The item should be "good cars". We in Europe sell the Ferrari's, Bugatti's and Lamborghini's. We are in a different level of customer base. Trump has a Ferrari, a Mercedes and 2 Rolls Royce's. Musk has 8 European cars. You're also about to deport cheap labor. Good luck that.
@@blueoval250 It's difficult to tell, because of Poe's Law, if this parody. Fuel injection is amazing. VVTi is amazing. Evap, doesn't hurt a car, but it's decent for getting rid of vapors. The rest of the stuff, I don't care about.
@ of course it’s not parody. Ferrari engines are amazing. They aren’t cheap. A vent is wonderful for getting rid of vapors. You don’t need solenoid valves, canisters, sensors etc
let's just take claim from the beginning of the video: "basic automobile is 50 000 OR MORE". now google this "cheapest honda in usa". it's 17k fit and 21k $ civic. what the hell is crooked nbc talking about? edit: that's price in uk pounds, and fit probably doesn't sell in usa. in usa civic starts at about 25k $. still, that half the 50000 for "basic" car. that average car price is pumped by americans loving suvs and trucks. and that's nonsense.
I work with guys that buy 100k trucks just to drive back and forth to work. Then they put 12k worth of wheels and tires on them and complain about the gas prices
Bro, that was like the late 90’s/early 2000’s! That’s no coming back 25 plus years later. Instead, you will be lucky to ever a basic new car at that price! Most people shopping in that bracket now are looking for used cars!
@@Aggie4life77 Nah I leased a 2013 Acura ILX that stickered for $29k then I leased a base 2015 Cadillac ATS that stickered for $34k after that so it's been way less than 20 years since you could get a premium brand car for around $30k.
@@Erik_The_Viking so let me get this right with regards to US brands: They make cheap junk cars, but they don’t wanna sell them cheap for what they’re truly worth.
Nope. Americans will no longer buy 'cheap' cars. By 'cheap' I mean smaller cars with few options. Americans want ALL the options...powerful engines, all wheel drive and ALL the luxury options but they want to pay economy cars prices. Americans have become childish and greedy.
Illegal in some states, including Texas which is ironically the North American headquarters for Toyota and is also home to Toyota’s largest American factory.
I bought a used Toyota Avalon from off a lot a few months ago. After 6 hours of back and forth, we drove the car home. By the time we got home, we didn't rely care that we had bought a fancy newish car. We were happy it was over. They had sucked all the fun out of it.
I'm convinced the automakers compel their stylists and engineers to deliberately design vehicles that are almost impossible for shade tree wrenchers to work on.
I own a 17-year-old Japanese car, and I'm spending $2,400 to fix everything wrong with it. It's in the shop right now and will be pretty much "brand new" when it's done. The odometer reads 250,000 miles, yet even in -40°F weather, it has never stalled on me. The heat works perfectly. So why would I buy a new car? The money I saved went into a high-end gaming rig. Buying a new car is an emotional purchase, not a rational one. Some might argue it's for the manufacturer's warranty, but you can purchase warranties for used cars too, or you can just put money aside every month to account for possible repairs instead of paying interest. Do the math and ignore the rest.
My car has 203K on the odometer and has never let me down either. The maintenance has been non existent (knock on wood) outside of routine services like oil changes, brake pads, etc. The only complain I have about my car is there’s no backup camera, although I know can install one. Other than there’s Bluetooth, AC, and I average 31 MPG. Works for me.
When my 20 year old Japanese car craps out, I'm going to replace it with another used one. Bought it for $3200 4 years ago and it hasn't had many issues
Protest with your wallet. Stop buying these cars! It's that simple. We as tax payers bailed these aswholes out back in 08 and now they squeezing us? Just stop
Funny that they didn't mention that American automotive CEOs make TEN times more than European or Asian ones. When an executive makes 700 times more than the average worker, they might be the problem.
@@domjohnson2579 The factory workers for Mazda, Honda, Toyota, VW, Volvo, Subaru, Audi, are paid just as much as Ford, GM and Chrysler, but their CEO's make less and many of them outperform the American companies. It's not the workers' fault.
@@domjohnson2579 So, I looked it up... average salary for a car factory worker in Japan is $39K a year. Average for the UK is $41K, and in the US it is $34K. Clearly salaries are not the main problem. It's important to consider that many foreign brands have factories in the US that actually pay better wages.
You can't just look at the salary. US workers also get end of the year bonuses (profit sharing) and insane health plans... that's why they call them Cadillac health plans. Add on top of that the pensions until death. When you factor in those extras the actual costs per employee hour of labor goes up about 70%. To be fair, EU and Japan subsidize some of those costs by providing national health care but that's hard to calculate because it ends up working like a flat tax. When you compare the median worker pay to the median vehicle price you see the US worker is making somewhere between 60 to 100% more than their foreign counterpart - at least by purchasing power of being able to buy the very car they make. Maybe not housing, but that's another issue.
Small cars aren’t suitable to everyone’s work and personal lifestyle. I stopped buying small cars because I couldn’t easily fit my equipment in it and it wasn’t comfortable on long road trips which I frequently make. I got a hitch put on my crossover SUV because I need to move furniture out of a storage out of state. The alternative would be to have to fly down and drive a Uhaul back or hire a moving company. Much cheaper this way.
"People want all the bells and whistles" I find that hard to believe, are there really a lot of people asking for "parking assist?" If you can't parallel park you shouldn't have got a license
Yup. And the GOVERNMENT is making it STANDARD equiptment. Its the GOVERNMENT that's forcing this over complicated trash. Don't get us started on the emissions nonsense.
the outdated dealership model is also to blame. Dealerships saw the prices they were selling at during the pandemic and wanted to continue those high prices
Way too many bad dealerships out there making that case. If dealerships want to gouge customers non stop they should not be surprised when they get cut out of the picture.
Forty years ago the Big Three US automakers complained that the Japanese cars companies were playing unfair because the Japanese were making better, more reliable, more fuel efficient, and cheaper cars than the American brands.
Back then the profit margin on a Japanese car was lower than the US automakers were paying to the union pension per vehicle. And on top of that the Japanese cars were better and cheaper and more fuel efficient. It’s a miracle the US automakers survived as long as they did.
@@Thunderrolls87none of the Japanese plants in the US are union, foreign automakers deliberately build plants in areas that are extremely rural and in states that don’t like unions to get around expensive labor. Nissan started this trend when they build the Smyrna TN plant back in the early 80s and got huge tax breaks and because there is almost no competition in the labor market around that region they can get away with paying less. Unions absolutely have a big part on the cost of vehicles. I am pro union and have had plenty of family that worked for labor unions. Another misconception is all Japanese vehicles are better made and that just isn’t true. Toyota are the only ones who have a strict QC process with its part suppliers and line workers while companies like Nissan and Subaru have had tons of quality issues. The Japanese labor force is generally more disciplined and care about doing a good job more so than Americans but almost every Japanese vehicle you buy in the US is made in North America
We can complain about government subsidies in China all we want but remember we bailed out GM in 2008 and in the following years GM sales in China went up by 1 million per year. China did not complain about that.
@Jbghkkjkkyyf Toyota CEOs and other Japanese auto manufacturers have similar salaries. 😮💨 Stop making excuses for abusive wealth hoarding practices And before you say it, no, I'm not jealous.
@@billnye69 slow down. I’m not making excuses, OP specifically mentioned GM, Ford and Chrysler as if this is merely an American car company problem. You are thinking wayyyyy to deep into this my friend
GM sold 6M cars 2023 so "cost of the CEO" per car is around $4.50 per car. Note: It's more because salary is only part of the CEO's total compensation. The whole executive team compensation is likely around $100 per car.
I find it quite interesting to see one person with a $80,000 new shiny pickup truck driving to their local Dollar General store and hauling a bag of groceries to their old trailer home.
The human need to project status can't be underestimated. It seems like people are desperate to attain their desired identity at almost any cost. There's a reason why Bernard Arnault, owner of LVMH is in contention for wealthiest person in the world.
Just bring back a basic car or truck, that has zero tech, roll up windows, just an ac and a heater and a radio, and sell that. Not every one wants an iMac on wheels..
@ because in America at least. It seems like most people want a very tech loaded car, that is also very expensive, and very big. Plus if we keep buying this cars what incentive do big corporations have to drop prices. Hell if people are buying my cars for 80k I’m not dropping prices either.
The older you get the wiser you get. I don't need fancy and the greatest. Just basic transportation for work and leisure. I'd rather have more money in my pocket for investments, retirement and fun. Cars are not an investment
Picked up my 08' Cobalt until it died. Ran it for five years. Learned about undercoating in the Rust belt the hard way. Running another car I found inexpensive (13 C-Max). Intend to run it until it gives up too. Wild that both my vehicles combined cost less than a quarter of a cheap new rig.
@@swiss86how? Look at infrastructure and tell me how they force you to buy a car for commute and who are they. It takes some time to research but if a regular voter cannot do this kind of research I don’t think democracy works. I lost faith in the US democracy for a long time
Video didn't really mention that these EV cars/increased safety measures are mandated by the US government. There is a quota for emissions in a company's fleet and they have to have a certain number of EV models....hense, the Jeep 4xe. That cost then gets spread across their entire fleet of cars.
Good luck? The car manufacturers will eventually stop making them and stop supporting them (which will make repairs harder). They want new money. Same reason Disney keeps doing remakes: the old stuff can't generate new cash flow.
I buy very functional cars . Preferably base models with minimal switches. They last long . Even in India they are gradually turning vehicle ownership into a nightmare.
Best we can do is push button electric controlled transmission and electric controlled tailgate/trunk that breaks if you close it by hand (and adds $4000 to the price).
@ I never buy a car with a stereo. Only if my wife nags me pretty bad, do I get a cheap after market touchscreen with Bluetooth. My reasoning is… what good are $1300 iPhones if u use the cars entertainment system?
That is what is so frustrating. Not only more expensive but less reliable and prone to expensive problems due to poor quality design, materials and components. Paying more for less in effect.
Last two we've bought were around $25K. Honda Civic Sport and Hyundai Elantra SEL. You think after owning these my sons are going to buy a Ford or Chevy?
FYI every other country that is known for producing good cars (Japan, Germany, South Korea, France, UK, China etc) also have very reliable and efficient public transportation systems. So their respective automakers not only have to compete with foreign competition but also with trains, which forces to be even better. In America, our automakers don't have to deal with either.
The US is way too large and spread out for it to be effective. And most people don’t want to depend on a train schedule. They want to leave when they want to.
please do not mention germany here as a good example - they german car makers are doing exactly the same as the US ones - just a few days ago they announced massive layoffs because they missed their chance on the EV market...
@@shag139 Are you commuting from NYC to LA every day? Trains can absolutely handle a 20 mile commute, and the vast majority of people travel less than 20 miles to work and back. And Chicago and Indianapolis are cities of over 2 million people, and are less than 200 miles away. Trains can handle that distance too. Cleveland to Columbus to Cincinnati, Detroit to Cleveland or Chicago, Minneapolis to Chicago, Nashville to Atlanta, Austin to Dallas, LA to Vegas, there's a thousand places where a train line makes complete sense. The size of the US doesn't matter. The size of your city does, and the distance to the nearby cities. But to answer the original question: the US used to have really good trains and trams in every city, but the car makers actively destroyed them with lobbying to make it illegal for the trains to run more effectively, and then buying up profitable train lines and literally destroying the tracks, among other things. LA used to have the best tram system in the world.
@@shag139ahem, china has more bullet trains than then entire world. Insane number of electric buses and cars. Size is just an excuse billions want you to believe
Well German Car Brands are in a wierd state right now, base features are at a almost reasonable price but as soon as you want additional features or a ev the prices skyrocket to a point where the only logical explanation would be that manufacturers want customers to lease and give them a monthly income instead of a one time profit. And then there are cars like the Sandero or SpacStar for 15k so yea no way i'd ever buy a overpriced german plastic bucket
In Japan, they make more reliable cars for way less. They make new 600cc cars that cost around $11,000 new. Half that for used. The overpowered/overpriced/overweight car scam is a artificial setup.
