Hacker News new | ask | show | jobs
by AngryData 1 day ago
I don't believe at all that China will always be cheaper. And in many cases I wonder if that is even true right now. Labor costs aren't what is keeping US manufacturing cost high, it is capitalist's demands for high and ever increasing profit margins and managerial bloat. Labor is only a small part of the cost of a vehicle. Workers wouldn't care if company profit margins were smaller or if the vehicles they help manufacturer are sold for less than the maximum possible, but the c-suites and investors do.
1 comments

According to ChatGPT the labor cost per vehicle is more than twice as high in the US versus China. $1,341/vehicle vs $585/vehicle

https://chatgpt.com/s/t_6a292f0205ec819182b54e48ce9702a3

For vehicles in the $20-$100k price range? That feels too trivial to make a difference, is it correct or just a number chatgpt invented?
I think it's based on a few sources + page 6 from here https://www.oliverwyman.com/content/dam/oliver-wyman/v2/publ...
Still: if the number is that small a fraction of the overall cost, it barely matters which country it's made in? That's basically the cost of selecting a non-standard paint colour option, by the time you look at final price?