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Fear of cheap Chinese EVs spurs automaker dash for affordable cars (www.reuters.com)
submitted 2 years ago by to c/technology@lemmy.world
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[–] 17 points 2 years ago (1 child)

Not true. Most products aren't the cost of the materials. There are a lot of included expenses in the price of a product like the cost of labor. They're also not the same cars.

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  • [–] 8 points 2 years ago (1 child)

    I am well aware that there are costs beside materials and labor. In my company, I'm part of those other costs - I'm R&D. The point is still: Why shall we bear all those costs and others don't? Don't expect people being happy about being handled gross unfair.

    They’re also not the same cars.

    Yes, there are differences. But they are small, and could be incorporated in a low-cost version of European cars, too - if they actually want a low cost version here.

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  • [–] -1 points 2 years ago* (1 child)

    Why shall we bear all those costs and others don’t

    That sounds like standard supply demand. If you can bear it, and there is no alternative, you will. But moreover as was mentioned there are reasons that may require a product being different prices in different markets as operating expenses are not the same. The simple cost of launching a product in different markets incurs different costs, and thus different prices. That's a trivial example, and with vehicles it gets really complex at the regulatory level, especially in regulatory-rich countries which are common in the EU.

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  • [–] 5 points 2 years ago (1 child)

    If you can bear it, and there is no alternative, you will.

    And that is the point that will break the European car makers necks. The Chinese just start being alternatives, just like Japanese cars were in the 80s and 90s.

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  • [–] 1 point 2 years ago

    To give it credit, Japanese cars are now among the best in class, and can be enjoyed on a global market at a "reasonable" price. Took them a few decades to get there though. When/if Chinese manufacturers get to that level - that would be a win for the common consumer anywhere. And European companies with their trend to sell less, but more expensive, cars, will likely be outcompeted.

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