Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Why American automakers can't make cheap cars
https://www.nbclosangeles.com ^ | 11/13/24 | By Robert Ferris,CNBC

Posted on 11/13/2024 7:57:49 AM PST by RomanSoldier19

Cars once represented a pillar of the American dream — mobility and independence. But they've become something of a luxury product, and customers and auto dealers are growing frustrated.

The average price for a car in the U.S. is nearly $50,000, an increase of close to 30% in the past five years, according to Kelley Blue Book. Monthly payments are also near an all-time high. A record number of owners are underwater — paying more than the vehicle is worth — according to Edmunds.

Despite record profits in 2023, automakers face challenges: the need to invest billions into software and electrification as well as a global landscape where Chinese and other foreign automakers can produce cars much cheaper.

Some Chinese startups that make EVs and plug-in hybrids have a 30% cost advantage over established global automakers, even without government support, according to research firm AlixPartners.

(Excerpt) Read more at nbclosangeles.com ...


TOPICS: News/Current Events
KEYWORDS: automotive; autos; cars; trucks; war
Navigation: use the links below to view more comments.
first 1-2021-4041-60 next last


1 posted on 11/13/2024 7:57:49 AM PST by RomanSoldier19
[ Post Reply | Private Reply | View Replies]

To: RomanSoldier19

the government wont let them build a cheap car anymore, same with houses.

eliminate the regulations and someone will start making cheap cars again


2 posted on 11/13/2024 8:00:06 AM PST by TexasFreeper2009
[ Post Reply | Private Reply | To 1 | View Replies]

To: RomanSoldier19

Unions.


3 posted on 11/13/2024 8:01:29 AM PST by FlingWingFlyer (Jamaicans Haitians and Indians used to run motels and 7-11s. Now,they run Congress and the judiciary)
[ Post Reply | Private Reply | To 1 | View Replies]

To: RomanSoldier19

Overregulation and the UAW.


4 posted on 11/13/2024 8:02:06 AM PST by TBP (Decent people cannot fathom the amoral creulty of the Biden-Harris regime.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: TexasFreeper2009

I once asked a car salesman why don’t the automakers make the beautiful car bodies like they did in the 50s.

He told me, and I don’t know if this is correct but I think he probably knew, that Obama passed something that is called ‘Cafe Standards’ and that is why.


5 posted on 11/13/2024 8:02:15 AM PST by Beowulf9
[ Post Reply | Private Reply | To 2 | View Replies]

To: FlingWingFlyer

Exactly


6 posted on 11/13/2024 8:03:21 AM PST by V_TWIN (America...so great even the people that hate it refuse to leave!)
[ Post Reply | Private Reply | To 3 | View Replies]

To: RomanSoldier19

We can thank California for high price cars.


7 posted on 11/13/2024 8:03:41 AM PST by caver ( )
[ Post Reply | Private Reply | To 1 | View Replies]

To: RomanSoldier19

The premise of the article is OK, but being a crap MSM organ, its simplistic and low IQ content only provides a cheap political slogan in the exposition.

“Car makers need to invest $billions to compete with Chinese EVs”


8 posted on 11/13/2024 8:05:37 AM PST by PGR88
[ Post Reply | Private Reply | To 1 | View Replies]

To: TBP

There’s something like 5 or 6 (probably higher!) retired auto workers for every actual autoworker. Union contracts have to pay for these retirees, so they have to be high dollar.


9 posted on 11/13/2024 8:06:21 AM PST by Reily ( )
[ Post Reply | Private Reply | To 4 | View Replies]

To: TexasFreeper2009

Why American automakers can’t make cheap cars”

two reasons, very simple. CAFE and Unions.


10 posted on 11/13/2024 8:07:02 AM PST by gibsonguy
[ Post Reply | Private Reply | To 2 | View Replies]

To: RomanSoldier19

If only the elite are intended to drive, what’s the point in making cheap cars?


11 posted on 11/13/2024 8:07:16 AM PST by 9YearLurker
[ Post Reply | Private Reply | To 1 | View Replies]

To: RomanSoldier19

Sad to say but I don’t see myself buying another American made vehicle.

Too many other inexpensive higher quality options out there IMO.


12 posted on 11/13/2024 8:09:30 AM PST by V_TWIN (America...so great even the people that hate it refuse to leave!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Beowulf9

Wasn’t Obama…

“ Congress first enacted Corporate Average Fuel Economy (CAFE) standards in 1975. The standards were established in response to the 1973 oil embargo, which made the US economy dependent on foreign oil. The purpose of CAFE standards is to increase the fuel economy of cars and light trucks to reduce energy consumption.”


13 posted on 11/13/2024 8:10:08 AM PST by chuck allen
[ Post Reply | Private Reply | To 5 | View Replies]

To: Beowulf9

Obama was 17 when CAFE was introduced in 1978. They were tweaked in 2011 and other years though.


14 posted on 11/13/2024 8:11:57 AM PST by posterchild
[ Post Reply | Private Reply | To 5 | View Replies]

To: Reily

So why didn’t auto manufacturers consider this when they came up with the agreement?

That’s not the union’s fault!


15 posted on 11/13/2024 8:15:41 AM PST by SeanS
[ Post Reply | Private Reply | To 9 | View Replies]

To: RomanSoldier19

Here’s a clue - the government prevents it and ‘we the People’ allow it to happen.

The government sets safety standards that are expensive to meet. NHTSA gives NCAP ratings (non-binding but influential) and also sets Federal Motor Vehicle Safety Standards, which also are costly to meet. Those in turn influence the non-governmental IIHS standards (which insurers base rates on). And of course all concerned parties including the auto industry have legions of lobbyists.

And then there are the government’s “CAFE” gas mileage requirements, which require all kinds of techologies to meet. Keeping in mind that CAFE standards were introduced to help with energy independence and then got coopted to fight carbon dioxide, a benign gas that the Commies use to Fake Science to claim is a “pollutant”


16 posted on 11/13/2024 8:15:43 AM PST by Stingray51 ( )
[ Post Reply | Private Reply | To 1 | View Replies]

To: RomanSoldier19
I've heard that at least half of all the complicated stuff under the hood is there because the government mandates it.
Without those mandates, cars would be cheaper, simpler, more reliable and (believe it or not) more fuel efficient.

Car experts, feel free to correct me here.

17 posted on 11/13/2024 8:16:15 AM PST by BitWielder1 (I'd rather have Unequal Wealth than Equal Poverty.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: RomanSoldier19

they can, they don’t want to...


18 posted on 11/13/2024 8:16:28 AM PST by Chode (there is no fall back position, there's no rally point, there is no LZ... we're on our own. #FJB)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Stingray51
"... the government prevents it and ‘we the People’ allow it to happen...."

Then 'We the People" can change it. We just proved it to ourselves on the 5th. Nothing is impossible, or are we going to decide to ignore our lying eyes? The tide has turned. Push them back under their rocks. Call your representatives and senators and start demanding these regulations be undone and unchain the American auto industry.

19 posted on 11/13/2024 8:18:51 AM PST by Frank Drebin (And don't ever let me catch you guys in America!)
[ Post Reply | Private Reply | To 16 | View Replies]

To: All

unions and autoworkers are overpaid

it does not take that much intelligence to put a screw in.


20 posted on 11/13/2024 8:19:28 AM PST by VAFreedom (Wuhan Pneumonia-Made by CCP, Copyright Xi Jingping)
[ Post Reply | Private Reply | To 14 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021-4041-60 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson