I was curious to see what the hype is all about so I watched this Aussie's perspective. I was astonished.
Key takeaways:
Key takeaways:
- China has become the undisputed leader in automotive technology
- Chinese battery tech is years ahead of competition
- Euro/US products are hopelessly uncompetitive and the gap is widening, even before considering cost. Japanese brands are still trying (kudos) but barely holding on.
- When you add speed of innovation and cost to the equation, it's game over for the rest of the world.
- The government thinks it has no choice but to protect domestic auto industry and puts in place increasing trade barriers
- US/EU consumers will miss out on inexpensive, modern alternatives and will be stuck with overpriced, obsolete legacy tech.
- The rest of the world (South/Central America, Asia, Australia) will enjoy the benefits of affordable, innovative vehicles. EU/US autos will all but disappear from their fleets.
- Export potential of western economies will drop further
- A massive drag on the economy. Poor affordability for consumers and companies. Huge misallocation of resources that could be better used elsewhere.
- US automakers have publicly stated that they're not interested in producing large volumes of affordable vehicles. Their focus is entirely profit. They all seem to want to become Rolls-Royce and Ferrari... niche but fringe manufacturers.
- US automakers (excl Tesla) have all but given up on cars (sedans, coupes). If they're not willing to even try and compete in this market, what is the protectionism protecting?
- Extended protectionism will cause domestic tech to fall increasingly further behind until we will look like Cuba to the rest of the world.
- Perhaps the answer is to do what China did in the 90s. Remove tariffs but mandate Chinese companies to form 50/50 joint ventures with domestic companies and force transfer of their clearly superior technology back to us.
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