By “legacy manufacturers” I mean those who are stuck on internal combustion engines, and focusing on large trucks and luxury trims.
Average new car price in the US has greatly outpaced inflation and is currently almost $50k, closing in on a full year gross average income. Most people can’t afford that. For that rice you get old technology engine, old technology transmission, same features we’ve had for years.
Yet a replacement for my Subaru is much cheaper, only a little over what I paid nine years ago. It has safety features, electronics, and transmission more innovative than us made cars costing twice as much. Many more people can afford this vehicle, and it’s similar in price to what Chinese cars are selling for in Europe.
We don’t need to compete with $4k cars. We need to compete with cars affordable on average salaries, with new features and unique capabilities.
While the transition to electric vehicles has been politicized, it’s coming and it’s inexorable. “Legacy manufacturers” are those avoiding that change
Yet Chinese cars that meet US standards are quite a bit more than that. Where such vehicles are sold in developed markets, they are more like €30-40k
By “legacy manufacturers” I mean those who are stuck on internal combustion engines, and focusing on large trucks and luxury trims.
Average new car price in the US has greatly outpaced inflation and is currently almost $50k, closing in on a full year gross average income. Most people can’t afford that. For that rice you get old technology engine, old technology transmission, same features we’ve had for years.
Yet a replacement for my Subaru is much cheaper, only a little over what I paid nine years ago. It has safety features, electronics, and transmission more innovative than us made cars costing twice as much. Many more people can afford this vehicle, and it’s similar in price to what Chinese cars are selling for in Europe.
We don’t need to compete with $4k cars. We need to compete with cars affordable on average salaries, with new features and unique capabilities.
While the transition to electric vehicles has been politicized, it’s coming and it’s inexorable. “Legacy manufacturers” are those avoiding that change