[yawpitch]

If we tightened safety regulations so that every car was as safe as the S-Class then cars as safe as the S-Class would dramatically drop in price, simply by virtue of there being more of them.

As for where you draw the line on safety regulations, the optimum answer is always “considerably past the point that business owners start complaining about excessive regulation”.

[kube-system]

The S-class is a bad example, because it is expensive for other confounding reasons.

However, all else equal, a vehicle with more active and passive safety features and more safety engineering is more expensive. Even after you account for economies of scale.

For example, airbags are extremely mass produced and have just about as much economies of scale as possible. But, in countries where they are not mandated, you can still find cars offered without them, because they are cheaper. The same is also true for vehicles without UHHS safety cages, ABS, stability control, etc. All of these things cost money.

[yawpitch]

Take all the safety items that do actually contribute to the S-Class sticker price, now mandate them in all cars. The price of all cars goes up, sure, but also the cost of a car that’s as safe as the S-Class is goes down. What you’ve done is decreased the cost of having the more safe option while eliminating the less safe option, precisely because most of those currently premium / luxury items simply haven’t benefitted at all from economies of scale. The airbag example proves the point, inside any country that mandates them. Are there cheaper and more dangerous cars available without them? Sure… but not inside the borders of any country that cares about the survival of its citizens.

We should all live in countries that mandate extremely high safety standards and spend their time worrying about how to raise the average income to compensate, rather than in a country that accepts unreasonable risk just to keep wages unreasonably low.

[FredPret]

You don’t think the input costs have something to do with the price of an S Class?

Pricing is due to both supply and demand - there can’t be a sustainable supply of a expensive-to-make cars at loss-making prices