The world's carmakers are struggling to compete with China
23 days ago by return2ozma to c/world
Even if you ignore the US obsession with trucks, western manufacturers labour costs are much higher and there aren't subsidies on manufacturing EVs, only buying them. Chinese EVs get manufacturing subsidies and then in many countries they also get a local subsidy at the point of purchase. It's an underhanded tactic, the Chinese government is essentially paying people outside of China to buy Chinese EVs so western competiton would die.
they have all the manufacturing there, I'm sure all the parts are dirt cheap for them if you don't ship em cross ocean.
I'm not sure about china paying for you to buy them, many countries counter that with tariffs. I think those prices are close to natural prices given the enormous scale of china and nearby markets.
Yes, the tariffs counter the artificially low price. At least on the more expensive models, as tariffs aren't a flat fee per car like the subsidies. You're then still left with a workforce that's paid about a third if not a quarter of what they'd be paid in some European countries that manufacture cars.
If we really wanted European EVs to be competitive with Chinese, unions need to be abolished and wages lowered. Unfortunately, we ALSO want people to have good living conditions, so that's sort of a no-go.
Are you implying Chinese people do not have good living conditions?
I have been in China only a few months working on the assembly line. Work was long and tough, but the pay was good and they'd give you free housing and food. Plenty other workplaces were available if you wanted to work less hours.
ChatGPT says 10-15% of the cost of a typical car is labor
a workforce that’s paid about a third
So that would give Chinese manufactured vehicles a 6-10% price advantage
We wish
Eu should have taken on Putin's offer while it was being offered - Europe from Lisbon till Vladivostok. Free energy in exchange for technology. Is my opinion. And now it's just too late for both. China is one global winner in all areas .
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They go for next quarter profits instead of value for consumers . Stopped building affordable cars favoring trucks. Shipped car industry to China. The end
save