I had a great little car in japan, loved it, miss it, I wanted to bring it back to the US. My only fear is that it would have been annihilated in an accident against the tanks here.
I will NEVER buy NEW car ever again. I only get used cars it's just not worth the expense. $80, $90, $100K for a Pickup Truck is CRAZY who buys these things
I've bought three brand new cars within the last 2 1/2 years. None was over $30K and one was $18.5K out the door. BUT I won't by a $50K pickup much less anything higher priced.
Who buys them? Business owners who need a write-off. They buy in December, take the write off, then bring it back to the dealer in Jan. or March for a check worth 90% of the value. If you know, you know. If you make an arrangement with the GM, he'll take care of you. You buy units to make him commissions, and he'll make sure you get the best trade-in value. Which helps them, because now they can sell "new" cars as used and keep more of the margin. Again, if you know the economics, it makes sense for those with the money.
Crossovers are not Sport Utility Vehicles. SUVs are built like trucks with a body sitting on a frame. Crossovers have a unibody chassis. And example of this is the Toyota RAV4 is built on the TNGA chassis like the Camry. The Toyota 4Runner is built on top of a frame like the Tacoma. This is a hard concept for a lot of people to grasp
Opinion on China aside, Chinese made cars in Australia has created a market where manufacturers are dropping prices to compete resulting in cheaper cars for the consumer.
True, but I've seen some recent exposes about them, that showed the cheap Chinese cars tend to be pieces of junk. Great Wall is reputed to be one of them.
What you describe is basically a race to the bottom. The US Industry used to do that, with each of the Big 3 automakers trying to outsell the other regardless of the profitability. Selling twice as many cars but at a loss turned out to be a really dumb idea. These days the regulations alone demand the investment of massive amounts of money, money they wouldn't have if they didn't hold the line on pricing and profits. The US manufacturers also don't have the ability to pay peanuts for labor and parts like China does. Do you really want American workers to also have to get food stamps and other government assistance on top of their pay? The answer in the US is going to come when the American consumers finally stop buying huge overpriced vehicles. Until the consumer demand changes, the manufacturers would be cutting their own throats to stop offering what the consumers want.
Wow! How is America even allowing Australia to do this? Is this how Australians repay American global leadership? Washington DC needs to demand that Australia stop Chinese auto imports. And instead import cars from America. If Australia does not comply, then those American submarines which are going to be delivered in 2183 AD under the AUKUS pact, will not be delivered until the 23rd century. Australians may have to pay double the current price, but seriously guys, can you put a price on freedom and democracy?
As an automotive shop manager, American car makers moved away from cars and focused on the money makers, trucks and SUVs. Japanese automakers like Honda, Nissan and Toyota are still making cars. Sure, they're much more expensive that they were 10 years ago. Our shop is seeing more people keeping Toyota and Hondas with over 200,000 miles. They're built much better than their counterparts.
good point and that is why american cars sales are close to zero outside the US. They don't sell in Europe and they don't sell in Asia and american manufacturer have been protected and bailed out by the US government more than once. The american manufacturers invested everything in what sells in the US, not a very good strategy in a world where you have to compete internationally to stay afloat. Unless you know the government will always come to rescue you like they are doing now with tariffs.
Tarrifs are a good thing, but I guess you want a cheap Chinese EV that burns down buildings. Same thing with VW they lied about battery safety and have been fined by the EU
Same old story: American greed, American catering to corporations, abuse of tax dollars to bail out corporations, and legislative approaches to handling competition instead of innovating.
America is a buissnes first, Everything is handle And dependent on the money. Under a capitalism so iety unlike other before hand EVERYTHING is depended on corporations for goods and services. The goverment takes hand free has much has possible. The price of freedom is the damnation of the ignorant fool, The good side of these freedom is that if you have 10M you have no limit.
More like dealerships sticking a 10k+ tag despite the manufacturer remaining roughly the same. For that reason, I just buy a used car in sub 100k miles and care for it, saving me the hassle and extra 30k sign up. What's better for the environment? Reuse comes before recycle. I can replace the engine and transmission 4 times before coming to that 30k markup.
I don't buy it. It seems like a conspiracy theory. I have had lots of not very bright tradespeople try and tell me, "Oil companies can charge whatever they want for gasoline, because they know you have to buy it". You can get what new car values were back to year 2000 on Carfax. Record the values then and now, then compare against the values the US inflation calculator shows.
@ when you have a greater supply of a product than a demand the prices go down since the buyers have leverage when the demand is greater then the supply the prices get higher. The latter is exactly what happened during Covid when the supply system was broken because of a pandemic. Caused high inflationary practices that takes a long time to actually recover from.
I don’t agree with tariffs but letting someone take advantage of you isn’t good. However, the U.S. automakers should stop overpaying CEOs, but that’s unlikely today because these companies want to also make investors happy. The government needs to revise dealerships regulations or actually take away dealerships.
tbf, the Chinese EVs aren't old enough yet to give us an accurate indication of their reliability, so they could be junk as well. I've seen reviews after one year of ownership, which were positive, but we'll have to wait and see.
Executive team pay is around $100 per car. Marketing is $12k per car. Marketing is necessary though, so I'm not sure what can be cut that would be meaningful.
@@haildrreaper US brands haven’t made a reliable car since the early 70’s. The only reason they’ve survived up to now is because of their deceptive marketing. Social media killed the domestic sedan.
@@jogana6909 because dumb people don’t know any better. And they’re in the millions. They think it’s normal that a tranny fails at 50k miles or 4 years. They think 10k miles oil change intervals are great.
The problem is, we dont let them fail. Quite simple, if toyota goes under, novody cares, but if gm goes under, the government step in. Why? Just bcause they are us brand? They dont even make their car in US anymore, honda toyota is more us made than gm and ford. Just let them fail, stop using government money keep bailing them out, keep their shareholders and executives accountable
@@Member00101 Anyone can check this for themselves by checking the 1st character of the VIN. If its: 1,4 or 5 = Assembled in USA 2 = Assembled in Canada 3 = Assembled in Mexico
@@Member00101 we all know that, they don't build their part in house anymore, it used to build everything down to the screw we're built in the same plant. That is not the issue, they did that change to just in time like Toyota did to cut cost, the problem is, somehow their cost is much higher than foreign brand, and their quality are crap, yet they still in business. Why? Because they don't need to worry about going out of business, Boeing is the same, so they don't care, they will get their money, either through sales or government hand out.
@@haihengh yeah the bailout of the big 3 was a huge mistake, only done because they were trying to protect union jobs. On one hand I get it because it's not the workers fault the management were idiots but that's the reality for just about every other worker in the private sector. I've lost a job due to bad management many years ago and there was no government bailout to save my employer back then. Cutting regulations across the board would help new competitors arise but as it stands it's a fascist style system where the US gov has teamed up with businesses.
@@Ziegfried82 It's political. Such large job losses hurt the economy, not only the employees but the local economies they support, e.g., restaurants, grocery stores, retail stores, service industries, etc. The existing administration would be blamed if they did nothing.
Kneecapping foreign competition with tariffs isn't going to make things better for American car makers. What they are supposed to do is get better, because all they are doing now is just slowing down the competition, not stopping. They never learnt this lesson when dealing with Japanese and Korean automakers, and they will fail to learn again.
@@darkstormincAnd if somehow it was the "evil" foreign company paying the tariff, all they'd do is stop selling it here and US customers lose. This is not an issue of China doing anything wrong, it's 100+ year old US car companies not being able to compete anymore and having massive bloated costs due to union workers. The UAW already bankrupted the US auto industry in 2008, they're working on bankrupting it again.
0:26 - "Automakers have resisted making cheaper ones" Correction: They are still making the cheaper ones, they are just charging customers more for them.
I love how they downplay chinese cars/EVs.....I think they forgot that American cars are seen as unreliable, that's why brands like Toyota and Honda are so strong in the US
Lol all cars are the same, I lived in England their precious land rovers are junk. VW has been caught many times in their lies. Toyota has major problems with their new vehicles ever since the new ceo took over. Lol what garbage propaganda that cars are magically better over seas
@Mayamax3 yeah my 2018 Honda Fit was the worst car I ever had. Water leaks, bad interior quality, and several engine issues. Never will buy a Honda again.
Yeah this checks out they originally sold the maverick for 20k flat and the demand was so high they raised prices and now it’s a 27k vehicle and there’s still plenty of demand
Nobody bought them. Simple. The trax is an example of a car people are actually buying as it’s a top 15 best selling car year to date. Can’t say the same for the other cheap cars that automakers made like the fit, versa note, focus, Cruze, sonic, etc. People complain about cars getting big, so why aren’t the best sellers changing? Like if a civic and Corolla are as big as a Camry was 20 years ago, why hasn’t the Corolla taken the Camrys place as the best selling sedan in America? Why hasn’t the Ranger taken the F150s place as the best selling truck? Like that’s the other thing that has to change to show people want cheap cars. Start buying the cheaper option and not more than what you need. Don’t just complain when it’s not there.
CNBC does not tell the truth about China, 1. China did subsidize all EV cars Made in China, including Tesla in Shanghai. 2. China does not subsidized gas cars, but gas cars in China are also cheaper than US. For instance, the cheapest Toyota Camery 2024 in China is 126,800RMB（or $17,532）in July 2024.
En lugar de explicar porque los coches americanos son tan caros intentan difundir mentiras dice china con las que explicar porque los coches chinos son tan baratos Hablan de trabajo forzado como si un coche fuese un edificio y no se necesitan ingenieros en lugar de personal no cualificado Si no se estudian las cartas de los bm problemas es imposible solucionarlos Aunque los coches chinos sean más caros eso sería sin explicar los precios de EEUU Pero cnbc solo está para hacer lobby
I'm my opinion, that's the benefit of competition. The price of big companies gas cars dropped dramatically. Before, most cars price matched the west. Now, new Chinese companies ev, hybrid, phev make cars cheaper and better in certain aspects. Big companies cars won't sell, therefore they have to drop price. When was the last time NA region had a real competitor to other companies with new technology?
@@magnopranckestradaJusto pense en eso, cuando dicen que las baterías pasan por una cadena que incluye trabajo forzado, yo les preguntaría cuantas empresas estadounidenses no usan baterías de litio que están relacionadas con trabajo forzado? Apple…
I only buy old cars. never new. I can easily afford a $100,000 car. I just chose not to buy one. My first car after high school in 1990 was a 1985 Volvo 780 coupe. I drove that car till 2006. I then bought a Volvo V70 without the turbo. I still drive that car. and its never seen a mechanic other than my own limited skills. I bought my wife a 2004 V70 in 2011 for $2,600, she still drives it, and it also has not needed any major work on it. Old cars are just reliable and cheap as long as you take care of them. $50,000 for a car is insane. There is no tech in a car that to me justifies that price. I have 2 cars with over 200,000 miles on them and they still drive like new. I have friends who have 2-year-old cars who can't say the same about their 50- and 60-thousand-dollar cars. NOT ONE OF THESE CARS TODAY ARE WORTH THE STICKER PRICE.
I tend to agree, but sometimes you have to know when to let go. I had a 2005 ford taurus. It's a decent car about about 9 months ago, the transmission died; more specifically the torque converter. I was extremely lucky that my dad is a mechanic and helped me fix it. He doesn't work on transmissions, but he knows enough to know what was damaged and how to replace it. I spent over $400 and many hours removing the engine and transmission. If I had taken it to a shop, that job likely would have cost far more than what the car is worth.
So what's the reason for the high costs of Chrysler/Jeep? Dealers are complaining they can't sell enough and the average number of days their cars sit on their lots is around 250.
That doesn’t make any sense. The people paying it can afford it, the people complaining about the prices can’t. It’s simple. Americans make affordable cars as well. This right wing propagandist crap is tired.
You can’t blame the consumer. I say blame the government for neglecting to develop a better transportation infrastructure in America. The government literally designed our city grids/roads to make us heavily rely on driving cars instead of you know using trains/public buses/subways.
I think it's also "the fault" of better quality vehicles than we used to get. A car will run fine for decades now, and not just if you barely drive it or pamper it, they just keep going. This means people aren't desperate for a new car, they are fine driving the ones they have, and if they need something new, they can get a used car for a fraction of the cost of a new one, that will still last for a decade or more.
