They are cheap because China government subsidizes cost.
They are cheap because China government subsidizes cost.
In all the similar ways the Big Three and Tesla have been subsidized over the years. All China did was correctly pick EV's as the future of automobiles and subsidize those companies while the US is actively subsidizing and supporting ICE automobiles and their supporting tech. America was stupid.
But in China, the subsidized price is passed to the consumer. So the consumer pays thousands less. I don’t see subsidies in NA being passed on to consumers. They absorbed by the company.
Partly correct, the last time the Big Three got big subsidies they just bought back shares, benefitting remaining shareholders (aka company owners). The fact that North American consumers accepted getting suckered doesn't change that the company was subsidized.
Subsidising for your own market is one thing, subsidising in order to price out other markets is another thing entirely.
Most Chinese subsidies are sales subsidies to chinese consumers. The rest are the same kinds of subsidies we do too, basic r-d subs, guaranteed loans, etc. They just picked better tech, and they have far surpassed North American mfg technology by producing more and better engineers.
They are also have the better technology incubation centre, so in China anyone can try to build a car or a phone but only the fittest survive. America is now sclerotic. It used to be the incubator. The danger with China is the legal connection to the PRC government.
I guess what I'm saying is that they're just the only ones in the card game so it's not so much they're flooding the market, it's that they're basically the only ones selling cars for the average and poorer consumer.
...and insisting on going further and further backwards.
Okay, let the Chinese government subsidize my car please...
If you are a resident/ citizen of China they are.
That would be sweet. I think if we look to Australia and Mexico where these companies have good penetration, we'll get a vague idea of what they'd cost here pre-tax, the non-luxury models.
That too. Same with the steel they insist on dumping in other countries. Outcompete your competitors with subsidised product so that your competitors shut down and then enjoy the relative monopoly and jack prices up.