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by lotsofpulp 32 days ago
> And all that says nothing of the fact cheap labor alone doesn’t make a better car. But the fact China can both make a better car (EV) and with lower labor costs really shows how dependent US automakers are on market inefficiencies.

I don’t understand this. Why would COGS impact quality? Are Chinese people inherently inferior “Western” people?

The market inefficiency is partly the difference in price of labor, which is being made more efficient by Chinese manufacturers succeeding.

1 comments

I looked it up, and the key thing in favour of companies like BYD over the US companies - isn't (just) cheap labour - it's vertical integration.

BYD owns the mines, the batteries, the cars, the USA doesn't have that available, and are having to force other countries to provide their lithium/rare earth deposits to US companies in order to try and become competitive.