Easy. -Eliminate Overpaid top execs destroying the company. -Allow customers to buy straight from manufacture. Eliminate mandatory dealership aka stealership.
Sounds like a great start. I'd do some followup by cutting the MPG requirements, emissions requirements, and safety requirements. Let the consumer decide how safe or how green they want their vehicle to be.
I paid $25,000 for a brand new 2017 Mustang, in 2017, still driving it into the ground. Next car I’m finding whatever is brand new for $25k and driving it into the ground too. These corporations have lost their minds.
basically a cheap mustang. course a $25,000 mustang from 2017, probably is over $30,000 today. a $25,000 vehicle is challenge today, wont be easier later either
I bought a 2009 Honda Fit new and paid $17, 074 with a cashier's check. It has covered 193K miles with very little in the way of repairs and (knocking on wood) still fires right up each and every time. I hope to cover 300K 'cause I really like the car.
well, most on the list are business. and businesses are in business to make money. OEMs make more from the higher MSRP vehicles than the cheap one, and dealer who set the FINAL price make more money from higher priced vehicles too. even during COVID/Supply chain crash, there people who have to have a vehicle to get to work (public transit isnt a thing almost everywhere in the US). well government in the US is driven more by corporations than its citizens, so not they wont step in to this. now banks why they would fund a loan for more than the asset (vehicle) is worth brand new. stimulus wasnt all that big for individuals, but it seems some businesses used it to stay afloat, or come back from the dead
If you think they're expensive now, wait till the Tariffs are in place and most of the the supply chain is in the US itself. Americans cars are all overpriced, while having inferior quality, anyway and this will 10x the problem.
@@amandagrant4331 Expensive doesnt mean quality. Especially looking at any American car. For example among EVs Teslas have the worst finishing and after service. BYD for example beats them in every department. Thats why Elon actually supported trump cuz he'll sink without the tariffs. Also the more expensive it gets, the more the market shrinks. When thinking quality and refinement somehow a ford or a GM is not what comes to mind, maybe its just me. Ps: Rather than expensive, i should have used overpriced in my original comment.
The US DOES make cheap cars, but they are expensive. There's a difference between "cheap" and "inexpensive". "Cheap" is a measure of quality. "Expense" is a measure of cost. It's the cheap man that spends the most money, because he has to soon replace the junk.
Unions? Resistant to automation and over reliant on manual labor? High wages? Outsourcing supply chain? Mandatory dealerships? Over spending on advertisements? Overly increasing wages to top management? Decisions... Decisions...
I had to go pretty far into the comments to find one that doesn’t just say that it’s because American companies just want to make more money. Did any of these people watch the video? 5% of the total cost goes to profit. 70% goes to making the vehicle. So…
Complain all you want but the fact is Americans have continued to buy these vehicles. There is no incentive for the carmakers to change until they start losing massive amounts of money.
America used to have small car makers to increase competition and stabilize prices, but like so many of our industries, government over regulation makes that impossible in modern times. Americans are left with whatever big business tells them they can have at whatever price they are forced to pay.
Here's a thought, make a good frame, good drivetrain, easy to repair, get rid of the touch screens, get rid of a lot of the features. You could radically reduce the number of parts necessary to create a vehicle if the goal was to make efficient, good for performance, ease of repair and long life span. Cars are far more complicated today than they need to be
@@硕耀梁 Smartphones are not cars. Cars are not smartphones. They serve completely different purposes. Asking this question is akin to "Why doesn't a plumber use a violin?"
Years ago I moved away from new cars. I write one check and thats it. If you have to borrow money then you cant afford it. 10 years ago I purchased a low mile great condition car for 3000. I drove that for 9 years. Two sets of tires, three batteries and some other maintence with total cost about 6k. Thats $55 per month over the years. I then saved money and bought a low mile 2016 car for 16,500 cash. I make good money and debt free except mortgage. Remember a car is a metal box that sits in your driveway 95% of the time. Stop caring about them and use your money for different things amd bettee investments.
I purchased a China suv in Costa Rica last month. Prior to buying it, we test drove a dozen vehicles. All of the Chinese vehicles offered a ton of safety features for a fraction of the other brands. At the end of the day the Chinese vehicles smoked all the other brands with a way longer warranty. For example ford is 3yo 36,000 miles, Toyota was 2yo 20,000 klm, while the Chinese were 5-10yo with 200,000 klms The dash screen is 15.6” with voice commands for just about everything from turning on the AC to rolling down the windows. We bought the Jetour T2
Short term gains are what is killing this country. Something very wrong when a Jeep has to retail for $90k because it cost $63k to build it. The production costs are out of control.
Years ago it was $45/hr but robots have taken a lot of assembly work. The problem is the pension owed to legacy employees even if robots took over current positions the automakers millions and millions of current and future pension debt.
@@knothead5 Labor is less than 10 percent. There's a lot of things that have driven up the cost of vehicles. The price of raw steel is a big one. Plus all the new technologies in a lot of them that are mentioned in the video. As well as increased government mandated safety and emissions standards that get stricter and stricter as well as more expensive as the years go by.
@@hkraytai I worked with a guy who was a UAW member. He said under a contract where he worked in the past, if a UAW member was on permanent layoff and took a job at, say, $10 an hour, the auto company had to make up the difference for the union scale.
@LS-uv9gg I hear you. One of my two was a replacement when a 16 year old pulled out of a side street, and we T-boned him at 50 mph. Fingers crossed, this is the last 2. We only drive 10k miles a year total, and our vehicles have 6k and 22k miles each.
As someone who's family has enjoyed *nothing but* foreign made cars, such as Honda, all their life: Your friends have *been* wrong for 30+ years. Foreign cars are the best cars. PERIOD. I loved our Honda CRVs, Hyundai Elantras, Accords and Civics throughout the years! Nothing beats foreign. Everyone knows that. Even Americans. Your friends need to do more research!
@ I have had only “American cars” for resale or flipping, I wouldn’t expend my money on two American things: cars or beers, I just buy Honda or Toyota nothing else, there was a time when my family owned an Acura RDX, Acura TSX, Honda Accord and Honda Civic, now i personally own a Camry 😉
Every time I see layoffs and the CEO getting compensated it makes me crazy, 1000 workers and CEO gets 50 million raise, that's the salary for all the workers for one year
Anyone can bolt lug nuts on all day. Very few people have the skills to manage an international company with hundreds of thousands of workers. When you find someone with those skills, you pay them well to keep them from leaving.
@@bwofficial1776 US wealth inequality reached proposterous levels. Over 40 years the bottom 90% got 26% more income, the top 1% got 150% extra and the top 0.1% paid themselves 345% extra. If you believe the elites are actually worth all that extra money on top of the very high income they already had, I have a bridge or two to sell you.
I imported my 800cc Daewoo Matiz - I get 51 MPG and can go on the highway with it (with the AC on, at least down hills :P) You'll never see me in anything over 10k, and that'll be paid out up front.
Honda Civic Toyota Corolla There, they are cheap, cheap maintenance and also really reliable. Stop buying CUVs, trucks and SUVs. Americans are at fault for supporting GM and Ford after they stopped making cars.
Base new Corolla LE goes for 30k out the door here including dealer markup, taxes, delivery fee etc. and this is the cheapest base trim, so not as cheap as you think!
This is hilarious. So let’s forget Toyota sells the Sequoia a rebadged Tundra for $80,000. Let’s ignore the fact Nissan will happily sell you a $70,000 Armanda Platinum as they desperately try to compete with Americans in full size SUVs and trucks. Chevrolet also builds a $23k Trax. Y’all are selective in your opinions and clearly disingenuous.
Spend your money wisely-invest in quality where it counts, for it often outlasts the cost of cheapness. Yet, remember that sometimes the simplest, least expensive option is the real gem in disguise.
I hope we all know that it doesn't matter who is in the 'top job' because this is a systemic problem -- greed. We have allowed many of our economic sectors, to take advantage of the American people. It's disgusting and frightening for the future of our country. My wife and I will be retiring in the next two years n another country. We are absolutely worried that SSI will no longer be funded. we'll have to rely on his pension, a 403 (b) and a very prolific Investment account with my Stephanie Janis Stiefel my FA. Our national debt is bloating and expanding every month. Our government needs to get spending under control and cut the federal budget.
@@rongendron8705 So American pay more just because Americans are rich? What kind of art of deal is this?😅 I don't think Donald Trump would like to hear that. He would be outraged!
@@gobimurugesan2411 You mean assured job security? Because that's what's most important. Still having that job to begin with. And nearly all government employees naturally get to keep those jobs for life + pension.
Problem is every American wants to be seen in a new flashy car to show it off. There is still great used Toyota, Hondas, for 13-15k that will outlast any of this new junk. No one is forcing people into a new car every 2-3 years
C'mon, not every American cares to be seen in a flashy new car. Just from the majority of comments on this video and those on other car related videos, most just want an affordable reliable car to get from A to B.
My friend lives in China and he told me that he bought an EV BYD for less than $25000 with plenty of tech and so far he said very reliable. I am still driving my 15 year old Honda and won't get a new car due to high prices.
@@lawrenceralph7481 A failing country lol. America's best days are behind it no matter who's in office. This country is falling apart and can't get it together while China's leadership knows what it's doing.
i doubt that's the case. three of my Chinese friends told me the EV craze there is just media hype, many young people ditched EV to buy Petrol cars in few months because those cheap EVs had plenty of cost cutting in all the wrong areas.
@@domjohnson2579 What do unions have to do with politics or policies of corrupt administrations behold to corporations and the rich? Besides Kamala works for the corporations as do all politicians, all corrupt criminals. Workers who see the benefits of unions have every right to unionize for better wages and benefits.
Because we deny competition from around the world (especially EVs) and tariffs on cars not made in America It’s just about keeping cheaper competition out to keep prices higher
On the topic of EVs most of those Chinese EVs don't meet American regulatory standards. You'd have to cut regulations or those vehicles still wouldn't be sold even without the tariffs.
@@Ziegfried82 If Chinese EVs can't pass US regulations without major modifications then why bother tariffs? The existing regulations would have kept Chinese cars out without tariffs. The fact is that without tariffs, the Chinese can easily modify their vehicles to pass US regulations and sell cheap EVs in the US. You just assume that Chinese regulations are much laxer than US regulations without even looking into the facts. One more thing, Chinese EVs are sold in many countries in Europe, and you can look into their crash test results to see how they are rated in Europe.
Who would of thought that putting all of your eggs on big expensive pick up trucks would not be sustainable. It’s not that America can’t built cheap cars, it’s that it’s not that profitable. They would rather tariff and banned all other affordable competitors and have you forever in debt than allow you to own a cheap car. If there’s any good news it’s that EVs are rapidly falling in price so there may be a way out for Americans.
@ramoraid Not true, you can get brand new Nissan Leaf for around the price tag of 28k. You do realize Tesla aren’t the only ones that make electric cars right? Also these are current price tag but every statistic indicates electric cars to get more and more cheaper in the coming years as productions increases and batteries and other components gets cheaper.
Well I suppose if everyone has to sit around and wait for their vehicle to charge at least it will end hustle culture. Of course many of us prefer a bit more freedom and self sufficiency.
well check Nissan, other than a few vehicles, they havent refreshed many of their vehicles. and they are just about to crash. but then model refreshes in the US is something that started in the 1920s.
You and just a handful of people would be the only ones. I've seen too many people post comments that they trade their cars in after just 2 or 3 years because they want the latest and greatest.
I'm currently in negotiations with a Subaru dealership to buy a 2024 Impreza base model for $21,500, plus tax and that includes destination..and they're willing to pay 110% of the KBB blue book value or the CarMax offer, whichever one is greater. They're trying to clear out the '24 models with the '25 models coming in soon. It has a decent sized cargo area, is plenty roomy for 4 adults and has a very comfortable suspension. Subaru is offering 2.9% APR for 48 months this month on the Impreza's. There is no reason to drop $50,000+ on a brand new vehicle, if the monthly payments are more than 10% of your total income. There are reasonably priced cars and most manufacturers usually have special in-house financing if you do your research.
