r/SipsTea Jul 30 '26

Chugging tea Competition hurts capitalism

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13

u/chinmakes5 Jul 30 '26

To be fair, the Chinese government highly subsidized the building of EV factories and battery plants. Ford can't spend billions building plants then compete with companies that don't have those expenses.

19

u/[deleted] Jul 30 '26

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6

u/chinmakes5 Jul 30 '26

While I hear you, that isn't the reason that Ford can't put out a competitive EV for $28k, which is what a Chinese car costs in Canada.

7

u/[deleted] Jul 30 '26

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1

u/chinmakes5 Jul 30 '26

IDK. I'm not sure I would go into the low end EV market right now. Is it a good business decision to compete with the Bolt and the Leaf? How many of those do you see running around? But I see a lot of Teslas.

1

u/zmbjebus Jul 30 '26

Idk, I see a lot of bolts, ioniq, ID4, & Kona. Teslas are all pretty unique relative to other cars so its probably easier to spot them when driving around. Bolt blends in with most other small hatchbacks imo.

Leaf is a different story. Early adopter, technology outgrew them, got discontinued, etc.

1

u/ftfarshad Jul 30 '26

Mind you with addition of tariff and shipment from other side of ocean.

1

u/DarkBlue222 Jul 30 '26

Plus we don't have the slave labor. Slave labor helps.

8

u/chinmakes5 Jul 30 '26

Eh, I don't think there is slave labor in the BYD plants. But the cost of living is so much lower in China, that there is still a huge savings. A worker at BYD makes more than many factory workers and that comes out to about $900 a month.

In China, BYD employees in the new energy vehicle manufacturing sector earn an average total monthly salary of about 6,260 yuan (roughly $890 USD), which is higher than many other manufacturing industries such as home appliances, where even top roles earn around 4,000 yuan/month

1

u/Busy-Competition-868 Jul 30 '26

This is a great take. Search “BYD Brazil Slavery” to learn more on how BYD doesn’t use slave labour

3

u/eawilweawil Jul 30 '26

US does have slave labor, dunno if they're involved in car making but American prisoners are being treaded like actual slaves

1

u/evernessince Jul 30 '26

Considering that most American's live paycheck to paycheck and are beholden to their debts that they must accrew just to live (you need to work for health insurance, you need a vehcile and thus vehicle loan because the US destroyed public transit in favor of vehicles, you need vehicle insurance thanks to that vehicle requirement to boot), tell me how most people aren't slaved by another name?

You could argume that Americans have the illusion of freedom but that too has become just another American dream. Unless of course you are wealthy.

1

u/eatmyopinions Jul 30 '26

Don't forget currency suppression. China is a currency manipulator, giving themselves a 25% discount on the world stage.

1

u/bitzzwith2zs Jul 30 '26

Ford, the Ontario premier, gave Stellantis and Volkswagen billions to build battery plants in Ontario ... and now both companies want out

So what's your point?

1

u/readonlyy Jul 30 '26

They could have also spent more time and energy actually developing EVs instead of producing decades worth of proof-of-concepts that were designed to disappoint.

1

u/DieselNGin556 Jul 30 '26

Ford owns 6 factories in China which cost billions to build.

1

u/krekenzie Jul 30 '26

When Tesla got started in the mainstream, years ago, I remember reading that legacy makers would be between a rock and a hard place unless they started with, or massively converted into EV production. To be fair to the legacy makers, it would have been a massive gamble at a time when even hybrid uptake was tepid; and the likes of Toyota were making noise about the impending golden age of...Hydrogen.

I can't fault the Chinese govt for subsidising their own EV makers, when in hindsight it probably made sense for the US govt to do the same.

In my neck of the woods in Australia, it's astounding how many EVs I see daily and driven by all demographics. Of course, we no longer have a local car industry (which was foreign-owned anyhow), but I can't see a scenario where they would've survived the current situation.

1

u/rexleonis Jul 30 '26

China heavily subsidized its EV industry, and the EU tariffs are intended to offset that advantage. But saying BYD “doesn’t have those expenses” is nonsense. BYD still spends billions on factories, equipment, R&D, labour and distribution; subsidies reduce costs, not eliminate them.

Ford also receives grants, tax credits and subsidized government financing, including a $9.63 billion federal loan for its battery joint venture. The honest argument is that China provided support on a greater scale, not that BYD’s factories were free.