Comparing costs between Western and Chinese automakers in China shows that subsidies matter, but they’re only part of the story. Chinese carmakers benefit from fundamentally lower cost structures, driven by tighter control over their supply chains and a stronger focus on the China market—both of which significantly reduce operating costs. They also make more aggressive use of supplier-backed financing
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Nothing in here about IP theft or slave labor. Awful suspicious.
Government subsidies.
Also, they might be selling your data.
Also may have stolen rnd instead of doing it themselves. May have resources locally not sources abroad, might have slightly different labour laws that allow more productivity without compensation, maybe lower wages? Could be a combination of lots of reasons.
Just like every US manufacturer.
I don’t know if you heard about Elon and Donald’s lovers’ quarrel, but there’s no more US government EV subisidies.
Do you honestly believe that there weren’t any car subsidies before EVs? They may not be as direct as the recent EV subsidies, but there are billions of dollars artificially propping up the industry.
The US spends over $660 Billion annually on fossil fuel subsidies, a massive chunk of that is related to vehicle fuels. An estimated $20k per gas vehicle over its lifetime.
How about the $60 billion bailouts GM received that they never paid back?
I thought they did pay those back.
I believe they’re referring to the harvesting and sale of user data.
Chinese manufacturers look like they’ve figured out vertical integration and manufacturing automation. BYD makes a TON of items themselves, from battery to drive-trains, tires, telematics, sensors, etc. And they can iterate FAST. It also means their battery division sells to the car division at cost, whereas a different manufacturer would have to pay cost + profit. Also, robots.
There’s no way a Ford, Toyota, or VW will ever go back to making their own components.