@@stephenriggs8177 Oh wow, yeah if it only has 40,000 miles, there is no reason to get another car unless you just really want something new with the latest and greatest in technology and automotive advancements (no judgement there, we all like new and nice things). For me, I plan on doing about 25,000 miles per year, so I'll probably keep it until at least 100k/4 years and then consider whether or not the suspension parts are starting to go out and will need a full rebuild, and what those costs are.
I have a 2018 Honda Accord. Bought it in 2018 at the time driving over 150 miles a couple times a week. Went full remote in 2020. Only has about 42,000 miles on it. Plan on keeping it as long as it will run. I don't have a car payment.
#1 greed, #2 emissions driving the prices up, #3 people want there vehicles to be smart phones, #4 people continue to pay these prices, keeping the costs high.
Uh .. wrong on #2, unless you buy something like a 760HP Ford Mustang Shelby GT 500, which has a gas guzzler tax. The video talked about the reason why, I think in the second of the four segments. The Big-3 make more profits per vehicle on trucks and SUVs. So, they stopped making sedans.
Meanwhile in Australia just last month another 7 electric car companies started selling here. The Chinese and Korean electric cars are way better quality than Tesla's and are way cheaper without ridiculous tariffs
Yep, and better built (as well as far more technically advanced) than the crude unreliable trucks we still get from the US. Face it, like Musk the Chinese saw there was a really lazy and stagnant world car industry that was absolutely ripe for disruption but they saw they were in a far better position than any US company to do that disruption.
The Teslas sold in Australia are from China. Are BYD and SAIC hand picking the best workers? I know the Shark is a pretty good truck for BYD's offering but it's made in the same country as the M3. Kia/Hyundai are all made in South Korea.
The future of transportation isn't cars anyways. It's electric mass transit and bicycles. That's not to say people in rural areas won't drive cars still, they of course will. But it makes little sense for most people in cities or suburbs to drive a car every day. The reason they do now is due to a lack of public transportation infrastructure and poor development pattern designs which make it less safe to walk or bike despite it having the potential to be more convenient. Any public policy which goes towards subsidizing cars or gas or more roads is a policy failure. We've done that for 80 years and it has caused a traffic and environmental nightmare and made our cities treacherous, miserable places.
They make cars that are unnecessarily expensive, complicated and hard to repair just to make high profits. Every car manufacturer should listen to the consumers and start making cars that the average person want. VW did this many years ago and the car was called VW Beetle. Simple, durable, inexpensive and easy to maintain and repair. Chinese competition and EVs are saving the consumer once again.
Americans demand big trucks and SUVs that are loaded with all the bells and whistles, which is totally unnecessary for the average person. We are the reason vehicles are so expensive. Go back to smaller sized cars that more basic and the price will be significantly less.
I've been driving a truck for 30 years. Trucks never needed bells and whistles, but they are impossible to get without them anymore. Unfortunately for those of us who would still like to be driving a 30 year old vehicle, planned obsolescence has also been part of the carmakers' racket.
Nah, us car companies decided they'd only make light trucks because emissions regulation has a carve out for light trucks. This, they've put all their advertising into small trucks, which is pickups and SUVs and the like.
I remember when the Toyota Aygo was introduced in Germany in 2005 it's price was 10,000€. I drove this car for over 10 years and I was very satisfied.😊
I will never buy another American car as long as I live. Bought a Ford brand new off the lot in 2016 and within the course of 87k miles it has had 3 blown engines and a blown transmission. Worst investment I have ever made.
@ The attitude in your reply is the reason why we are never gonna get good products. Stop making excuses that let these companies off the hook. although I did my research please inform me what research would tell me that my regularly dealership serviced vehicle would get a catastrophic failure in the engine at 60k miles? Again after an engine replacement at 70k miles and again at 85k miles (all under warranty)? Let’s use common sense. Or was it more likely poor craftsmanship that was not designed in the interests of the buyer?
Title should say "why automakers WON'T make cheap cars"
The government
Profit. The margins are slimer and those customers probably won't be able to add upgrades.
Plus, why buy an expensive new cheap car when you can get more bang for your buck with used.
@@B86432
The government has control over emission standards and setting fuel economy standards, not car prices.
The item should be "good cars". We in Europe sell the Ferrari's, Bugatti's and Lamborghini's. We are in a different level of customer base. Trump has a Ferrari, a Mercedes and 2 Rolls Royce's. Musk has 8 European cars.
You're also about to deport cheap labor. Good luck that.
Mechanic of 24 years here ... They CHOOSE not to make a cheap car. PERIOD.
Monopolies and collusion - keep the asking prices high.
It’s illegal to make a cheap car. They’re full of unnecessary garbage, VVT, fuel injection, EVAP, cameras, air bags etc the list is endless.
@@blueoval250 It's difficult to tell, because of Poe's Law, if this parody. Fuel injection is amazing. VVTi is amazing. Evap, doesn't hurt a car, but it's decent for getting rid of vapors. The rest of the stuff, I don't care about.
@ of course it’s not parody. Ferrari engines are amazing. They aren’t cheap.
A vent is wonderful for getting rid of vapors. You don’t need solenoid valves, canisters, sensors etc
You don't even need to be a mechanic to figure THAT out right from the get go!
They make a lot of cheap cars; they just dont sell them inexpensively.
Americans refuse to drive small cars. Cheap cars are mostly small cars.
@@alphatrion100 Reading comprehension must not be ur thing. Cheap cars, he said. Not inexpensive. He was being clever but you really missed the point
let's just take claim from the beginning of the video: "basic automobile is 50 000 OR MORE".
now google this "cheapest honda in usa". it's 17k fit and 21k $ civic. what the hell is crooked nbc talking about?
edit: that's price in uk pounds, and fit probably doesn't sell in usa. in usa civic starts at about 25k $.
still, that half the 50000 for "basic" car. that average car price is pumped by americans loving suvs and trucks. and that's nonsense.
@@ivok9846i think the point here that driving a suv or truck being the normal(what's american are known for) hence make them basic cars in the US
Well said
Once again, in my opinion, the term “cheap” is being misused. U.S. automakers do make “cheap” cars but “inexpensive” they are not.
No, There are not, electric cars are expensive the basic price for one is 20.000
I think they mean affordable.
I work with guys that buy 100k trucks just to drive back and forth to work. Then they put 12k worth of wheels and tires on them and complain about the gas prices
😂
Sounds like the average American to me, sadly.
@ and they’re already expecting no taxes on overtime and income tax 😂😂. Everyone that works shift work in refineries is expecting it
Stupid is as stupid does. Eventually, like gravity, the economics will catch up.
Freedom to be stupid and the fool is always easily separated from their money.
I remember a time when $30k got you into premium car territory. This is just sad.
Bro, that was like the late 90’s/early 2000’s! That’s no coming back 25 plus years later. Instead, you will be lucky to ever a basic new car at that price! Most people shopping in that bracket now are looking for used cars!
@@Aggie4life77and 90’s cars were the most reliable, and they haven’t made plastic powertrain parts yet
@@Aggie4life77 $30k for used cars? No not really unless they have 100 miles on them or something.
@@Aggie4life77 Nah I leased a 2013 Acura ILX that stickered for $29k then I leased a base 2015 Cadillac ATS that stickered for $34k after that so it's been way less than 20 years since you could get a premium brand car for around $30k.
Like 2018 :)
"Automakers WON'T make cheap cars because they addicted to selling overpriced crap cars and don't want foreign competition" - FTFY
This million times. They'd lobby to make sure other automakers never make it to the state.
and dealers wont order them if they did
@@Erik_The_Viking so let me get this right with regards to US brands:
They make cheap junk cars, but they don’t wanna sell them cheap for what they’re truly worth.
You are completely right, they can import from South America where they assemble good economic cars that won’t brake your bank account.
Nope. Americans will no longer buy 'cheap' cars. By 'cheap' I mean smaller cars with few options. Americans want ALL the options...powerful engines, all wheel drive and ALL the luxury options but they want to pay economy cars prices. Americans have become childish and greedy.
Normal EVs are $10,000 a pop in China.
Chinese performance EVs are $20,000 each.
Americans are paying exorbitantly for their vehicles.
They live In a communist society moron
No. 10k USD cars are too cheap and quality is not very good. Normal sold EVs here in China are around 15K~20k USD.
@@benwang9401 considering their counterparts in the US are 45-50k, the point of value for the price remains.
@@mikeziegler4337stop believing propaganda. You ever been to China? They're social capitalist and even better capitalists than the US in some ways.
@@mikeziegler4337also look up what communist actually means before you embarrass yourself again
Just bring back basic sedans man. Not everyone wants a truck or SUV 😭😭😭
🎯
Tesla Model 3
The problem is that most Americans do want trucks or SUVs
They would if people brought them trust me.
Would rather have a hatchback
Toyota should start selling cars directly to customers. I'll pay the same money, just spare me the humiliation of talking to a professional liar.
😂 I agree!!!
Illegal in some states, including Texas which is ironically the North American headquarters for Toyota and is also home to Toyota’s largest American factory.
I bought a used Toyota Avalon from off a lot a few months ago. After 6 hours of back and forth, we drove the car home. By the time we got home, we didn't rely care that we had bought a fancy newish car. We were happy it was over. They had sucked all the fun out of it.
Exactly!!!
Government made it that way. They protect dealers.
Its not just competition that they're afraid of. They're against the right to repair.
And the sell the most unreliable junk
Like John Deere.
I'm convinced the automakers compel their stylists and engineers to deliberately design vehicles that are almost impossible for shade tree wrenchers to work on.
Normal competition will affect "national security". The logic is shameless
Thousands to repair anything. Months of waiting for a single, small part.
I own a 17-year-old Japanese car, and I'm spending $2,400 to fix everything wrong with it. It's in the shop right now and will be pretty much "brand new" when it's done. The odometer reads 250,000 miles, yet even in -40°F weather, it has never stalled on me. The heat works perfectly. So why would I buy a new car? The money I saved went into a high-end gaming rig. Buying a new car is an emotional purchase, not a rational one. Some might argue it's for the manufacturer's warranty, but you can purchase warranties for used cars too, or you can just put money aside every month to account for possible repairs instead of paying interest. Do the math and ignore the rest.
My car has 203K on the odometer and has never let me down either. The maintenance has been non existent (knock on wood) outside of routine services like oil changes, brake pads, etc.
The only complain I have about my car is there’s no backup camera, although I know can install one.
Other than there’s Bluetooth, AC, and I average 31 MPG. Works for me.
When my 20 year old Japanese car craps out, I'm going to replace it with another used one. Bought it for $3200 4 years ago and it hasn't had many issues
Protest with your wallet. Stop buying these cars! It's that simple. We as tax payers bailed these aswholes out back in 08 and now they squeezing us? Just stop
You know they classify these companies as to big to fail. We'll just bail them out again.
@@dakawans83it's because of the jobs and industry, they will always protect it
You’re absolutely right. They are making them because enough Americans still buy them.
I need a car to keep money in my wallet.
@@Distortic you need a brand new 50k+ car right off the lot?
Funny that they didn't mention that American automotive CEOs make TEN times more than European or Asian ones. When an executive makes 700 times more than the average worker, they might be the problem.
And what about the most overpaid factory workers on the planet? No blame for them? Their payrolls are a hundred times the executives.
@@domjohnson2579 The factory workers for Mazda, Honda, Toyota, VW, Volvo, Subaru, Audi, are paid just as much as Ford, GM and Chrysler, but their CEO's make less and many of them outperform the American companies. It's not the workers' fault.
@@domjohnson2579 So, I looked it up... average salary for a car factory worker in Japan is $39K a year. Average for the UK is $41K, and in the US it is $34K. Clearly salaries are not the main problem.
It's important to consider that many foreign brands have factories in the US that actually pay better wages.
