China’s EV giant is reshaping the market fast...but the story isn’t just innovation… it’s strategy, subsidies, and some uncomfortable trade-offs for everyday buyers.
But private companies don't compete the way they did in the days of Henry Ford. They lobby for tariff barriers, for subsidies, for relaxed clean air standards. Schumpeter's creative destruction from competitive innovation fueling growth has turned into oligopoly. In some respects the Chinese are better capitalists than Americans, with all the warts that exist in their system..
Is this really new, or is it just a new country doing it? Perhaps it’s easier to see in the Chinese model, but vertical integration isn’t new. It’s not great for consumers but really how is this different from American or multinational companies that did this in other markets?
I don’t really get what you are trying to say here. Don’t get me wrong I am not saying nothing to worry or think about. Just that I don’t get your message or point you are trying to articulate.
The point I would make is that the "Big Three" US Automakers are no longer vertically integrated. They design and outsource. This can lead to repeat contracts with suppliers, but not guaranteed, so their supply chains are fragile. Big 3 also had/have subsidiaries in China but seemed not to have learned from their experience. GM in particular had leadership starting with the EV1. Canceled the programme, recalled and crushed the cars, even though lessee's wanted to buy the cars. Introduced the VOLT and BOLT. Owners of the BOLT were happy with the car. It met their use case. Canceled. Decided to bring the Bolt back as a bigger and more expensive car. I would not by a GM product because i have no belief they are serious about transitioning to EVs. Nothing worse for resale value than owning a model that has been dropped. Tesla vertically integrated and innovated to reduce costs.
I have an electric Volkswagen. As we have solar panels electric was the sensible way to go, and VW. Always produce reliable cars.
But private companies don't compete the way they did in the days of Henry Ford. They lobby for tariff barriers, for subsidies, for relaxed clean air standards. Schumpeter's creative destruction from competitive innovation fueling growth has turned into oligopoly. In some respects the Chinese are better capitalists than Americans, with all the warts that exist in their system..
Is this really new, or is it just a new country doing it? Perhaps it’s easier to see in the Chinese model, but vertical integration isn’t new. It’s not great for consumers but really how is this different from American or multinational companies that did this in other markets?
I don’t really get what you are trying to say here. Don’t get me wrong I am not saying nothing to worry or think about. Just that I don’t get your message or point you are trying to articulate.
The point I would make is that the "Big Three" US Automakers are no longer vertically integrated. They design and outsource. This can lead to repeat contracts with suppliers, but not guaranteed, so their supply chains are fragile. Big 3 also had/have subsidiaries in China but seemed not to have learned from their experience. GM in particular had leadership starting with the EV1. Canceled the programme, recalled and crushed the cars, even though lessee's wanted to buy the cars. Introduced the VOLT and BOLT. Owners of the BOLT were happy with the car. It met their use case. Canceled. Decided to bring the Bolt back as a bigger and more expensive car. I would not by a GM product because i have no belief they are serious about transitioning to EVs. Nothing worse for resale value than owning a model that has been dropped. Tesla vertically integrated and innovated to reduce costs.
Good column but not sure of your point