BYD profit in EU is 10x higher than in China and even with new 30% tariffs, still makes 5,000 USD per vehicle, report says
BYD profit in EU is 10x higher than in China and even with new 30% tariffs, still makes 5,000 USD per vehicle, report says
cross-posted from: https://lemmy.ml/post/16821518
This sounds like a model we should be emulating and adopting, but instead we are fighting to keep our existing model, that is less efficient and less effective at making affordable EVe available to the public, all because the Chinese model doesn't align with our ideology. I say, fuck ideology. We should do what works, even if it doesn't necessarily pass some ideological purity test.
Vertical integration has the potential to be more optimized for manufacturing, but you run into a few issues:
Most of those reasons come down to the fact that it stifles competition. Look at what happened with movie companies owning the distribution and playback and how it’s happening again with Streaming services.
Look at what's happening in Canada to a much more necessary service. Our grocery chains are heavily vertically integrated, and they gouge us all to hell.
Loblaws owns everything in the supply chain from production to logistics and then some. Not only are they hugely integrated through the food supply chain, but they are also able to leverage their assets to provide financial services, have bought out one of our biggest pharmacy chains, and are currently trying to expand out into the telecommunications business.
What happens when one company owns everything? Well, they get to do whatever they want, basically. When anybody comes around to regulate or otherwise try to reign in the bullshit, they're simply told to fuck off, because they have nowhere else to turn.
Vertical integration sounds great from a business perspective, but it is truly awful for the consumer long-term.
I'm sure a more vertically integrated supply chain comes with its own problems. I don't think there's a perfect solution. Even if the current US model better promotes competition, that doesn't seem to be making EVs more affordable.
So we essentially can't be more efficient cause greed.
Yay.
What if it is Tesla/Elon running the whole vertical?
I don't think Elon would be very good at managing a vertically integrated, domestic supply chain. I definitely think someone better qualified for the task should do it.
Yeah but then you can't charge every step of the way, bypassing years of american 'innovation'.
End of the day america is riddled full of inefficiencies in the form of the 0.1%, but they really don't seem keen on giving anything up