You can't just look at the salary. US workers also get end of the year bonuses (profit sharing) and insane health plans... that's why they call them Cadillac health plans. Add on top of that the pensions until death. When you factor in those extras the actual costs per employee hour of labor goes up about 70%. To be fair, EU and Japan subsidize some of those costs by providing national health care but that's hard to calculate because it ends up working like a flat tax. When you compare the median worker pay to the median vehicle price you see the US worker is making somewhere between 60 to 100% more than their foreign counterpart - at least by purchasing power of being able to buy the very car they make. Maybe not housing, but that's another issue.
They are the company owners voice, if you dont like it change to other brand. Period
Drive a big car and neglect your retirement. The American way
MERICA!!
And haul the boat and camper too! All for a nickel down and a nickel a month.
Small cars aren’t suitable to everyone’s work and personal lifestyle. I stopped buying small cars because I couldn’t easily fit my equipment in it and it wasn’t comfortable on long road trips which I frequently make. I got a hitch put on my crossover SUV because I need to move furniture out of a storage out of state. The alternative would be to have to fly down and drive a Uhaul back or hire a moving company. Much cheaper this way.
@@anndeecosita3586 you still made a mistake, you could've purchased a uhaul truck.
🤣🤣🤣
"People want all the bells and whistles" I find that hard to believe, are there really a lot of people asking for "parking assist?" If you can't parallel park you shouldn't have got a license
Yup. And the GOVERNMENT is making it STANDARD equiptment.
Its the GOVERNMENT that's forcing this over complicated trash.
Don't get us started on the emissions nonsense.
You think parallel parking is the same in China comparing to the US? 95% of the drivers in the US wouldn't pass the Chinese driving test period.
the outdated dealership model is also to blame. Dealerships saw the prices they were selling at during the pandemic and wanted to continue those high prices
Make TOYOTA 🗾 Great Again 😎 Scotty Kilmer
They’re like barbers
35 dollars is the new regular price in a lot of shops nos
@@anthonyfournier173160 to 90
@@anthonyfournier1731 I don't understand why people just don't by a machine and do it themselves at home 🤷🏾♂️.
Way too many bad dealerships out there making that case. If dealerships want to gouge customers non stop they should not be surprised when they get cut out of the picture.
Forty years ago the Big Three US automakers complained that the Japanese cars companies were playing unfair because the Japanese were making better, more reliable, more fuel efficient, and cheaper cars than the American brands.
They upped their game too, for a while.
Back then the profit margin on a Japanese car was lower than the US automakers were paying to the union pension per vehicle. And on top of that the Japanese cars were better and cheaper and more fuel efficient. It’s a miracle the US automakers survived as long as they did.
@@omnimoeishJapanese workers are union to. And the US automakers are not going away. GM recently posted ots best qtr yet.
Have you not lived in America. America is afraid to compete in a world market. Cuz when they do they fail.
@@Thunderrolls87none of the Japanese plants in the US are union, foreign automakers deliberately build plants in areas that are extremely rural and in states that don’t like unions to get around expensive labor. Nissan started this trend when they build the Smyrna TN plant back in the early 80s and got huge tax breaks and because there is almost no competition in the labor market around that region they can get away with paying less.
Unions absolutely have a big part on the cost of vehicles. I am pro union and have had plenty of family that worked for labor unions.
Another misconception is all Japanese vehicles are better made and that just isn’t true. Toyota are the only ones who have a strict QC process with its part suppliers and line workers while companies like Nissan and Subaru have had tons of quality issues. The Japanese labor force is generally more disciplined and care about doing a good job more so than Americans but almost every Japanese vehicle you buy in the US is made in North America
We can complain about government subsidies in China all we want but remember we bailed out GM in 2008 and in the following years GM sales in China went up by 1 million per year. China did not complain about that.
Toyota received bailout money too
@@Viper81766 um.. won't be the last time.
Bailed both Ford and Chrysler.
@@TheSjuris I don't think Ford got any money. They planned in advance for funding.
@@Viper81766from who?
GM CEO Salary - $27mil
Ford CEO Salary - $30mil
Chrysler CEO Salary - $39mil
Gee, I wonder why cars are so expensive.
This is irrelevant because European and Asian brands have experienced the same price hikes.
@Jbghkkjkkyyf
Toyota CEOs and other Japanese auto manufacturers have similar salaries. 😮💨
Stop making excuses for abusive wealth hoarding practices
And before you say it, no, I'm not jealous.
@@billnye69 slow down. I’m not making excuses, OP specifically mentioned GM, Ford and Chrysler as if this is merely an American car company problem.
You are thinking wayyyyy to deep into this my friend
GM sold 6M cars 2023 so "cost of the CEO" per car is around $4.50 per car. Note: It's more because salary is only part of the CEO's total compensation. The whole executive team compensation is likely around $100 per car.
I find it quite interesting to see one person with a $80,000 new shiny pickup truck driving to their local Dollar General store and hauling a bag of groceries to their old trailer home.
You can’t show off your home like you can with your car. Americans are stuck in this mindset until the limit is absolutely reached.
The human need to project status can't be underestimated. It seems like people are desperate to attain their desired identity at almost any cost. There's a reason why Bernard Arnault, owner of LVMH is in contention for wealthiest person in the world.
That’s sad 😢😢
Thats no different than someone on food stamps with a Coach bag other than it's worse.
I seen a lot of homeless people sleeping on their new car models.
Just bring back a basic car or truck, that has zero tech, roll up windows, just an ac and a heater and a radio, and sell that. Not every one wants an iMac on wheels..
If that was a profitable business, then why haven't any competitors entered the market and produced such a product?
@ because in America at least. It seems like most people want a very tech loaded car, that is also very expensive, and very big. Plus if we keep buying this cars what incentive do big corporations have to drop prices. Hell if people are buying my cars for 80k I’m not dropping prices either.
@@luxPacificusbecause americans have an attitude of bigger is better
You can buy cars at auctions that are regular car
Ford Maverick XL hybrid. Bought a 2024 for $24000, and I love it, $24k and 42mpg
The older you get the wiser you get. I don't need fancy and the greatest. Just basic transportation for work and leisure. I'd rather have more money in my pocket for investments, retirement and fun. Cars are not an investment
They are a depreciating asset that's for sure. And the fancier the car, the more expensive the maintenance.
Not only do all those gadgets and gizmos increase the cost of a vehicle, they increase repair costs as well.
Why, that is UNAMERICAN!
My car is an ‘03, wheels haven fallen off just yet.
Picked up my 08' Cobalt until it died. Ran it for five years. Learned about undercoating in the Rust belt the hard way.
Running another car I found inexpensive (13 C-Max). Intend to run it until it gives up too.
Wild that both my vehicles combined cost less than a quarter of a cheap new rig.
What if I don’t want an EV, self-driving, technology-driven car?
Bingo. They force expensive crap on us we don’t want.
@@swiss86how? Look at infrastructure and tell me how they force you to buy a car for commute and who are they. It takes some time to research but if a regular voter cannot do this kind of research I don’t think democracy works.
I lost faith in the US democracy for a long time
@ every person they interviewed was like “you gotta pay for all these cool new advancements somehow” but I don’t want them lol
Video didn't really mention that these EV cars/increased safety measures are mandated by the US government. There is a quota for emissions in a company's fleet and they have to have a certain number of EV models....hense, the Jeep 4xe. That cost then gets spread across their entire fleet of cars.
Good luck? The car manufacturers will eventually stop making them and stop supporting them (which will make repairs harder). They want new money. Same reason Disney keeps doing remakes: the old stuff can't generate new cash flow.
I'm an old guy, but I remember when all people wanted in a car was for it to run well and have a stereo and heat / air.
I buy very functional cars . Preferably base models with minimal switches. They last long . Even in India they are gradually turning vehicle ownership into a nightmare.
Best we can do is push button electric controlled transmission and electric controlled tailgate/trunk that breaks if you close it by hand (and adds $4000 to the price).
@LifeisGood762 lol
Stereo? Ooo-la-la! 😂 I would totally take crank windows, but I wonder how much money would it save to get rid of the "unnecessary" technology.
@ I never buy a car with a stereo. Only if my wife nags me pretty bad, do I get a cheap after market touchscreen with Bluetooth. My reasoning is… what good are $1300 iPhones if u use the cars entertainment system?
avg cars being $50k is crazy. most of these cars are only worth half that and constantly using cheaper materials
That is what is so frustrating. Not only more expensive but less reliable and prone to expensive problems due to poor quality design, materials and components. Paying more for less in effect.
In the UK this is more like $60k!
Last two we've bought were around $25K. Honda Civic Sport and Hyundai Elantra SEL. You think after owning these my sons are going to buy a Ford or Chevy?
A limited number of manufacturers jointly monopolized the market.
I dont get it you can buy an entry level sedan with low miles for 15,000. Just never buy a brand new car.
I love how as expensive as they are, they also consistently rank at the bottom of car reliability surveys
Tesla usually ranks near the bottom in reliability.
big three quality is in the toilet.
especially stellantis
Make TOYOTA 🗾 Great Again 😎 Scotty Kilmer
@@subaruamazon”big 3”
You mean the failed 3😂
So the average car price is $50,000 and 25% ($12,500) is spent on marketing? Thats insane.
PER UNIT. Ford's third quarter sales (worldwide) were $46 BILLION. If they're spending even 15% of that on advertising, that's absurd.
@@citylumberjack9169 If you watch ads you see a lot of car ads so they are getting impressions for their ad spend for sure.
FYI every other country that is known for producing good cars (Japan, Germany, South Korea, France, UK, China etc) also have very reliable and efficient public transportation systems. So their respective automakers not only have to compete with foreign competition but also with trains, which forces to be even better. In America, our automakers don't have to deal with either.
The US is way too large and spread out for it to be effective. And most people don’t want to depend on a train schedule. They want to leave when they want to.
please do not mention germany here as a good example - they german car makers are doing exactly the same as the US ones - just a few days ago they announced massive layoffs because they missed their chance on the EV market...
@@shag139 Are you commuting from NYC to LA every day?
Trains can absolutely handle a 20 mile commute, and the vast majority of people travel less than 20 miles to work and back.
And Chicago and Indianapolis are cities of over 2 million people, and are less than 200 miles away. Trains can handle that distance too. Cleveland to Columbus to Cincinnati, Detroit to Cleveland or Chicago, Minneapolis to Chicago, Nashville to Atlanta, Austin to Dallas, LA to Vegas, there's a thousand places where a train line makes complete sense.
The size of the US doesn't matter. The size of your city does, and the distance to the nearby cities.
But to answer the original question: the US used to have really good trains and trams in every city, but the car makers actively destroyed them with lobbying to make it illegal for the trains to run more effectively, and then buying up profitable train lines and literally destroying the tracks, among other things.
LA used to have the best tram system in the world.
@@shag139ahem, china has more bullet trains than then entire world. Insane number of electric buses and cars. Size is just an excuse billions want you to believe
Well German Car Brands are in a wierd state right now, base features are at a almost reasonable price but as soon as you want additional features or a ev the prices skyrocket to a point where the only logical explanation would be that manufacturers want customers to lease and give them a monthly income instead of a one time profit. And then there are cars like the Sandero or SpacStar for 15k so yea no way i'd ever buy a overpriced german plastic bucket
In Japan, they make more reliable cars for way less. They make new 600cc cars that cost around $11,000 new. Half that for used. The overpowered/overpriced/overweight car scam is a artificial setup.
I had a great little car in japan, loved it, miss it, I wanted to bring it back to the US. My only fear is that it would have been annihilated in an accident against the tanks here.
@stalex801 I would feel the same. however I could still get scrapped by a semi while driving any american car.
kei cars are great when the roads are orderly and not a lot of distracted/drunk drivers.
Make TOYOTA Prius Great Again 😎 Scotty Kilmer
Gas cars are expensive on purpose so people move to electric cars which they can control and shut down.
I will NEVER buy NEW car ever again. I only get used cars it's just not worth the expense. $80, $90, $100K for a Pickup Truck is CRAZY who buys these things
unfortunately used cars are running at new car prices. Well, they would be if cars still sold in the US. But it's mostly crossovers and SUVs.
I've bought three brand new cars within the last 2 1/2 years. None was over $30K and one was $18.5K out the door. BUT I won't by a $50K pickup much less anything higher priced.
