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Biden really, really doesn’t want China to flood the US with cheap EVs
(www.theverge.com)
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this post was submitted on 10 May 2024
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Just producing EV versions of Honda Fit or Ford Fiesta like what the Chinese EV makers do is enough. Instead, they keep producing EVs with luxury features (and high price tags) then surprised people won't buy them without subsidy.
You're describing the Bolt and it sells terribly here. The Model 3 outsells it 20:1 in any given month.
The Bolt isn't cheap though (almost 2x of Honda Fit price), and wasn't produced in sufficient quantity. The Chinese EV companies are somehow able to produce entry level EV models with minimal features at a price cheaper than Honda Fit and they're selling like hot cakes both domestically and in neighboring Asian countries.
With the $7500 credit, the Bolt is the same price or slightly cheaper than the Fit when you account for inflation.
China is able to sell these vehicles for this cheap because the government is giving these companies cash to sell them at these artificially low prices. That's the whole point of this discussion and the proposed tariffs as none of the competition will be receiving subsidies at these levels in order to compete. China is also known for lax worker protections which helps to drive the costs down further at the expense of the workforce and is not something they'll be able to do if they manufacture here.
Are they still doing the EV credit thing?
Subsidy definitely helps, but those Chinese car manufacturers are able to squeeze their parts suppliers hard, so they're able to sell their cars cheaper even without subsidy. For example, their gasoline cars are about half the price of comparable Japanese models, even with engines sourced from GM/Ford.