In the UK, EVs are cheaper than petrol cars, thanks to Chinese competition
103 points
2 days ago
| 12 comments
| electrek.co
| HN
martinald
2 hours ago
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Not quite. The UK govt has a rolling target of how many EVs are sold as a proportion of all vehicles. The manufacturers get "fined" £15k per ICE car sold over the target. The targets are ramping up rapidly - 22% in 2024, 28% in 2025, 33% in 2026, etc, reaching 80% (AFIAK, keeps changing) in 2030. There's various trading mechanisms in place and what not so it's a bit more complicated than this.

So it's far better to sell EV below cost (Chinese or not) to get more sold than have to a pay £15k for an ICE car.

The Chinese manufacturers are arguably at double advantage here as they have more BEV to sell so it's far easier for them meet the targets, and they can 'sell' the excess to the Western manufacturers (and further subsidise their EVs!).

I'm not personally against it, I got a brand new EV on a lease recently for close to free after all the tax advantages, and it's not like the Western manufacturers didn't have time to prepare...?

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eterm
2 hours ago
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The goal is to migrate everyone to EVs, and it sounds like the government incentive mechanism is working, albeit in a roundabout way.
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sega_sai
2 hours ago
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The problem is that there is not enough infrastructure for EVs. If you can't charge at home (e.g. you live in a flat), it is hard to live with an EV and it's much more expensive than the ICE.
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teamonkey
1 hour ago
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boznz
1 hour ago
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I had a rental EV while I was there for 6 weeks last summer, it was a pretty low spec jeep model and I stayed at mates places all over England none of which had parking or charging, to tell the truth charging was a bit spotty in town, but if I was just going around the local area the battery was good for a week or more. My take away was I would definitely rent an EV again, but a lot of the older charging infrastructure still sucks, under-provisioned at peak times, and cost 2-3 times what a similar charge would cost here in NZ. I ended up doing most of my charging at the Tesla superchargers on the motorways and at supermarkets in town. I did 2900 miles total and it was about the same cost as petrol in the end, but worth it as the EV was cheaper to rent and was automatic (which renters charge a premium in UK)

Not sure fast charging all the time is good for battery life though. 99% of my driving in NZ is on a normal 10A overnight charge

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sigio
2 hours ago
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Local government can quickly change that, if they get their act together. Here in the Hague, there's literally thousands of public chargers available on the city's residential streets. Coupled with the fact that the charging-price is city-mandated at a fixed rate (currently around 35ct/kwh), this gives a perfectly fine solution for most people. (I can charge at home, for 20ct/kwh currently, so that's even nicer)
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hunterpayne
46 minutes ago
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The problem isn't infrastructure. Its the amount of Li in reserve.
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tshaddox
1 hour ago
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You can't fill up your gas tank at home or at work, which is presumably where a significant portion of EV drivers charge their cars.
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znkynz
37 minutes ago
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There are many, many homes in the UK with no garaging, where cars are parked in non-reserved spaces on the street overnight.
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cogman10
1 hour ago
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In the UK? Nah.

Electricity is expensive in the UK (~25p/kWh) But not gas car expensive. It is £1.57/L (£5.94/gallon).

The EV infrastructure is also pretty dang far along, especially compared to the US. Remember that everything in the UK is a lot smaller and closer together than it is in the US. Further, the UK has a functional train system for long distance travel. You can go from the top of Dunnet Head to Lizard Point in a 15 hour drive.

People downvoting me, Look up chargers in plugshare to see just how many there are in the UK, it's a lot. And also correct my math if it's wrong. An 80kWh car costs £20 to fill up. A 55L car, which has about the same range, costs £85 to fill up.

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teamonkey
1 hour ago
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Also if you are able to charge at home you can subscribe to a smart tariff that gives you electricity for 4p/kWh overnight. That’s £3.20 to fill an 80kWh battery that on a modern car will take you up to 320 miles.
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pstuart
31 minutes ago
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Another problem is that fuel taxes are a reasonably equitable means of paying for the roads, and EVs don't have that -- the closest would be vehicle miles * weight or some such.
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dalyons
2 hours ago
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And that will never change?
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diath
2 hours ago
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> The goal is to migrate everyone to EVs

This won't happen unless they outright ban non-EV vehicles which is unlikely considering how many people are still using old cars and cannot afford new cars, how many car enthusiasts are there, and not to mention potential lobbying from big oil.

