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this post was submitted on 27 Jun 2024
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For what it's worth, a government can absolutely subsidized an industry in an attempt to capture a foreign market.
There's a reason Japan and Korea have their own auto industries despite being next door to the largest manufacturing nation on earth, and it isn't because they're somehow making and distributing them for even less than China.
That being said, several automakers have blindfolded themselves about the type of cars people want. I do hope this threat is significant enough that automakers actually shift to mini-electric transportation options.
If not, I'd be happy enough buying a small Chinese electric even if the taxes made it equivalent to a larger "western" vehicle. Because it's what I want to have available to me and it's nice to fuck capitalists with capitalism.
It'd be nice if instead of putting massive tariffs, we would just subsidise production of comparable, small cars.
its less about the subsidies and more that budget buyers in the U.S in particular are very picky buyers.
while the federal/state EV tax credits, you can get vehicles like the Chevy Bolt for 20-22k. regardless the car still isnt that popular (meaning theres something specific about the car that buyers dont want).
for those buying used cars, theres not mamy reasons why someone would buy a say new 18k-20k EV that had many cuts in design vs an older premium EV. Used 2016 Model S for example can be found near 16k. its a new cheap car vs used premium car debate
this places a burden any any auto maker trying to make a budget car, because in order for it to sell well, they need to have razor thin margins, and sell a lot. failure to do so would spell the end of your compamy due to how many you produced.