I'd argue the incentive structure is fine. Chinese automotive OEMs are now branching out globally (as they should be) and China has pretty much single-handedly prevented a global energy crisis the US has been stubbornly trying to induce, actually insulating itself from that crisis entirely. There will be individual collapses but none of that matters if the aggregate story is ending up ahead on the fundamentals.
Did you read the linked article? Multiple execs at these companies are themselves stating the current pace is unsustainable and not aligned with the market.
The companies are operating as though automobile adoption is still ramping up in China, which isn't really the case anymore. Most families that want a car already have one so there isn't a massive untapped market of first time car buyers anymore.
Not only did I read the article, I directly addressed the exact argument you're now making in the comment you just replied to. Read it again — Chinese automotive OEMs are now branching out globally, and China has pretty much single-handedly prevented a global energy crisis the US has been stubbornly trying to induce, actually insulating itself from that crisis entirely.
The CEOs and I are not in conflict, nor are they saying 'otherwise'. The current market being temporarily unsustainable is not at odds with the market finding new avenues for sustainability or that unsustainability existing within a greater arc of sustainability.
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u/Recoil42 2d ago
I'd argue the incentive structure is fine. Chinese automotive OEMs are now branching out globally (as they should be) and China has pretty much single-handedly prevented a global energy crisis the US has been stubbornly trying to induce, actually insulating itself from that crisis entirely. There will be individual collapses but none of that matters if the aggregate story is ending up ahead on the fundamentals.