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dalyons
2 hours ago
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So 20 years from now, all the old gas regular people cars have aged out. You’re left with what, 1 or 2% of enthusiasts cars? Seems like success to me, and fairly inevitable
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Jblx2
2 hours ago
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There will undoubtedly be a death spiral of sorts when it comes to gas stations, refineries, etc. where they become fewer and farther between as less people buy fuel. And that makes it more expensive and inconvenient, so more people buy EVs, which in turn...
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rebolek
1 hour ago
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Death spiral to gas stations? why? EV cars need to charge somewhere (and on long trip it can’t be at home) and people need to take a break and grab a coffee sometime too. They will change, sure, but certainly not die. Refineries will be fewer but we do need another products from them also.
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Jblx2
43 seconds ago
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I'm using the definitions:

- Gas Station = retail outlet that sells and dispenses gasoline and other petroleum-based fuel products

- Charging station = place to charge your EV

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barbazoo
1 hour ago
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Chargers can be anywhere. They are at grocery stores, parking lots, restaurants, I can see the need for a dedicated re fuel station to disappear when charging is ubiquitous.
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cogman10
58 minutes ago
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Presumably a lot of people will charge at home which significantly cuts down the number of stations needed or the traffic to those stations.

For example, I have 2 gas stations within a mile of my home. They stay pretty busy because people around me constantly need to fill up. I, on the other hand, basically never visit either of those stations since I switched to an EV. I charge at home.

If everyone around me switched to EVs, those stations could not stay in business. There's a grocery store in the same area which makes anything those stations offer obsolete.

Those are the majority of gas stations that die with a mass switch over to EVs. There's a gas station for my hometown without an attached convenience store with 300 people there. There's no way that station stays in service if a significant portion of the community switches to EVs. It already struggles to be profitable as is (I know the owner).

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idontwantthis
1 hour ago
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Charging stations will only need to be on highways if cities are sensible and build slow charging infrastructure (aka normal wall sockets) in parking spaces. Urban gas stations will be a thing of the past.
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gerdesj
52 minutes ago
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"Gas" prices are hiking up here - its about £1.90 per litre of diesel at the moment and petrol isn't much less.

In contrast, my cheaper 'leccy rate is now about 25% less at 5.2p per kWh than it was. Electricity is weird in the UK - its pinned to the price of gas and is currently (lol) rather expensive "on peak" at 27.87p per kWh and there is a day standing charge of 47.71p. That's from Octopus.

We also have a petrol car - an elderly Renault Clio. It does just run and run and is pretty economic for a pretty shagged out ICE.

My EV is cheaper to run, by far. However, its unlikely the battery will last 20 odd years. I haven't yet sat down and done some whole life costs for ICE vs EV yet.

My Saic MG4 can do 300+ miles on a 100% charge of its 78kWh battery. After two years, it still manages to exceed its WLTP (with care, when required) and I quite like the ridiculous 0-30 acceleration etc.

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medler
2 hours ago
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This has already happened in Norway, where 96% of new cars sold are EVs. They didn’t ban combustion but they did support adoption with subsidies and other incentives
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triceratops
2 hours ago
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New EVs become used EVs that poorer people can afford.

Poor people don't buy new cars. New EVs being expensive is not a poor person problem.

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hdgvhicv
1 hour ago
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The problem is a 50kWh battery in a car is worth more as a battery than a typical £1500 car.

The lowest end of the market won’t have electric cars unless the batteries are shagged (early Leafs)

And given how insanely cheap petrol is (15p a mile, so £450 for a low mileage runaround) the savings even if electric was free and they weren’t introducing a 3p/mile charge isn’t there.

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cogman10
49 minutes ago
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A £1500 car is £1500 because it's expected you'll need to replace the engine or transmission pretty soon. That can be up to a £4000 job (£2500 on the low end).

And, as it turns out, a brand new 50kWh battery costs around £4000 to manufacture. Used will be cheaper.

