China is subsidizing EV production and selling cars below cost. Allowing them to be sold in the US would kill the domestic EV market. How is that better for Americans?
For a few years, until the American automakers go bankrupt, as you said, then the Chinese automakers increase prices 10x.
…and the legacy auto industry gets taught a valuable lesson as companies who refused to modernize go bankrupt.
What a valuable lesson, get subsidized by an authoritarian government so that you can offer vehicles below cost. Also be sure to add spyware for the aforementioned authoritarian government.
Do you even understand what below cost means? No amount of modernization will counteract it.
They aren’t exporting them below cost, that’s why they want to export. Inside China every company tried to start an EV division because they heard Apple was doing it and assumed it must be a good idea. Now the market is topped out and the biggest companies are trying to price the smaller ones out of business (which still isn’t below manufacturing cost because China regulates that and is nervous about having tons of cars from bankrupt companies on the road). They export with a huge profit margin to make up for the domestic price war.
Well, they’re actually heavily subsidizing steel and aluminium, which are coincidentally what these Tariffs are for. It was never about EVs specifically.
“We want expensive American EVs that most people can’t afford, not cheap Chinese ones…”
China is subsidizing EV production and selling cars below cost. Allowing them to be sold in the US would kill the domestic EV market. How is that better for Americans?
wasn’t that the whole point of capitalism anyways? /s
Well the USA and just about every other nation runs a regulated Market System, not a Laissez Faire Capitalism.
Americans get cheaper EVs and the legacy auto industry gets taught a valuable lesson as companies who refused to modernize go bankrupt.
For a few years, until the American automakers go bankrupt, as you said, then the Chinese automakers increase prices 10x.
What a valuable lesson, get subsidized by an authoritarian government so that you can offer vehicles below cost. Also be sure to add spyware for the aforementioned authoritarian government.
Do you even understand what below cost means? No amount of modernization will counteract it.
Did we lose our industry when the Japanese auto manufacturers entered our market? When the Koreans did?
What’s different this time?
Americans can also buy EVs from countries other than China. America can also subsidise internal EV production.
My point is that we shouldn’t give a fuck about petrol loving manufacturers.
Respond to user demand and environmental pressure.
Don’t arrogantly assume your polluting product will remain market leader.
Don’t build ever bigger vehicles just to avoid particular regulations.
Yes. Would you like some oil industry case studies?
Have you heard of R&D investment, continual process improvement and economies of scale?
They aren’t exporting them below cost, that’s why they want to export. Inside China every company tried to start an EV division because they heard Apple was doing it and assumed it must be a good idea. Now the market is topped out and the biggest companies are trying to price the smaller ones out of business (which still isn’t below manufacturing cost because China regulates that and is nervous about having tons of cars from bankrupt companies on the road). They export with a huge profit margin to make up for the domestic price war.
Well, they’re actually heavily subsidizing steel and aluminium, which are coincidentally what these Tariffs are for. It was never about EVs specifically.
He actually doesn’t talk about EVs at all, this tariff is against cheep steel and aluminium that the CCP is subsidizing.