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China's carmakers are heading for a crash

(www.reuters.com)
18 points thelastgallon | 4 comments | 06 Sep 25 17:16 UTC | HN request time: 0.633s | source
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SilverElfin ◴[06 Sep 25 17:44 UTC] No.45151354[source]▶
What does this mean for American car makers? It’s odd that cars are getting pricier and people keep buying them. A family SUV costs 50k now. At some point with unemployment growing, this will crater. And American car makers won’t be able to sustain their expenses, like paying workers at current rates.
replies(1): >>45151592 #
jwilber ◴[06 Sep 25 18:16 UTC] No.45151592[source]▶
Right? Prices skyrocketed for all cars after COVID and never came down. At least some manufacturers have seen a pretty big increase in quality lately (Kia). Can’t say the same for our domestic manufacturers tbh.

I wonder how much of this language is just anti-Chinese. “Slumping” costs for price decreases. Whatever the outcome, it’s clear I’d much rather prefer to be purchasing a car in China than America at the moment. Probably nicer roads to drive on, too, if I’m being honest.

replies(2): >>45152030 #>>45152602 #
1. Fade_Dance ◴[06 Sep 25 19:09 UTC] No.45152030[source]▶
>Prices skyrocketed for all cars after COVID

Along with everything else, because of inflation.

Ex: New Chevy Trax is within $1k of a 2011 Ford Focus MSRP, and considerably lower than something like a 2011 Ford Fusion sedan MSRP inflation adjusted.

Americans do not buy econo-models. Chevy Spark, Nissan Versa, Mitsubishi Mirage, list goes on. Almost all of them had bad sales numbers, and most are now gone from the market because of that.

I am of the opposite opinion, and think that the latest wave of cheap compact crossovers is by far the best entry level offering from US companies in years. Heck, even Buick is doing well with the Envista. I'm definitely target market (drive a sub 100hp asian compact no longer offered in US markets), and honestly think the new 3cyl Trax is actually an appealing cheap little vehicle, which I never would have considered before from a US manufacturer.

replies(2): >>45152518 #>>45161484 #
2. SilverElfin ◴[06 Sep 25 20:18 UTC] No.45152518[source]▶
Are there any cars left under 20k?
replies(1): >>45152615 #
3. linotype ◴[06 Sep 25 20:32 UTC] No.45152615[source]▶
At some point there will be no car for sale less than $50k. Without factoring in inflation, price is meaningless.
4. jwilber ◴[07 Sep 25 19:41 UTC] No.45161484[source]▶
In one year alone, used car prices rose over 40%. That market has not corrected itself since then.

That is not as simple to dismiss as, “prices rise everywhere: inflation.”

https://www.collegecounts529.com/wp-content/uploads/2023/08/...

https://www.consumeraffairs.com/news/used-car-prices-have-su...