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quibono
23 minutes ago
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With most modern ICE cars everything but the transmission and the engine will fail before those two go out. Also: I don't think that's the usual case. Plenty of sub 2k cars that will happily keep driving for years (I've had 3 such cars). ~700 mark is where you start seeing 300k mile "finish-them-off"-type cars.
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XorNot
43 minutes ago
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Battery prices are still falling though, it's just demand is enormous. But I works fully expect China to start having "compatible replacement packs" being built once the volume is there to support it.

A logical future market is battery-refurbished EVs, just a question of where the crossover point is.

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polyphemus_rm
2 hours ago
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That's interesting!

Do happen to have a link for how the "brand new EV on a lease recently for close to free after all the tax advantages" works in the UK?

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martinald
1 hour ago
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As sibling comment posted, if you run a company you can write off the cost of the lease against corporation tax (25% tax saving), VAT (a further 10% saving if you have personal use, otherwise the full 20% if it's purely business), and you don't have to pay income tax on the money (albeit with a small benefit in kind payment).

If you're in the higher tax brackets this means a £200/month lease (say) ends up more like £90/month.

And because of the "new" £3kish subsidy the govt put in, the car finance companies seem to basically apply that as a big discount to the lease value (or it seems that way?). So you could get a brand new ~£30k EV with no upfront payment and a 2-3 year term for <£100/month including maintenance. Mine even came with a free car charger install at home.

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gnfargbl
2 hours ago
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This only works for business leases. The employee sacrifices part of their salary in return for being provided a lease car, and both the employee and employer save tax on that money (up to 45% employee, ~15% employer).

For an ICE car the government claws this money back through hefty "Benefit In Kind" taxes placed on employer-provided vehicles, but as an incentive to drive adoption the rates on EVs are only 3% of the car's nominal purchase price (and you only actually pay up to 45% of that 3%).

It doesn't work out "free," but it's typically as cheap to lease a new EV through this scheme as it is to pay the depreciation on a used ICE.

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pkaodev
1 hour ago
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Not sure what schemes are that good (would be interested to see). My company has one, but I ended up buying a used ICE because it worked out to cost about the same as leasing the equivalent EV model of that car. But that might have been the case for the specific car I was looking at (small Volvo SUV).
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martinald
1 hour ago
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check out https://www.leaseloco.com/ (there's other sites - I am assuming you are in the UK), they have a lot of deals on. If you want a really good deal then I don't think you want to look for a specific car, you want instead to see what deals are going on and choose between them. It _seems_ that from time to time the manufacturers do a bit of a firesale via leases.
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cjs_ac
2 hours ago
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> And the presence of lower-cost alternatives can force non-Chinese brands to have to compete, rather than sitting on their laurels and gathering profits from expensive land yachts as the competition’s prices are inflated by tariffs. This is why the UK is getting Honda’s super cool Super-N, and the US isn’t.

The Honda Super-N EV will also be released in Australia, New Zealand, and other countries in Southeast Asia that were also British colonies: this decision has nothing to do with tariffs and everything to do with left-hand-drive vs. right-hand-drive.

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lmm
1 hour ago
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Is it really that hard to produce an opposite-handed version? That sounds more like a convenient excuse.
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the_sleaze_
2 hours ago
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No no, that's obviously wrong. It's because the sun rises in the East much earlier than the west, it only seems like like they're getting it earlier but it's only because of the way the planet works. And the sun never sets on the British empire is why they'll be getting it.
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muyuu
1 hour ago
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The treatment of our betters regarding "nudged" electrification is borderline misanthropic.

For people with a garage or a driveway who can charge at home, EVs are overwhelmingly a better option. The problem is that large swathes of the population are outside of that and you're making their lives miserable by punishing ICE car ownership.

Meanwhile, adoption numbers are thrown about ignoring that for those in optimal conditions, adoption is already very high and cannot grow much more. While for those particularly misaligned with the strengths of EVs, it will often be so painful to own one they will resist with everything they have, and in many cases they will have to admit defeat and stop driving altogether. Which I guess the government will also be content with. But it will take some time.

*typo

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tshaddox
1 hour ago
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> The problem is that large swathes of the population are outside of that and you're making their lives miserable by punishing ICE cars ownership.

