can’t find it right now but there’s a quote from one automaker that, when confronted with a suggestion that change is needed, the response is essentially “you’ll buy what we tell you you’re going to buy”. IOW they dictate what the consumer wants and gets. And maybe they’re gambling on more protections against Chinese companies so they don’t have to change and can maintain their control. Incentives just seem to be soaked up and disappear. They jack up the prices to the consumer so there’s no real help, like Tesla raised their price to match buying incentives offered by the government to consumers. Straight up greed.
American Cars look like relics from the last century when compared to Chinese design and capabilities, that is why the American car companies do not want Chinese brands in their market because there is no way they can compete with them.
Chinese brands just arrived in Mexico and it has been a massacre for american and European brands, a lot of car dealers have been closing lately and you can see in the streets that most new cars are Chinese. The Chinese dealers have impeccable service and the architecture is impressive. Prices are 1/3 of the European cars and 1/2 of the American Cars. The only ones that might be able to compete are japanese and Korean car companies.
“Americans Are Open To Cheap Chinese Cars”
“People don’t have money. That’s scary for companies selling expensive products.”
The issue is that there aren’t low cost cars anymore. Everything is over 25k and the used cars market is insane.
So yeah, no shit we want cheaper cars.
People will be Open to affordable cars from anyone if the traditional makers don’t start offering affordable vehicles.
Shocker. People don’t want to pay $40k + to commute to work.
A lot of people want a reasonably priced car that can commute, have enough range for something fun on the weekend, and have a stereo that isn’t total shit.
But the rub here is that it’ll be like a new Walmart opening in your town. Before too long everyone is shopping at Walmart and all the small local businesses shut down because they can’t compete with the prices and purchasing power of one of the largest corporations in the world.
Once that happens, all those workers get jobs at Walmart and then spend 80% of their paycheck buying products from Walmart. This leaves the town poor as a majority of the money circulating around gets sent out to Bentonville Arkansas where it goes into the Walton’s bank accounts to be used to hire more lawyers to get them out of yet another vehicular manslaughter charge.
This shit is how the US wound up like we are today with rampant homelessness and shit wages, but all people care about are seeing those low prices on the store shelves.
But for the most part are American cars bringing that much more value for the price? If the average American car lasted 250,000 miles with little maintenance, maybe that would be worth the price.
BYD and other Chinese manufacturers are only able to sell at these low prices because the government is paying a portion of the manufacturing costs which isn’t sustainable long term. What will happen is that they’ll continue to subsidize them until they put a bunch of competitors out of business and then end the subsidies. Their prices will shoot up, and we’ll be right back in the same situation we are now with high purchase prices. The only difference is that a lot of American manufacturing (union) jobs will have disappeared because of it.
No it’s more like Aldi and Lidl coming and opening up next to the big supermarket of the town. The local shops have already been killed by Walmart or in my country Tesco. Aldi and Lidl come in and undercut the giant and skim off a portion of the trade, and a portion of the people work there instead. The big supermarket can’t muscle them out because they’re far bigger companies than they look.
I would love to have an Aldi nearby instead of whatever Kroger behemoth I’m stuck with.
I think we ended up with rampant homelessness because banks turned housing into an investment instead of asset and your local Karen made zoning laws to keep POC. Shit wages are also pretty simple to explain stock buybacks were allowed and encouraged allowing.
Also your comment feels like it is from 2003 you have to update your propaganda periodically.
