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Nobody in the USA wants that market. There isn’t even an interest in under 25k cars. I don’t see any issues allowing these if local manufacturers aren’t even wi

Nobody in the USA wants that market. There isn’t even an interest in under 25k cars. I don’t see any issues allowing these if local manufacturers aren’t even willing to make products at 2x the price

JumpCrisscross 3y ago
> Nobody in the USA wants that market. There isn’t even an interest in under 25k cars That doesn’t mean the market doesn’t exist. I could see these being sold in Mexico and Europe. At that point, the American car industry becomes an inefficient protected industry. American voters have limited sympathy for those in the long run when it comes to consumer goods. That said, it’s unclear if BYD can make a $10k car that meets American safety (and useless regulatory) standards.
- nothercastle 3y ago
  I mean from the manufacturer point of view, under 50k cars aren’t sufficiently profitable to be worth making. So very little R&D happens at the low end
  - JumpCrisscross 3y ago
    > under 50k cars aren’t sufficiently profitable to be worth making. So very little R&D happens at the low end The fact that both new entrants and legacy manufacturers are struggling with that production cost implies there is a structural cause for those high prices. I’m sceptical BYD can sell a car in America for $10k. I’m less sceptical that anyone else cares about the mandates that make American cars expensive.
- OtherShrezzing 3y ago
  >At that point, the American car industry becomes an inefficient protected industry. American voters have limited sympathy for those in the long run when it comes to consumer goods. Do they have little sympathy? The list of protected American industries is enormous, and has been for nearly a century. Tobacco, corn, vehicles, aerospace, the energy industry, oil & gas industry. I could write out a list as long as my arm.
  - JumpCrisscross 3y ago
    > Tobacco, corn, vehicles, aerospace, the energy industry, oil & gas industry Tobacco, corn and vehicles are the only consumer products on this list. Neither of the former is hosing American consumers. (Just taxpayers.) The last we allowed to go bankrupt (hosing shareholders) before bailing them out last time, and is the coddled industry we’re discussing.
onlyrealcuzzo 3y ago
> I don’t see any issues allowing these if local manufacturers aren’t even willing to make products at 2x the price Because how are GM and Ford supposed to pay UAW wages, return a profit, and make a car for <$20k? If people have the option, they'll buy the $10k Seagull and not pay UAW wages... It's not like GM has a 60% margin on $25k cars...
- runako 3y ago
  > Because how are GM and Ford supposed to pay UAW wages, return a profit, and make a car for <$20k? Worth noting that the the largest US EV maker is non-union and its entry-level price is ~$38k. UAW Ford sells the EV Mustang starting at $40k.
- DiggyJohnson 3y ago
  What profitable vehicles is GM selling for less than $20k?
DiggyJohnson 3y ago
There's a massive difference in under $25k vehicles. Hence the $200 billion dollar used car market. A lot of these used car purchases might have been new vehicles if the product existed, but it doesn't.

JumpCrisscross 3y ago

> Nobody in the USA wants that market. There isn’t even an interest in under 25k cars That doesn’t mean the market doesn’t exist. I could see these being sold in Mexico and Europe. At that point, the American car industry becomes an inefficient protected industry. American voters have limited sympathy for those in the long run when it comes to consumer goods. That said, it’s unclear if BYD can make a $10k car that meets American safety (and useless regulatory) standards.

nothercastle 3y ago
I mean from the manufacturer point of view, under 50k cars aren’t sufficiently profitable to be worth making. So very little R&D happens at the low end
- JumpCrisscross 3y ago
  > under 50k cars aren’t sufficiently profitable to be worth making. So very little R&D happens at the low end The fact that both new entrants and legacy manufacturers are struggling with that production cost implies there is a structural cause for those high prices. I’m sceptical BYD can sell a car in America for $10k. I’m less sceptical that anyone else cares about the mandates that make American cars expensive.
OtherShrezzing 3y ago
>At that point, the American car industry becomes an inefficient protected industry. American voters have limited sympathy for those in the long run when it comes to consumer goods. Do they have little sympathy? The list of protected American industries is enormous, and has been for nearly a century. Tobacco, corn, vehicles, aerospace, the energy industry, oil & gas industry. I could write out a list as long as my arm.
- JumpCrisscross 3y ago
  > Tobacco, corn, vehicles, aerospace, the energy industry, oil & gas industry Tobacco, corn and vehicles are the only consumer products on this list. Neither of the former is hosing American consumers. (Just taxpayers.) The last we allowed to go bankrupt (hosing shareholders) before bailing them out last time, and is the coddled industry we’re discussing.

onlyrealcuzzo 3y ago

> I don’t see any issues allowing these if local manufacturers aren’t even willing to make products at 2x the price Because how are GM and Ford supposed to pay UAW wages, return a profit, and make a car for <$20k? If people have the option, they'll buy the $10k Seagull and not pay UAW wages... It's not like GM has a 60% margin on $25k cars...

runako 3y ago
> Because how are GM and Ford supposed to pay UAW wages, return a profit, and make a car for <$20k? Worth noting that the the largest US EV maker is non-union and its entry-level price is ~$38k. UAW Ford sells the EV Mustang starting at $40k.
DiggyJohnson 3y ago
What profitable vehicles is GM selling for less than $20k?

DiggyJohnson 3y ago

There's a massive difference in under $25k vehicles. Hence the $200 billion dollar used car market. A lot of these used car purchases might have been new vehicles if the product existed, but it doesn't.