Ford’s Terrible China Competition
Ford has begun to realize that Chinese EVs could badly damage its US business, and it does not have a solution. The average price of an EV sold in the US is $55,000. The Chinese sell many below $25,000 and some at half of that. The only difference between high-quality EVs and success in the US is federal government tariffs. While these are a solid wall, no one can forecast how long they will stay in place.
Chinese car companies are often helped by government financing. If they are attractive enough, that will not matter to the US consumer. That consumer is worried about battery charging times and the number of charging stations. However, a significant barrier to broader EV sales is price. At $25,000, Chinese EVs are priced below the average price of a gas-powered car in the US, which is about $45,000.
Unusually, a government decision has blocked a huge industry that would benefit consumers from doing business in the US.
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