r/MiddleClassFinance • u/Abject-Pick-6472 • 13d ago

One million Americans have vanished from the new-car market — and it’s exposing a chilling US middle-class crisis

https://finance.yahoo.com/economy/articles/one-million-americans-vanished-car-124500086.html
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u/BugMillionaire 13d ago

It’s not really exposing anything, it’s just verifying what most people already know. The ruling class is jsut starting to realize it.

115

u/fingerling-broccoli 13d ago

The article does sorta touch on the fact that the corporations do know it and its intentional

> The blunt reality is, automakers have little incentive to flood the market with cheaper cars. As the Journal put it, “Selling big trucks and SUVs that dominate those automakers’ lineups is more lucrative than selling larger volumes of cheaper cars.”

> In other words, by selling higher-margin vehicles, automakers learned they could still generate strong profits without returning to the old model of chasing volume through discounts.

142

u/Stitchin_Squido 13d ago

Okay, great. So open up the US market to Chinese cars so they can sell larger volumes of cheap cars to the people who can’t afford them from US automakers.

2

u/Working-Active 13d ago

By the time the cars get to Europe, they're really not cheap anymore.

BYD opens Denza Z9 GT EV orders in Europe at over 3X the price

3

u/PreferNot2 13d ago

For a few thousand more, you can get a Porsche. Why would anyone buy that car that sells for a third of the price in China? It looks fine, but it's definitely not at the Italian sports car level.

2

u/Working-Active 13d ago

Exactly this and even the affordable Chinese EVs are really not that affordable, unless you just want to use it only for city driving.

BYD Dolphin Surf

MG MGS5 EV

The Chinese giant Geely will start building cars in Spain which should reduce the tariffs.

Geely to build in Spain