Who buys them? Business owners who need a write-off. They buy in December, take the write off, then bring it back to the dealer in Jan. or March for a check worth 90% of the value. If you know, you know. If you make an arrangement with the GM, he'll take care of you. You buy units to make him commissions, and he'll make sure you get the best trade-in value. Which helps them, because now they can sell "new" cars as used and keep more of the margin. Again, if you know the economics, it makes sense for those with the money.
@@turbo8454 Oh yea? What did you buy?
Plenty of people live on credit cards. So, yeah, those expensive pickups are selling fast.
Crossovers are not Sport Utility Vehicles. SUVs are built like trucks with a body sitting on a frame. Crossovers have a unibody chassis. And example of this is the Toyota RAV4 is built on the TNGA chassis like the Camry. The Toyota 4Runner is built on top of a frame like the Tacoma. This is a hard concept for a lot of people to grasp
Opinion on China aside, Chinese made cars in Australia has created a market where manufacturers are dropping prices to compete resulting in cheaper cars for the consumer.
True, but I've seen some recent exposes about them, that showed the cheap Chinese cars tend to be pieces of junk. Great Wall is reputed to be one of them.
That's why we shouldn't resist china, it'll eventually fall or give us a good deal . @@jublywubly
What you describe is basically a race to the bottom. The US Industry used to do that, with each of the Big 3 automakers trying to outsell the other regardless of the profitability. Selling twice as many cars but at a loss turned out to be a really dumb idea. These days the regulations alone demand the investment of massive amounts of money, money they wouldn't have if they didn't hold the line on pricing and profits. The US manufacturers also don't have the ability to pay peanuts for labor and parts like China does. Do you really want American workers to also have to get food stamps and other government assistance on top of their pay? The answer in the US is going to come when the American consumers finally stop buying huge overpriced vehicles. Until the consumer demand changes, the manufacturers would be cutting their own throats to stop offering what the consumers want.
@@jublywubly brainwashed. Cars always have opportunity to crack, no matter ev car or mechanic car.
Wow! How is America even allowing Australia to do this? Is this how Australians repay American global leadership?
Washington DC needs to demand that Australia stop Chinese auto imports. And instead import cars from America. If Australia does not comply, then those American submarines which are going to be delivered in 2183 AD under the AUKUS pact, will not be delivered until the 23rd century.
Australians may have to pay double the current price, but seriously guys, can you put a price on freedom and democracy?
As an automotive shop manager, American car makers moved away from cars and focused on the money makers, trucks and SUVs. Japanese automakers like Honda, Nissan and Toyota are still making cars. Sure, they're much more expensive that they were 10 years ago. Our shop is seeing more people keeping Toyota and Hondas with over 200,000 miles. They're built much better than their counterparts.
What do you think of the RAV4 ? According to Google it is below average price yet should tick a lot of peoples want boxes.
Part of the reason that American automakers focus on trucks and SUVs and why they are more profitable is because of government regulations.
good point and that is why american cars sales are close to zero outside the US. They don't sell in Europe and they don't sell in Asia and american manufacturer have been protected and bailed out by the US government more than once. The american manufacturers invested everything in what sells in the US, not a very good strategy in a world where you have to compete internationally to stay afloat. Unless you know the government will always come to rescue you like they are doing now with tariffs.
EPA doesn't allow good vehicles period. It's the government. Manufacturers want to make smaller cheap trucks but aren't allowed to
Tarrifs are a good thing, but I guess you want a cheap Chinese EV that burns down buildings. Same thing with VW they lied about battery safety and have been fined by the EU
Same old story: American greed, American catering to corporations, abuse of tax dollars to bail out corporations, and legislative approaches to handling competition instead of innovating.
Very true. But Republicans continue wanting to blame working class Americans instead. Shame.
And America workers gets overpaid and is lazier than chinese. Get rid of unions and lobbyists alike.
Slava TOYOTA 🗾 Scotty Kilmer 😎
America is a buissnes first, Everything is handle And dependent on the money.
Under a capitalism so iety unlike other before hand EVERYTHING is depended on corporations for goods and services. The goverment takes hand free has much has possible.
The price of freedom is the damnation of the ignorant fool,
The good side of these freedom is that if you have 10M you have no limit.
Union greed.
The marketing costs are insane.
after covid, automakers realized that they can double to tripple car prices and people still buy.
Chevy and Ford got out of the car business in 2018.
Idiots buy.
More like dealerships sticking a 10k+ tag despite the manufacturer remaining roughly the same.
For that reason, I just buy a used car in sub 100k miles and care for it, saving me the hassle and extra 30k sign up. What's better for the environment? Reuse comes before recycle.
I can replace the engine and transmission 4 times before coming to that 30k markup.
I don't buy it. It seems like a conspiracy theory. I have had lots of not very bright tradespeople try and tell me, "Oil companies can charge whatever they want for gasoline, because they know you have to buy it". You can get what new car values were back to year 2000 on Carfax. Record the values then and now, then compare against the values the US inflation calculator shows.
@ when you have a greater supply of a product than a demand the prices go down since the buyers have leverage when the demand is greater then the supply the prices get higher. The latter is exactly what happened during Covid when the supply system was broken because of a pandemic. Caused high inflationary practices that takes a long time to actually recover from.
They put tariffs on Chinese cars so can charge you 60k for a junk jeep.
I don’t agree with tariffs but letting someone take advantage of you isn’t good. However, the U.S. automakers should stop overpaying CEOs, but that’s unlikely today because these companies want to also make investors happy.
The government needs to revise dealerships regulations or actually take away dealerships.
tbf, the Chinese EVs aren't old enough yet to give us an accurate indication of their reliability, so they could be junk as well. I've seen reviews after one year of ownership, which were positive, but we'll have to wait and see.
Fiat +Jeep =junk .
@@theotheleo6830I've owned over 60 vehicles, cars, trucks, vans, and European cars, but never owned an Asian car. Would never risk my life in one.
I don't care Chinese cars or whatever. I just want to be able to afford a new car.
Its expensive because they have to pay millions of dollars to their many executives and billions of dollars to their shareholders.
and trillions to union bosses
5 years i never got a penny as a share holder. so stop it russian bot
Average non skilled assembly workers making $31 an hour doesn’t help. Actual labor cost is about $73 an hour.
The workers aren't getting paid enough to do all that lmao@@SgtJoeSmith
That's pocket change compared to what they pay politicians to keep that way...
I work for one of the big 3. I can promise you, the executives pay packages and shareholders dividend payments take precedent over reasonable prices.
THANK YOU.
Executive team pay is around $100 per car. Marketing is $12k per car. Marketing is necessary though, so I'm not sure what can be cut that would be meaningful.
It’s not just the price. They can’t seem to make reliable cars anymore.
There's no money in it they want to keep selling you new ones.
If the car need repairing every week, the makers can get more profit
@@haildrreaper US brands haven’t made a reliable car since the early 70’s.
The only reason they’ve survived up to now is because of their deceptive marketing.
Social media killed the domestic sedan.
@@jogana6909 because dumb people don’t know any better. And they’re in the millions.
They think it’s normal that a tranny fails at 50k miles or 4 years.
They think 10k miles oil change intervals are great.
That's by design. Repair and buying another one is how they stay in business
The problem is, we dont let them fail. Quite simple, if toyota goes under, novody cares, but if gm goes under, the government step in. Why? Just bcause they are us brand? They dont even make their car in US anymore, honda toyota is more us made than gm and ford. Just let them fail, stop using government money keep bailing them out, keep their shareholders and executives accountable
US vehicles are assembled in the US but the parts are all made overseas with very few exceptions.
@@Member00101 Anyone can check this for themselves by checking the 1st character of the VIN. If its:
1,4 or 5 = Assembled in USA
2 = Assembled in Canada
3 = Assembled in Mexico
@@Member00101 we all know that, they don't build their part in house anymore, it used to build everything down to the screw we're built in the same plant. That is not the issue, they did that change to just in time like Toyota did to cut cost, the problem is, somehow their cost is much higher than foreign brand, and their quality are crap, yet they still in business. Why? Because they don't need to worry about going out of business, Boeing is the same, so they don't care, they will get their money, either through sales or government hand out.
@@haihengh yeah the bailout of the big 3 was a huge mistake, only done because they were trying to protect union jobs. On one hand I get it because it's not the workers fault the management were idiots but that's the reality for just about every other worker in the private sector. I've lost a job due to bad management many years ago and there was no government bailout to save my employer back then. Cutting regulations across the board would help new competitors arise but as it stands it's a fascist style system where the US gov has teamed up with businesses.
@@Ziegfried82 It's political. Such large job losses hurt the economy, not only the employees but the local economies they support, e.g., restaurants, grocery stores, retail stores, service industries, etc. The existing administration would be blamed if they did nothing.
Kneecapping foreign competition with tariffs isn't going to make things better for American car makers. What they are supposed to do is get better, because all they are doing now is just slowing down the competition, not stopping. They never learnt this lesson when dealing with Japanese and Korean automakers, and they will fail to learn again.
All you need to know. American-made Toyota Corolla costs between $21,000 and $26,000.
The problem with tariffs is that WE pay that cost not the foreign manufacturer unless they also own the local dealership.
@@darkstormincAnd if somehow it was the "evil" foreign company paying the tariff, all they'd do is stop selling it here and US customers lose. This is not an issue of China doing anything wrong, it's 100+ year old US car companies not being able to compete anymore and having massive bloated costs due to union workers. The UAW already bankrupted the US auto industry in 2008, they're working on bankrupting it again.
@@Totenglocke42did you actually watch the video? You know, that part about what Chinese companies do to compete and how they treat their workers?
@@sprockketsthats just some propaganda bs
They wont make cheap cars because people are paying these over priced prices. The market dictates prices
0:26 - "Automakers have resisted making cheaper ones"
Correction: They are still making the cheaper ones, they are just charging customers more for them.
I love how they downplay chinese cars/EVs.....I think they forgot that American cars are seen as unreliable, that's why brands like Toyota and Honda are so strong in the US
And Honda's reliability has cratered as of late as well.
Just like the 1970s again.
Lol all cars are the same, I lived in England their precious land rovers are junk. VW has been caught many times in their lies. Toyota has major problems with their new vehicles ever since the new ceo took over. Lol what garbage propaganda that cars are magically better over seas
Every American car isn't a stellantis product first off
@Mayamax3 yeah my 2018 Honda Fit was the worst car I ever had. Water leaks, bad interior quality, and several engine issues.
Never will buy a Honda again.
I recall some years ago watching an interview with a Ford exec who stated "we sell our cars for what we think we can get for them" .
Right, yet the net profit is 3%
Damn we discovered capitalism, every company with shareholders does this.
Yeah this checks out they originally sold the maverick for 20k flat and the demand was so high they raised prices and now it’s a 27k vehicle and there’s still plenty of demand
My first car was a Ford, biggest mistake ever. Turned out to be a lemon.
As long as there are idiots that are willing to pay the price
Its the same reason developers are only building luxury apartment complexes. Money.
They can make good inexpensive cars. They choose not to.
I'll probably never buy a new car again.
Nobody bought them. Simple. The trax is an example of a car people are actually buying as it’s a top 15 best selling car year to date. Can’t say the same for the other cheap cars that automakers made like the fit, versa note, focus, Cruze, sonic, etc. People complain about cars getting big, so why aren’t the best sellers changing? Like if a civic and Corolla are as big as a Camry was 20 years ago, why hasn’t the Corolla taken the Camrys place as the best selling sedan in America? Why hasn’t the Ranger taken the F150s place as the best selling truck? Like that’s the other thing that has to change to show people want cheap cars. Start buying the cheaper option and not more than what you need. Don’t just complain when it’s not there.
The big 3 can't compete with Korean and Japanese auto makers. Exactly why they don't make cars with the exception to the mustang
Sadly, models like the Accent, Mirage, Yaris, Fiesta, Trax, and Jazz/Fit have all been discontinued.
I have a 96 ranger 324 000 miles. Still a weekly work truck. 13 grand brand new off the showroom floor. 4cyl 5spd manual ac but no radio
Because people buy these bloated, big, over accessorised vehicles to suppress their insecurities.
