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The scary thing for US car manufacturers isn't necessarily Chinese imports in the US, which import tariffs should prevent, but the notion of BYD partnering with
by jillesvangurp 3y ago
The scary thing for US car manufacturers isn't necessarily Chinese imports in the US, which import tariffs should prevent, but the notion of BYD partnering with or acquiring existing US manufacturers and then starting to produce very cheap cars inside the US. This is what the Japanese did and later other manufacturers. Fiat bought Chrysler at some point and now Stellantis (which Fiat/Chrysler merged into) is producing lots of traditional US car brands in the US.
The notion that EVs are now feasible at low cost is what is making car manufacturers nervous. Because these Chinese cars are 1) very good 2) much cheaper than other manufacturers would be able to deliver.
There's a lot being said about subsidies. That's no excuse. The US has a 1 trillion $ IRA package. And a history of repeatedly bailing out bankrupt car manufacturers. They have and have had plenty of government support over the years. The lack of support is not the issue.
In the end government support is a means to an end: figuring out how to build lots of cheap electrical vehicles. The Chinese seem to be doing quite well on that front.
- deleted 3y ago[deleted]