Chinese labors cost is far from cheap these days. If they want cheaper labor they’d be building cars in Mexico, which has lower labor cost.
The reason they are building these cars in China is because:
China is the largest auto market in the world by a mile.
China is the largest EV market in the world by a mile.
China’s early investment in EV tech and supply chain led to much easier to scale EV production there, when everything from highly trained EV production engineers to battery packs are abundant locally.
Actually, Chinese manufacturing labor wages are still incredibly low compared to Western automakers, and there are weaker rules regarding working hours, overtime, and vacation time. Their pay packages can be as low as 1/6th to 1/3rd of Western workers.
Then of course there's the IP concerns, which up until Tesla, OEMs were required to form partnerships with Chinese companies to produce cars in China. Those cars were of course meant for the Chinese market, not for mass export to wealthier Western nations. Which is fine, they are after all the largest automotive market in the world, on account of their massive population. Cars being produced for the nation are produced in the nation, which is a good thing. I have no problem with companies building cars in low wage nations, so long as those cars are going to nations with a similar cost of living.
And FYI, if a car is made in a foreign nation and imported that was previously build in the West for the Western population, then that will result in loss of jobs, a higher trade deficit, and more money circulating out of the lower/middle classes of the consumer nation and mostly up to the corporate execs and shareholders. Also known as a transfer of wealth and income from the many to the few on top.
No wonder execs salary has soared so precipitously versus their average worker since we started this trend towards globalization! Cheap labor means more profits. More profits means more transfer of wealth and income inequality. You support that?
No OEM has built cars in China and mass exported them to the West until Tesla. The US cracked down on it, but Europe certainly hasn't. Frankly, the West isn't so desperate for manufacturing workers as to justify this move. It's a greedy move, meant to pump corporate margins. That's it. You didn't even bother to consider the lackluster Chinese environmental regulations and enforcement in your response. The US largely reduced their use of coal over the last couple of decades... guess who didn't?
With regards to Mexico, strangely enough I never defended using low wage Mexican labor to export cars to wealthier nations, including the US, in lieu of using Western labor. The same dynamic of causing a wealth transfer upwards from customer to corporation with limited means of pushing that revenue back down into the general economy through a well paid manufacturing labor force still applies.
I will say this for Mexico over China though... the revised NAFTA agreement requires Mexican workers make a much higher minimum wage when working on cars being exported to the US. Which is in addition to the fact that they're our direct neighbor, and boosting their economy helps the US as well. Many of the vehicles currently being produced in Mexico are low price and margin vehicles, which has largely been accepted given that the US allowed lower wage nations (at the time at least) like Japan and Korea to start mass exporting cars to the US. That lead to a massive loss in market share for the big 3, which was likely a big reason for their bankruptcies / near bankruptcies in 2009.
Tell me... how did that turn out for the US economy, eh? And you still want to defend mass imports from China? The irony is that since the early 2000s, Japanese and Korean companies have at least built up their manufacturing capacity in the US, likely due to the chicken tax and the trend by consumers towards larger SUVs.
I think they've hit the jackpot with pricing of this model, so it makes sense to bring production to Europe. RWD version is even cheaper than electric Corsa, which is smaller and has about half the power of Volvo. AWD version is the cheapest new car that will do sub-4s to 100km/h.
Volvo seemed to be way ahead of the curve with their plug-in hybrid SUVs, and those XC90s are everywhere in suburbia. Wonder if they'll be able to capitalize on the EV transition. I haven't seen too many of the XC40s or C40s around yet.
Yet somehow Volvo is BEHIND the curve on EVs to their own sister brands. It was a big deal when Geely acquired Volvo and it's well known brand nearly 15 years ago, and have put a lot of money into it, but somehow all the best EVs Geely have put out first were given to Polestar, Zeekr, Smart, and even Lotus got their EV out before Volvo.
But the EX90 and EX30 are solid offerings, even if the EX30 is not as exciting as its sister car Zeekr X, and will put Volvo on a good EV footing moving forward.
I think a lot of this has to do with their Chinese counterparts. They were able to pull a lot of tech or at least learnings from Geely.
I mean look at Lotus who is now pumping out EV SUVs with no prior platform history. These brands get to keep all the reputation and very little of the Chinesium stigma
Depends on where you live I think, I see electric XC40’s all the time. But I live in Belgium, where the company car is king. And boy is the XC40 a popular choice
It is perfect for the job: it sits right in the middle of the company car price bracket and is one of those SUVs whose primary purpose is "road presence", which appeals to the average finance/IT bro.
It didn't have much competition for a long time, other than the ID3 and ID4 which are depressing shitboxes, and manages to be more practical than the next higher tier of cars like the Model 3 and Polestar 2 (there's this price range in company cars where you are just expected to get a sedan).
It is also available with a gasoline drivetrain that qualifies for tax evasion (PHEV) and Volvo actually manages to deliver them in the agreed upon timeframe unlike VW (my Cupra is finally being delivered in month 10 of the 5 month delivery period after innumerable phone calls and threats).
This is great news for them as it means they can do SEA platform car construction outside China. Hopefully they can tool their US plant for SEA cars as well and then save a lot on tariffs.
> In a response to strong customer demand for the new fully electric EX30 SUV, Volvo Cars has decided that it will start building the new small SUV in its Ghent plant in Belgium from 2025, expanding production capacity.
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