Exactly.
CNBC does not tell the truth about China,
1. China did subsidize all EV cars Made in China, including Tesla in Shanghai.
2. China does not subsidized gas cars, but gas cars in China are also cheaper than US. For instance, the cheapest Toyota Camery 2024 in China is 126,800RMB（or $17,532）in July 2024.
En lugar de explicar porque los coches americanos son tan caros intentan difundir mentiras dice china con las que explicar porque los coches chinos son tan baratos
Hablan de trabajo forzado como si un coche fuese un edificio y no se necesitan ingenieros en lugar de personal no cualificado
Si no se estudian las cartas de los bm problemas es imposible solucionarlos
Aunque los coches chinos sean más caros eso sería sin explicar los precios de EEUU
Pero cnbc solo está para hacer lobby
I'm my opinion, that's the benefit of competition. The price of big companies gas cars dropped dramatically. Before, most cars price matched the west. Now, new Chinese companies ev, hybrid, phev make cars cheaper and better in certain aspects. Big companies cars won't sell, therefore they have to drop price. When was the last time NA region had a real competitor to other companies with new technology?
@@magnopranckestradaJusto pense en eso, cuando dicen que las baterías pasan por una cadena que incluye trabajo forzado, yo les preguntaría cuantas empresas estadounidenses no usan baterías de litio que están relacionadas con trabajo forzado? Apple…
CNBC is not taken seriously, it's like a wing of the Democrat party.
United States Government also subsidizes USA EVs through tax credits and grants.
I only buy old cars. never new. I can easily afford a $100,000 car. I just chose not to buy one. My first car after high school in 1990 was a 1985 Volvo 780 coupe. I drove that car till 2006. I then bought a Volvo V70 without the turbo. I still drive that car. and its never seen a mechanic other than my own limited skills. I bought my wife a 2004 V70 in 2011 for $2,600, she still drives it, and it also has not needed any major work on it. Old cars are just reliable and cheap as long as you take care of them. $50,000 for a car is insane. There is no tech in a car that to me justifies that price. I have 2 cars with over 200,000 miles on them and they still drive like new. I have friends who have 2-year-old cars who can't say the same about their 50- and 60-thousand-dollar cars. NOT ONE OF THESE CARS TODAY ARE WORTH THE STICKER PRICE.
I tend to agree, but sometimes you have to know when to let go. I had a 2005 ford taurus. It's a decent car about about 9 months ago, the transmission died; more specifically the torque converter. I was extremely lucky that my dad is a mechanic and helped me fix it. He doesn't work on transmissions, but he knows enough to know what was damaged and how to replace it. I spent over $400 and many hours removing the engine and transmission. If I had taken it to a shop, that job likely would have cost far more than what the car is worth.
They’re so expensive because we’re stupid enough to pay it!!
So what's the reason for the high costs of Chrysler/Jeep? Dealers are complaining they can't sell enough and the average number of days their cars sit on their lots is around 250.
That doesn’t make any sense. The people paying it can afford it, the people complaining about the prices can’t. It’s simple. Americans make affordable cars as well. This right wing propagandist crap is tired.
Also fault of consumers who enable them by still buying these overpriced cars
Exactly. Our collective buying power should regulate the price. They go high….we quit buying.
You can’t blame the consumer. I say blame the government for neglecting to develop a better transportation infrastructure in America. The government literally designed our city grids/roads to make us heavily rely on driving cars instead of you know using trains/public buses/subways.
We have no public transport here. We also banned chinese cars and implemented tariffs and heavy regulation. What do u think was going to happen?
I think it's also "the fault" of better quality vehicles than we used to get. A car will run fine for decades now, and not just if you barely drive it or pamper it, they just keep going. This means people aren't desperate for a new car, they are fine driving the ones they have, and if they need something new, they can get a used car for a fraction of the cost of a new one, that will still last for a decade or more.
A few car companies versus millions of consumers. Of course the consumers are the problem 🙄
Easy.
-Eliminate Overpaid top execs destroying the company.
-Allow customers to buy straight from manufacture. Eliminate mandatory dealership aka stealership.
Have you ever validated that approach, or that's just what your politician influencer told you?
Sounds like a great start. I'd do some followup by cutting the MPG requirements, emissions requirements, and safety requirements. Let the consumer decide how safe or how green they want their vehicle to be.
You forgot eliminate government regulation
C, kick out the UAW. They shouldn't be able to take a cut like some mafia boss.
@@serge8085tesla is the best example of buying direct.
They made the country dependent on cars, so now they can increase the price
Why do I feel like CNBC has made this video 5 other times
Its propaganda
Different titles but same topic over same video.
Because Americans have the attention span of an insecure teenager.
Things change so they milk the topic again
Because Americans have the attention span of a insecure teenager.
I paid $25,000 for a brand new 2017 Mustang, in 2017, still driving it into the ground. Next car I’m finding whatever is brand new for $25k and driving it into the ground too. These corporations have lost their minds.
Even a Chinese Car?
Probably a Volkswagen Jetta or something along the lines of that
Its dumb to keep buying a new car, just buy one a year or two years oldsr and you basically skip the depreciaton hit when its new.
Is that the one with a German engine?
basically a cheap mustang. course a $25,000 mustang from 2017, probably is over $30,000 today. a $25,000 vehicle is challenge today, wont be easier later either
I must be the weird type. I never like big cars / SUVs.
My $16,000 Honda Fit is still going with 237,000 miles on it
Honda or Toyota for me as well
I bought a 2009 Honda Fit new and paid $17, 074 with a cashier's check. It has covered 193K miles with very little in the way of repairs and (knocking on wood) still fires right up each and every time.
I hope to cover 300K 'cause I really like the car.
Those go Karts are not great for Canadian winters.
Honda discontinued the Fit about four years ago, at least in the US. Pity.
People have children not everybody is single different strokes for different folks
Only 1 reason for those high prices---CORPORATE GREED !!!!!!
1. Greeedy dealers and manufacturers
2. Dumb people who buys them
3. Government allow this
4. Banks for lending money
5. Stimulus
I would remove number 1, because it's a given. But everything else is right.
@@jackspencer8290people act like greed is a new thing. Greed is constant and everything else changes. Well dumb customers are also a constant.
well, most on the list are business. and businesses are in business to make money. OEMs make more from the higher MSRP vehicles than the cheap one, and dealer who set the FINAL price make more money from higher priced vehicles too. even during COVID/Supply chain crash, there people who have to have a vehicle to get to work (public transit isnt a thing almost everywhere in the US). well government in the US is driven more by corporations than its citizens, so not they wont step in to this. now banks why they would fund a loan for more than the asset (vehicle) is worth brand new. stimulus wasnt all that big for individuals, but it seems some businesses used it to stay afloat, or come back from the dead
Storing vehicles ain’t free
I would remove #5 bc that was years ago. There's no stimulus now
If you think they're expensive now, wait till the Tariffs are in place and most of the the supply chain is in the US itself. Americans cars are all overpriced, while having inferior quality, anyway and this will 10x the problem.
The more expensive the car, the more it can increase the GDP of US.
Therefore, I hope that the price of cars will continue to increase.
@@amandagrant4331 Expensive doesnt mean quality. Especially looking at any American car. For example among EVs Teslas have the worst finishing and after service. BYD for example beats them in every department. Thats why Elon actually supported trump cuz he'll sink without the tariffs. Also the more expensive it gets, the more the market shrinks. When thinking quality and refinement somehow a ford or a GM is not what comes to mind, maybe its just me.
Ps: Rather than expensive, i should have used overpriced in my original comment.
Trump and the GOP hold firm to the idea that no human suffering can ever be excessive in the service of profit.
The US DOES make cheap cars, but they are expensive. There's a difference between "cheap" and "inexpensive". "Cheap" is a measure of quality. "Expense" is a measure of cost. It's the cheap man that spends the most money, because he has to soon replace the junk.
Unions? Resistant to automation and over reliant on manual labor? High wages? Outsourcing supply chain? Mandatory dealerships? Over spending on advertisements? Overly increasing wages to top management? Decisions... Decisions...
I had to go pretty far into the comments to find one that doesn’t just say that it’s because American companies just want to make more money.
Did any of these people watch the video? 5% of the total cost goes to profit. 70% goes to making the vehicle. So…
Complain all you want but the fact is Americans have continued to buy these vehicles. There is no incentive for the carmakers to change until they start losing massive amounts of money.
it's coming look at their inventories way up not selling well
America used to have small car makers to increase competition and stabilize prices, but like so many of our industries, government over regulation makes that impossible in modern times. Americans are left with whatever big business tells them they can have at whatever price they are forced to pay.
Here's a thought, make a good frame, good drivetrain, easy to repair, get rid of the touch screens, get rid of a lot of the features. You could radically reduce the number of parts necessary to create a vehicle if the goal was to make efficient, good for performance, ease of repair and long life span. Cars are far more complicated today than they need to be
Why would they do that? How does that benefit them?
I completely agree. I personally want to purchase and drive a vehicle, not a damn computer.
迂腐，那你为什么要用智能手机？
Get a used civic. 10k cost, last 100-150k more miles get 30 miles to the gallon.
@@硕耀梁 Smartphones are not cars. Cars are not smartphones. They serve completely different purposes. Asking this question is akin to "Why doesn't a plumber use a violin?"
Greed. We needed a whole segment to state the obvious.
Greedy workers.
@@DaveAnderson-ic6oo Lol. Imagine being corporate bootlicker.
Shhhhhhhhhhhhhh 😅
@@DaveAnderson-ic6ooCEOs
@@DaveAnderson-ic6oo no
Years ago I moved away from new cars. I write one check and thats it. If you have to borrow money then you cant afford it. 10 years ago I purchased a low mile great condition car for 3000. I drove that for 9 years. Two sets of tires, three batteries and some other maintence with total cost about 6k. Thats $55 per month over the years. I then saved money and bought a low mile 2016 car for 16,500 cash. I make good money and debt free except mortgage. Remember a car is a metal box that sits in your driveway 95% of the time. Stop caring about them and use your money for different things amd bettee investments.
I purchased a China suv in Costa Rica last month.
Prior to buying it, we test drove a dozen vehicles. All of the Chinese vehicles offered a ton of safety features for a fraction of the other brands.
At the end of the day the Chinese vehicles smoked all the other brands with a way longer warranty.
For example ford is 3yo 36,000 miles, Toyota was 2yo 20,000 klm, while the Chinese were 5-10yo with 200,000 klms
The dash screen is 15.6” with voice commands for just about everything from turning on the AC to rolling down the windows.
We bought the Jetour T2
That's weird. Toyota here has standard 10 year warranty on all their cars.
Wow, that thing looks exactly like a Land Rover Defender! I'd say the price difference is BIG
@@Robbedemnot in Costa Rica,
@@jessepoweryeah it’s price in China is $22k in Costa Rica $57 out the door. It’s packed with so many safety features
@@jamesharvey8838 awesome, worth the money so!
Short term gains are what is killing this country. Something very wrong when a Jeep has to retail for $90k because it cost $63k to build it. The production costs are out of control.
Wonder how much was labor?
Years ago it was $45/hr but robots have taken a lot of assembly work. The problem is the pension owed to legacy employees even if robots took over current positions the automakers millions and millions of current and future pension debt.
@@hkraytai BS. Toyota, Honda, Nissan etc. don't have legacy pension costs and their comparable vehicles to the Big 3 are not any cheaper.
@@knothead5 Labor is less than 10 percent. There's a lot of things that have driven up the cost of vehicles. The price of raw steel is a big one. Plus all the new technologies in a lot of them that are mentioned in the video. As well as increased government mandated safety and emissions standards that get stricter and stricter as well as more expensive as the years go by.
@@hkraytai I worked with a guy who was a UAW member. He said under a contract where he worked in the past, if a UAW member was on permanent layoff and took a job at, say, $10 an hour, the auto company had to make up the difference for the union scale.
I bought my very last 2 used vehicles in cash and will never need another one.
Be careful. I had the only car I've even owned totalled by a texting teen girl who blasted through a red light, back in April.