It's obviously not ideal to have an EV if you can't regularly charge at home or at work, but "making their lives miserable" seems like a bit of a stretch. Instead of spending 5 minutes a week filling up at the gas station, you'll spent 30 minutes a week at an EV charging station.

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muyuu
53 minutes ago
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In my area, charging prices have been in the £0.70-£0.90 /KWh for a while. That makes ownership VERY expensive, especially for road trips. On top of that privilege, you have exorbitant insurance costs and terrible devaluation.

I rent EVs every couple of years, last time it was recently, just to see how things are evolving. Since anyway it's clear where policy is going. Whatever you think about said policy. Right now, they're lovely commute machines if you can charge at home.

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Thlom
1 hour ago
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Eh. A new EV can drive 400-700km on one charge. It takes 20-60 minutes to charge on public chargers depending on the charger. Except that charging on public charges is more expensive than charging at home I don't really see the practical issue. I know many people without charging options at home that will never go back to ICE.
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muyuu
1 hour ago
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Except availability of chargers is spotty in most of the country, and charging prices so high that the running expenses are considerably higher. Not even considering insurance, which is also a killer. Been there.

Second hand EVs devaluation is not a product of anecdote. It reflects the current state of the market.

They are a different product and they're great at what they do. In fact, for those in the market for them, "nudging" (state coercion) is not necessary at all.

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Barrin92
52 minutes ago
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>Except availability of chargers is spotty in most of the country,

the UK is a small country. The average British driver drives 20-30km per day. One full EV charge almost gets you through England South to North. If you're putting a bunch of charging stations next to workplaces for people to charge once or twice per week that's going to cover most drivers.

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muyuu
42 minutes ago
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What do you suggest? That people spend most of their time on the road going to and from (very expensive) chargers across the country? That is such a prospect it makes our decrepit railways look good.
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dzonga
39 minutes ago
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> Consumers accept that they can pay more for a better product, so when you compare a Model 3 to an ICE BMW 3 series, and they’re similar in price, but the Model 3 offers better technology and drive characteristics, then on balance you’re getting a better deal with the Model 3.

statements like these are what turn some people away. cz they're not sincere.

you can easily compare the costs between models within a manufacturer - BMW ICE version vs Electric version

& on a head to head basis the old guard of auto makers e.g BMW, Mercedes make better vehicles than Tesla.

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nickserv
2 hours ago
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Unlike the EU and the US, the UK doesn't have any major car companies anymore, so there's less of an incentive for them to apply tariffs on Chinese imports.
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dalyons
2 hours ago
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Same as Australia! The rate of proliferation of Chinese EVs (and gas) there is crazy to see. Free market baby!

(And before the inevitable “but Chinese subsidies” comment - update your talking points, subsidies no longer happens to any meaningful degree)

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dzhiurgis
1 hour ago
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Same in NZ. Most popular car is Tesla + 15 different Chinese brands: https://evdb.nz/sales

Actually somewhat surprised we still even have legacy auto in top 10.

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mig39
2 hours ago
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Coming to Canada soon, though in a limited way:

https://nationalpost.com/news/massive-risk-chinese-evs-are-t...

Hopefully this means competition with the other EV manufacturers in Canada too.

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jml7c5
1 hour ago
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Unfortunately, because the number of imports is restricted the cars will likely be about as expensive as the competition. Chinese car companies have no strong incentive to undercut the market when they can take a fat margin and still sell out anyway.
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testing22321
1 hour ago
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Fantastic. More competition and choice is always, always better for the consumer.
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amelius
1 hour ago
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Did anyone think of the national security implications?
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cpursley
33 minutes ago
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Certainly typed out on a Chinese made phone...
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rationalist
27 minutes ago
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Whataboutism is not helpful.
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cpursley
24 minutes ago
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There's nothing lazier than a whataboutism claim. If we're okay with Chinese made phones and other electronics, then let's give their cheap EVs a chance instead of worrying about a plethora of other hallucinated *isms. Anyways, if the Chinese want to hurt "US" they have plenty of other ways to go about it.
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rationalist
21 minutes ago
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> There's nothing lazier than a whataboutism claim.

You're right, I guess it is only just slightly more lazy than writing the whataboutism.

