tomder55
Aug 24, 2023, 05:06 AM
If Clueless Joe wants a lesson in what happens when you try to buck markets and substitute sound economics with a forced economy; all he need do it see where Chinese made EVs end up.
Abandoned electric cars piling up in China's 'EV graveyards' | The World - YouTube (https://www.youtube.com/watch?v=m0on2ZG9CDM)
Much like Clueless Joe ;the Chinese government thought that they could force acceptance of EVs down the people's throats. They subsidized the market to the tune of $20 billion in 2023 and have unveiled a plan to prop up the industry with another $72 billion going forward.
China unveils $72 billion tax break for EVs, other green cars to spur demand | Reuters (https://www.reuters.com/business/autos-transportation/china-announces-extension-purchase-tax-break-nevs-until-2027-2023-06-21/)
There is no way responsible business people would risk their or their shareholder's capital on a market without some expectation of profit. When the government hands out the cash then the risks are not as great .So yeah they jump at the chance to risk other people's money. Quality of the product becomes a secondary concern.
China stopped propping up the industry in 2019 leaving the manufacturers to hold the bag Only 20% of the carmakers are still in business. Their product rusts in boneyards.
Can that happen here even with the Inflation Creation Act subsidizing the hell out of the industry ?
Of course . It is happening now.
The nationwide supply of EVs in stock has swelled nearly 350% this year, to more than 92,000 units.
That's a 92-day supply — roughly three months' worth of EVs, and nearly twice the industry average.
Electric car inventory grows as sales struggles to keep up (axios.com) (https://www.axios.com/2023/07/10/unsold-electric-cars-are-piling-up-on-dealer-lots)
Abandoned electric cars piling up in China's 'EV graveyards' | The World - YouTube (https://www.youtube.com/watch?v=m0on2ZG9CDM)
Much like Clueless Joe ;the Chinese government thought that they could force acceptance of EVs down the people's throats. They subsidized the market to the tune of $20 billion in 2023 and have unveiled a plan to prop up the industry with another $72 billion going forward.
China unveils $72 billion tax break for EVs, other green cars to spur demand | Reuters (https://www.reuters.com/business/autos-transportation/china-announces-extension-purchase-tax-break-nevs-until-2027-2023-06-21/)
There is no way responsible business people would risk their or their shareholder's capital on a market without some expectation of profit. When the government hands out the cash then the risks are not as great .So yeah they jump at the chance to risk other people's money. Quality of the product becomes a secondary concern.
China stopped propping up the industry in 2019 leaving the manufacturers to hold the bag Only 20% of the carmakers are still in business. Their product rusts in boneyards.
Can that happen here even with the Inflation Creation Act subsidizing the hell out of the industry ?
Of course . It is happening now.
The nationwide supply of EVs in stock has swelled nearly 350% this year, to more than 92,000 units.
That's a 92-day supply — roughly three months' worth of EVs, and nearly twice the industry average.
Electric car inventory grows as sales struggles to keep up (axios.com) (https://www.axios.com/2023/07/10/unsold-electric-cars-are-piling-up-on-dealer-lots)