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Regulations like emissions limits can also cause this. GM has supposedly been know to sell some of its electrics at a loss simply to help meet the ratio require
by jjeaff 7y ago
Regulations like emissions limits can also cause this. GM has supposedly been know to sell some of its electrics at a loss simply to help meet the ratio requirements of the EPA so they can sell more big vehicles.
- salawat 7y agoAgain, this is a consequence of the statement I made before regarding >the financial industry converging on whichever form most effectively sidesteps the current regulatory regime. I should probably have phrased it to industry in general, but regardless, I stand by my original point. The automotive industry accepts taking a loss through sub-optimal implementations of regulatorally incentivized models in order to optimize on the most profitable model segment. Capitalism will converge in the direction of a net negative naturally without active efforts to reign in it's tendency toward fiscal optimization at all costs. I'm not even being controversial and saying socialism/Marxism is the way. (They aren't; in case anyone is wondering). I'm just pointing out what actually happens.