> if the Chinese want to hurt "US" they have plenty of other ways to go about it.

Another what aboutism...

Why should those other national governments move away from Microsoft, the U.S. has other ways to hurt those countries.

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cpursley
19 minutes ago
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Then drive some Schitty Chevy, what do I care. The rest of us need reliable affordable transportation that won't boil the oceans over. The Chinese are willing to make it, that is a good thing (+ they haven't bombed anyone for quite some time to boot).
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storus
2 hours ago
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Soon UK will start taxing EVs by distance driven which might offset many EV advantages and make their disadvantages more pronounced.
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ilamont
1 hour ago
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How does the service and support part of this work in countries that have opened the door to Chinese EVs?

Do they operate like Tesla, or can indie garages handle repairs? How long are warranties?

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JPKab
2 hours ago
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It's a shame that the UK isn't making their own EVs. It's a nation with a long tradition of manufacturing and a working class hungry for opportunities.

Both Labour and the Conservative parties seem to have resigned the nation to only being a financial hub.

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tremarley
2 hours ago
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The UK are making an incredible amount in tariffs though
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nickserv
2 hours ago
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Yeah they sold off pretty much their entire motor industry to the Germans (Mini, Bentley, ..), Chinese (Lotus) and Indians (Jaguar, Land Rover).

Typical case of short sighted capitalism.

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Devasta
2 hours ago
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I don't know, Stephen King couldn't write anything that matches the horror that was the management of UK car companies in the second half of the 20th century. British Leyland was a disaster from start to finish.
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hermitcrab
50 minutes ago
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British cars in the 70s and 80s were shockingly bad. The Austin Metro and Allegro spring to mind.
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cpursley
31 minutes ago
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What's funny is the new owners of MG make a pretty nice car (reliable and good looking): https://www.mgcyberster.co.uk
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testing22321
2 hours ago
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Meanwhile Ford’s CEO said that if Chinese EVs are allowed into USA it will destroy the US automakers.

He is not even hiding the fact US automakers make a more expensive inferior product, but that US consumers should not be allowed have the superior one.

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Ifkaluva
1 hour ago
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Well, the UK no longer has a domestic auto industry
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hunterpayne
43 minutes ago
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No, its because the Chinese subsidize the costs of those cars. Say I live in a country that will pay me $50k to build a car. It costs me say, $55K to build the car which I now sell for $60K. How you do you, in a country that pays you nothing to build cars, compete? This is an extreme example but its what is happening here (just will different and smaller numbers).
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barbazoo
1 hour ago
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Or at least to have the inferior product at a lower price.
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tshaddox
1 hour ago
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From what I've seen, I have no reason to expect that a cheap new Chinese EV sold in the U.S. would be meaningfully lower quality than a cheap new American car.
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cpursley
29 minutes ago
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The big 3 absolutely have an inferior product. Just rode in a new gas Cherry Tiggo, I'd compare it to a Hyundai in terms of value/features, but even a bit better. No American car in that class comes even close. And I rode in one 10 years ago (Tiggo), they have come a very very long way.
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drstewart
1 hour ago
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Meanwhile China does hide the fact that they block superior competition of various foreign services via the Great Firewall
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CMay
1 hour ago
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"thanks to Chinese competition". More like anti-competitive practices. They can force down Chinese wages to keep labor costs down. They can require companies involved in component technologies to share their IP in order to do business in China, then replicate it and subsidize the hell out of it to push them not just out of China, but out of business globally. Then subsidize the whole final vertically integrated manufacturing of the end product so it's all cheaper and harder to compete with.

Not very free market. It's basically military and intelligence budget combined. If you can hurt auto manufacturing, you further consolidate manufacturing inside China. Then if you can get people to pay for you to spy on them through their own cars, that's well spent intelligence budget. If you reduce the portion of global manufacturing outside of China, you reduce the amount of manufacturing that can quickly pivot to wartime production like we saw during World War 2.

I'm glad that we still have sane enough people in the US that we ban these obvious and transparently bad things. It wasn't that hard to see free trade died.

Hopefully people don't still think that China's green energy initiatives are about the climate. Whatever you think about those initiatives, don't let that blind you to the legitimate questions around China's motivations.

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