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The withering dream of a cheap American electric car

(www.wsj.com)
152 points voisin | 6 comments | 17 Nov 24 23:52 UTC | HN request time: 0.819s | source | bottom
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latentcall ◴[18 Nov 24 16:08 UTC] No.42173727[source]▶
I would love a 10-15K BYD. I was told recently desiring a BYD is un-American when I can spend 3 times the price on a Tesla. No thanks! I’ll hold out for something truly cheap. Cars in America are insanely priced.
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rootusrootus ◴[18 Nov 24 16:20 UTC] No.42173877[source]▶
Protecting local manufacturers from cheap offshore labor is rational, especially if the offshore products are being subsidized specifically to undermine incumbents and put them out of business. I get that individual consumers want the cheapest trinket they can find, but the gov't has to be more strategic. And every country does this, including the one that would be the source of these trinkets.
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1. ricardobeat ◴[18 Nov 24 19:21 UTC] No.42175893[source]▶
The current average monthly salary in China is $3000-$4000 US dollars. This is not about cheap labour anymore but simple economies of scale.

The whole talk about subsidies is pure smoke screen. US automakers have received a lot more subsidies than their Chinese counterparts. The top chinese firm receiving government subsidies, CATL, got ~$500M USD last year. BYD is said to have received $3.5 billion in total in its lifetime. In the meantime, the US government offered $12B just last year for automakers to start making more EVs, and Ford is reported to have received a total of $33B in loans, bailouts and tax rebates.

In any case, if you could put down $3.5B and get a BYD out, everyone would be doing it, reality is a bit more complex than that.

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2. somerandomqaguy ◴[18 Nov 24 19:41 UTC] No.42176109[source]▶
??? The average BYD line autoworker earns $640 to $840 USD a month, but that require overtime; 1.5x pay on weekdays and 2x pay on weekends.

BYD Wuxi workers went on strike in 2021 because BYD was trying to restructure to eliminate overtime, which would effectively drop the workers wage to under $400 USD a month.

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3. ricardobeat ◴[18 Nov 24 23:39 UTC] No.42178478[source]▶
Which is about the same a factory worker in Mexico, building the Ford Mach-E, makes. I imagine the purchasing power in China will be a lot higher.

China currently has multiple times higher costs than countries like Vietnam. Cheap labour is not a major factor anymore.

4. ailun ◴[19 Nov 24 00:58 UTC] No.42179078[source]▶
> The current average monthly salary in China is $3000-$4000 US dollars.

Source, please. I do not believe this.

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5. presentation ◴[19 Nov 24 11:39 UTC] No.42182355[source]▶
Yeah doesn’t look true, median is more like $800 for those in private companies.

https://finance.sina.cn/2024-05-19/detail-inavuhsp2237661.d....

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6. ricardobeat ◴[19 Nov 24 19:19 UTC] No.42187081{3}[source]▶
That report says averages are $1381/month (120k RMB/year) for "non-private" employees, $800 for private (?), $3000/month in IT, $1500/month in mining. You happened to pick the lowest number.

There seem to be wildly different numbers reported online, but from a more thorough search it looks like the national median is indeed around ~$1400, while the 3k-4k range I mentioned is specifically for the Shangai area.