ScooterAsheville
Well-Known Member
- First Name
- Scooter
- Joined
- Jul 25, 2025
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- 12
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- Asheville, NC
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- Maverick, Volvo
I hear a lot of takes on the Chinese from a lot of professional talking heads. Some convince me, some don't.
For example, there's the argument that the only reason the Chinese can deliver so much for so little is that they're heavily subsidized in a million ways. Including dirt cheap labor and horrible labor laws. The Chinese state also standardizes components, meaning you don't have 30 designs for any given part.
Then there is 10x6 ethos, where Chinese work ten hours a day, six days a week. As famously depicted in the award winning movie, "American Factory".
Then there is the fact that the Chinese graduate 200,000 engineers a year, dwarfing the output of the USA (we're all getting frigging marketing degrees, apparently).
Then there is the fact that the Chinese deliberately targeted BEVs as a national priority, and are pronounced to have a decade lead on the West. Meanwhile, we are a nation of automotive Luddites, wanting nothing to change. In the USA - enriching the oil and coal magnates is the only current priority, AFAICS.
So the arguments go back and forth. One side says China can't win in a fair fight, meaning they can't build cars in the USA to our standards, with our labor and parts, and keep the low prices. Another side says "oh yes they can". And yet another side, mainly consumers, says "why should I give a rat's ass about protecting the American auto industry - I want a great cheap car". Canada, Austrailia, South America, most of the undeveloped world - those are all examples of that last voice. And then another voice loudly says "automaking (manufacturing) is the backbone of a strong nation".
The most important thing about China is that their car market DWARFS ours. And the auto industry is all about global scale. So fine, lock them out. Have an average transaction price of $65,000 in a few years, gasoline vehicles only, while the rest of the world is swimming in $15,000 BEVs from China, subsidized or not, that keep the US makers pinned inside our borders - totally uncompetitive.
Farley understand this. He knows Ford either competes globally or diminishes to a USA-only maker of big trucks and SUVs, existing only because they are protected by tariffs and other barriers.
Choose your own point-of-view. Said differently, choose your poison.
For example, there's the argument that the only reason the Chinese can deliver so much for so little is that they're heavily subsidized in a million ways. Including dirt cheap labor and horrible labor laws. The Chinese state also standardizes components, meaning you don't have 30 designs for any given part.
Then there is 10x6 ethos, where Chinese work ten hours a day, six days a week. As famously depicted in the award winning movie, "American Factory".
Then there is the fact that the Chinese graduate 200,000 engineers a year, dwarfing the output of the USA (we're all getting frigging marketing degrees, apparently).
Then there is the fact that the Chinese deliberately targeted BEVs as a national priority, and are pronounced to have a decade lead on the West. Meanwhile, we are a nation of automotive Luddites, wanting nothing to change. In the USA - enriching the oil and coal magnates is the only current priority, AFAICS.
So the arguments go back and forth. One side says China can't win in a fair fight, meaning they can't build cars in the USA to our standards, with our labor and parts, and keep the low prices. Another side says "oh yes they can". And yet another side, mainly consumers, says "why should I give a rat's ass about protecting the American auto industry - I want a great cheap car". Canada, Austrailia, South America, most of the undeveloped world - those are all examples of that last voice. And then another voice loudly says "automaking (manufacturing) is the backbone of a strong nation".
The most important thing about China is that their car market DWARFS ours. And the auto industry is all about global scale. So fine, lock them out. Have an average transaction price of $65,000 in a few years, gasoline vehicles only, while the rest of the world is swimming in $15,000 BEVs from China, subsidized or not, that keep the US makers pinned inside our borders - totally uncompetitive.
Farley understand this. He knows Ford either competes globally or diminishes to a USA-only maker of big trucks and SUVs, existing only because they are protected by tariffs and other barriers.
Choose your own point-of-view. Said differently, choose your poison.