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this post was submitted on 10 Jul 2025
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American manufacturing seems very incapable of change. If things worked this way for decades, why change it? Meanwhile the world moved on and they ask themselves why doesn't anyone wanna buy american...?
You think Americans can't change, just look at German Automakers. They are stuck in Perpetual denial. VW only moved electric because of the massive diesel scandal, otherwise they also would have been like every other car manufacturer.
Yes, but nobody ever expected Germany to be quick and adapt. Germany does not do that in general. It takes something that exists, perfects it, and then sells the perfection of the existing thing, ideally until really not a single person on the world needs it anymore. US on the other hand, has the reputation where innovation begins and does wonders. I am asking myself, where is the innovation in their autoindustry? Last thing was actually Tesla itself, when they started producing first electric cars.
It is the same situation, but the expectation is completely opposite.
Even if they changed how would they win?
They're just too expensive to manufacture as compared to chinese ones.
They could try going for quality or features.
But instead they are only going for size, what 94% of the world does not care or want. (this includes the 5% of Americans)
American car companies are focusing on their highest profit center, massive trucks. Milking that market for the short term.
….. regardless of their long term survival. It seems extremely short sighted.
American companies exist to maximize shareholder value. Remember that. There is no company, doing anything, for the better of the world or humanity. At least not as the primary motivation.
Dunno, seems like a global problem. European car companies are scared too. And they don't make those big cars.
The only issue I see is that china is very hostile with how it deals with other countries, otherwise this is just the trend of how things work out. In the 80s, it was the japanese car industry.
They've got to keep their profit margins, or the CEO's and shareholders might need to take a paycut.
Oh no! Anyway...
I am union so don’t misunderstand the comment, but doesn’t BYD rely heavily on terribly paid non-union labor to reach it’s price advantage?
No, it relies on massive automation. Similary their solar industry etc
For example
https://www.theenergymix.com/automation-not-cheap-labour-drives-chinas-solar-and-battery-edge-ritchie/
It brings up a valid point. Assembly line manufacturing will soon require massive automation lines to remain profitable, and without massive government assistance in not just money, but education and training, these kinds of automation factories will likely never be fully realized here.
They don't need any government assistance, they just need to take the millions they pay out to stakeholders, and invest them into automation. The money is there, just being handed out to a few people. Why should the government pay for something that sits on tons of cash but won't use it?
Tesla somehow manages to do well(at least prior to the nazi events). Still at a good price in Norway.
But all other manufacturers have dragged their feet with EVs, and that price cost of starting is large enough that they are in trouble. I'm not a huge fan of China, but they did the investment and are ahead exactly because of that (and crazy subsidies). Being left behind is their own fault imo, and I think that applies a lot to EU as well. Eg. WV.
If they are too expensive due to cost of labor, they can do, look at other comments, increased automation.
With automation China's advantages over US are mostly in the bureaucratic efficiency area. Both in the government's parts interacting with big companies and in the companies themselves.
US big companies are just too used to preferential treatment and solving market problems with lobbying, which worked when they were the spearhead of progress or something.
Expensive is not a problem it it's followed by the appropriate quality. Also, US should be far more able to use tech to automate and make efficient, same as China can use cheap labour. In the end, a robot is a one-time fee, doesn't get sick, and can work 24/7, easy and fast to learn new processes. Long term a robot will always outpeform a human.