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Efficient high volume and even precision manufacturing are no longer moats for the German industrial export industry to protect against Chinese competition. Ch

Efficient high volume and even precision manufacturing are no longer moats for the German industrial export industry to protect against Chinese competition. Chinese EV brands innovated vertically-integrated business models and, unencumbered by legacy infrastructure and large unionized workforces, built highly automated factories from scratch - their low cost structures and huge state subsidies have allowed them to profitably sell pretty nice vehicles below VW's cost. What does Europe have to offer China now? The cache of "attainable luxury" imports (Gucci, LV, Nike, Starbucks) is fading fast as local brands gain in prestige...

noah_buddy 2y ago
I think the answer is basically nothing besides largescale consumption. The interesting thing to see is whether China turns inward or projects power outward.
rich_sasha 2y ago
What is quality control like on Chinese goods these days? I'm not presuming it's bad, I just don't know. That said, my experience with VW specifically isn't great either. Plus, the 30bn losses due to scammy diesel gate is massive compared to their market cap of 50bn. There are other brands I'd be more sad about. Still, very rough for their employees
- xadhominemx 2y ago
  Depends on the price point. Cheap Chinese stuff is poor quality. More expensive goods are just as good as those marketed by western brands (and are often made in the same factories)
- wenc 2y ago
  German cars are notoriously unreliable (well, a common refrain among owners is -- they are reliable as long as you spends lots of money maintaining them, and invariably anecdotes of a BMW 19xx still running like a champ will be offered. But on average, this is not true. You can ask mechanics.) German cars are designed to be fun to drive -- and they are! But their reliability to a layman -- not a car enthusiast, but a layman who doesn't have the inclination to baby their cars -- is not the best. Italian cars like Fiats are even worse. But boy are they beautiful. Different design goals. p.s. also if you baby any car, it will be reliable. But your mechanic bills will be substantial.

noah_buddy 2y ago

I think the answer is basically nothing besides largescale consumption. The interesting thing to see is whether China turns inward or projects power outward.

rich_sasha 2y ago

What is quality control like on Chinese goods these days? I'm not presuming it's bad, I just don't know. That said, my experience with VW specifically isn't great either. Plus, the 30bn losses due to scammy diesel gate is massive compared to their market cap of 50bn. There are other brands I'd be more sad about. Still, very rough for their employees

xadhominemx 2y ago
Depends on the price point. Cheap Chinese stuff is poor quality. More expensive goods are just as good as those marketed by western brands (and are often made in the same factories)
wenc 2y ago
German cars are notoriously unreliable (well, a common refrain among owners is -- they are reliable as long as you spends lots of money maintaining them, and invariably anecdotes of a BMW 19xx still running like a champ will be offered. But on average, this is not true. You can ask mechanics.) German cars are designed to be fun to drive -- and they are! But their reliability to a layman -- not a car enthusiast, but a layman who doesn't have the inclination to baby their cars -- is not the best. Italian cars like Fiats are even worse. But boy are they beautiful. Different design goals. p.s. also if you baby any car, it will be reliable. But your mechanic bills will be substantial.