4 ms·
> If they sold well in the US, they would bring in more of them. But they don't. The auto industry would rather use its limited assembly line capacity for the
by danans 1y ago
> If they sold well in the US, they would bring in more of them. But they don't.
The auto industry would rather use its limited assembly line capacity for the highest margin products, which are large luxury internal combustion vehicles.
We have long been in the era of lean manufacturing, where assets like factories are hyper-optimized for returns to capital, not for making products to serve all needs or desires. Why lower your gross margins by investing in more factory capacity to make affordable cars? You'd rather put your capital into the Mag-7 to get a higher rate of return.
It also makes sense because with growing inequality in the US, the well-off (or the financially irresponsible) are the only people who buy new cars anyways, so the manufacturers make cars for them.
This is also a big part of the reason they make EVs (which are disproportionately higher end or luxury): because they know that EV buyers are likely to be more well off. The environmental benefits are secondary, and the auto industry has never cared much about lowering TCO or energy costs (those things benefit the EV driver, not the car manufacturer).
- potato3732842 1y agoThe Toyota fanboy mob will be along shortly to downvote you for saying bad things about our lord and savior lean manufacturing. (joking, but not as much as I want to be)
- maxerickson 1y agoIs it hard to get a Corolla?
- danans 1y ago> saying bad things about our lord and savior lean manufacturing. I'm not saying it's good or bad, it just is, and car companies don't exist to make affordable new products for everyone. "Obese" manufacturing won't result in more affordable cars either, not while housing, education and healthcare continue to eat away at Americans' stagnant income growth. If affordable transportation is the goal, we probably need to get past personal car ownership.
- taneq 1y agoPeople talking about lean manufacturing never seem to mention the outsourced risk involved. That ‘wasted’ inventory that you have laying around is actually insurance against supply chain shocks. And outsourcing manufacturing of critical components creates uncontrolled existential risks for your business.