@LS-uv9gg I hear you. One of my two was a replacement when a 16 year old pulled out of a side street, and we T-boned him at 50 mph. Fingers crossed, this is the last 2. We only drive 10k miles a year total, and our vehicles have 6k and 22k miles each.
@@fleabag2mr.151 Are both vehicles for you or do you have someone else you purchased the second one for?
@user-gz4ve8mw9l wife and I mainly drive one but have the second if we need to go to 2 different places.
Manufacturers want that computer in the vehicles so that once your coverage is over, that car breaks down.
They don’t need computer in your car for that. It is already achieved through materials science.
nah, it breaks down sooner than that so you can become buddy buddy with your service advisor
Wrong. Computer is to track and report your movements. As Zsar said, material sciences achieved that in the 80s-90s.
Ever wonder how once that warranty ends the major part seems to just begin to go? Yet, if you put extended warranty it runs fine
Software will be used to push subscriptions on car "owners". I heard BMW charges a subscription fee for heated seats (no joking).
I remember 30 years ago people telling me “buy American car , they are cheaper” 😂😂😂
As someone who's family has enjoyed *nothing but* foreign made cars, such as Honda, all their life: Your friends have *been* wrong for 30+ years. Foreign cars are the best cars. PERIOD. I loved our Honda CRVs, Hyundai Elantras, Accords and Civics throughout the years! Nothing beats foreign. Everyone knows that. Even Americans. Your friends need to do more research!
@ I have had only “American cars” for resale or flipping, I wouldn’t expend my money on two American things: cars or beers, I just buy Honda or Toyota nothing else, there was a time when my family owned an Acura RDX, Acura TSX, Honda Accord and Honda Civic, now i personally own a Camry 😉
@@Vandicoupi mean maybe if you only drive commuter cars and have 0 interest in cars at all this is the case..
Every time I see layoffs and the CEO getting compensated it makes me crazy, 1000 workers and CEO gets 50 million raise, that's the salary for all the workers for one year
Perhaps the CEO's salary is tied to profit and layoffs increase profits.
Anyone can bolt lug nuts on all day. Very few people have the skills to manage an international company with hundreds of thousands of workers. When you find someone with those skills, you pay them well to keep them from leaving.
@@bwofficial1776 US wealth inequality reached proposterous levels. Over 40 years the bottom 90% got 26% more income, the top 1% got 150% extra and the top 0.1% paid themselves 345% extra. If you believe the elites are actually worth all that extra money on top of the very high income they already had, I have a bridge or two to sell you.
If you want the truth definitely dont watch this video.
I miss the simplicity and manual transmission of my ‘91 Honda Civic. It never got less than 40 mpg and was almost indestructible.
I imported my 800cc Daewoo Matiz - I get 51 MPG and can go on the highway with it (with the AC on, at least down hills :P) You'll never see me in anything over 10k, and that'll be paid out up front.
Honda Civic
Toyota Corolla
There, they are cheap, cheap maintenance and also really reliable. Stop buying CUVs, trucks and SUVs. Americans are at fault for supporting GM and Ford after they stopped making cars.
Base new Corolla LE goes for 30k out the door here including dealer markup, taxes, delivery fee etc. and this is the cheapest base trim, so not as cheap as you think!
@@johnkonde1975 30k is way cheaper than 50K...Math is hard!
@@stevebell4906 Cheaper. Not at all a cheap car at 30K and not always reliable as friends have found out.
@@johnkonde1975 Cheaper than a $70K fuel guzzling pickup.
This is hilarious. So let’s forget Toyota sells the Sequoia a rebadged Tundra for $80,000. Let’s ignore the fact Nissan will happily sell you a $70,000 Armanda Platinum as they desperately try to compete with Americans in full size SUVs and trucks. Chevrolet also builds a $23k Trax. Y’all are selective in your opinions and clearly disingenuous.
Spend your money wisely-invest in quality where it counts, for it often outlasts the cost of cheapness. Yet, remember that sometimes the simplest, least expensive option is the real gem in disguise.
Great advice and I live by it as well. I have wasted too much money and time on cheap garbage
I hope we all know that it doesn't matter who is in the 'top job' because this is a systemic problem -- greed. We have allowed many of our economic sectors, to take advantage of the American people. It's disgusting and frightening for the future of our country. My wife and I will be retiring in the next two years n another country.
We are absolutely worried that SSI will no longer be funded. we'll have to rely on his pension, a 403 (b) and a very prolific Investment account with my Stephanie Janis Stiefel my FA. Our national debt is bloating and expanding every month. Our government needs to get spending under control and cut the federal budget.
@@OsamahMocoWhat country you moving too?!'m headed to Thailand or the Philippines in 4 years.
Exactly well said.. spread the wisdom
@@OsamahMocoI would really love to know how much work you did to put in to get this stage
because they think you are dumb enough to pay it
In China, Camry, Accord only needs $25,000, and Corolla only needs $15,000. Hahahahahahaha, Americans refuse to compete.
That's because that's all those people can afford, so they adjust the price, accordingly!
@@rongendron8705Because there's competition :>
Turns out China is more capitalist than America. There's actual competition over there.
@@rongendron8705🤣🤣🤣🤣🤣🤣🤣🤣🤣
@@rongendron8705 So American pay more just because Americans are rich? What kind of art of deal is this?😅 I don't think Donald Trump would like to hear that. He would be outraged!
If you can’t pay cash for a new car, then pay cash for a used one. Never take out a loan
Unless ur a government employee with assured monthly salary
@@gobimurugesan2411 You mean assured job security? Because that's what's most important. Still having that job to begin with. And nearly all government employees naturally get to keep those jobs for life + pension.
@@Vandicoup exactly
Problem is every American wants to be seen in a new flashy car to show it off. There is still great used Toyota, Hondas, for 13-15k that will outlast any of this new junk. No one is forcing people into a new car every 2-3 years
C'mon, not every American cares to be seen in a flashy new car. Just from the majority of comments on this video and those on other car related videos, most just want an affordable reliable car to get from A to B.
@@theotheleo6830 Yes, although I wouldn't mind a heated steering wheel considering I work in the trades.
Where
Can't, or won't.
My friend lives in China and he told me that he bought an EV BYD for less than $25000 with plenty of tech and so far he said very reliable. I am still driving my 15 year old Honda and won't get a new car due to high prices.
You are smarter. You live in US.
Yeah and their dollar value lower than America
@@lawrenceralph7481 A failing country lol. America's best days are behind it no matter who's in office. This country is falling apart and can't get it together while China's leadership knows what it's doing.
@@lawrenceralph7481 lol, Elon Musk's mother is now in China, go convince her she's stupider than you
i doubt that's the case. three of my Chinese friends told me the EV craze there is just media hype, many young people ditched EV to buy Petrol cars in few months because those cheap EVs had plenty of cost cutting in all the wrong areas.
Nothing like the CEOs making 7 or 8 digit incomes deciding what's affordable for the rest of the world.
And nothing like a UAW worker making triple what every other factory worker makes.
@@domjohnson2579 Everything should be unionized and everyone should make triple their current wages for the working class.
@@user-gz4ve8mw9l So we tried all that and AMERICA has NEVER been poorer. Doubling down on stupid policies isn't the way to fix anything Kamala!
@@domjohnson2579 What do unions have to do with politics or policies of corrupt administrations behold to corporations and the rich? Besides Kamala works for the corporations as do all politicians, all corrupt criminals. Workers who see the benefits of unions have every right to unionize for better wages and benefits.
@@user-gz4ve8mw9l So you want prices to go up 300% then???
Because we deny competition from around the world (especially EVs) and tariffs on cars not made in America
It’s just about keeping cheaper competition out to keep prices higher
On the topic of EVs most of those Chinese EVs don't meet American regulatory standards. You'd have to cut regulations or those vehicles still wouldn't be sold even without the tariffs.
@@Ziegfried82 If Chinese EVs can't pass US regulations without major modifications then why bother tariffs? The existing regulations would have kept Chinese cars out without tariffs. The fact is that without tariffs, the Chinese can easily modify their vehicles to pass US regulations and sell cheap EVs in the US. You just assume that Chinese regulations are much laxer than US regulations without even looking into the facts. One more thing, Chinese EVs are sold in many countries in Europe, and you can look into their crash test results to see how they are rated in Europe.
No EV for me......ever!
Ending SUV loophole for emissions would do a lot
Who would of thought that putting all of your eggs on big expensive pick up trucks would not be sustainable. It’s not that America can’t built cheap cars, it’s that it’s not that profitable. They would rather tariff and banned all other affordable competitors and have you forever in debt than allow you to own a cheap car. If there’s any good news it’s that EVs are rapidly falling in price so there may be a way out for Americans.
Make TOYOTA Tundra Great Again 😎 Scotty Kilmer
*There is no such phrase as "would of" in the English language. Your family, friends and teachers, have all failed you.*
The lowest you'll ever find an ev is likely 35k+, in 2019 I got a 40+mpg vw for 19k, EV will not get that low.
@ramoraid Not true, you can get brand new Nissan Leaf for around the price tag of 28k. You do realize Tesla aren’t the only ones that make electric cars right? Also these are current price tag but every statistic indicates electric cars to get more and more cheaper in the coming years as productions increases and batteries and other components gets cheaper.
Well I suppose if everyone has to sit around and wait for their vehicle to charge at least it will end hustle culture. Of course many of us prefer a bit more freedom and self sufficiency.
What is also annoying is that they renew models every year. I would be happy to buy my Corolla 2009 made in 2024.
well check Nissan, other than a few vehicles, they havent refreshed many of their vehicles. and they are just about to crash. but then model refreshes in the US is something that started in the 1920s.
That’s a great year model Corolla. I had a 2010 same car. Great gas mileage, great safety in crash tests, and overall everything you could want.
But the ones 2 to 6 years before it were trash.
Easy Google search.
Same for the Camry.
You and just a handful of people would be the only ones. I've seen too many people post comments that they trade their cars in after just 2 or 3 years because they want the latest and greatest.
@@theotheleo6830 This love for "latest and greatest" is changed by the credit score going below 700 :)
Just import Chinese ones. And demand them to take care of the workers here.
I'm currently in negotiations with a Subaru dealership to buy a 2024 Impreza base model for $21,500, plus tax and that includes destination..and they're willing to pay 110% of the KBB blue book value or the CarMax offer, whichever one is greater. They're trying to clear out the '24 models with the '25 models coming in soon. It has a decent sized cargo area, is plenty roomy for 4 adults and has a very comfortable suspension. Subaru is offering 2.9% APR for 48 months this month on the Impreza's.
There is no reason to drop $50,000+ on a brand new vehicle, if the monthly payments are more than 10% of your total income. There are reasonably priced cars and most manufacturers usually have special in-house financing if you do your research.
I bought my 2013 in December of 2012, and it's been great. I'm still under 40,000 miles, so I don't expect to get another car for a long time.
@@stephenriggs8177 Oh wow, yeah if it only has 40,000 miles, there is no reason to get another car unless you just really want something new with the latest and greatest in technology and automotive advancements (no judgement there, we all like new and nice things). For me, I plan on doing about 25,000 miles per year, so I'll probably keep it until at least 100k/4 years and then consider whether or not the suspension parts are starting to go out and will need a full rebuild, and what those costs are.
I got a similar deal with 23 impreza sedan. I paid that car off real quick 😂.
I have a 2018 Honda Accord. Bought it in 2018 at the time driving over 150 miles a couple times a week. Went full remote in 2020. Only has about 42,000 miles on it. Plan on keeping it as long as it will run. I don't have a car payment.
It’s also one of the safest cars on the road.
#1 greed, #2 emissions driving the prices up, #3 people want there vehicles to be smart phones, #4 people continue to pay these prices, keeping the costs high.
Uh .. wrong on #2, unless you buy something like a 760HP Ford Mustang Shelby GT 500, which has a gas guzzler tax. The video talked about the reason why, I think in the second of the four segments. The Big-3 make more profits per vehicle on trucks and SUVs. So, they stopped making sedans.
its mostly just greed and trade war both dems and trump is to blame for with tariffs
Well one out of four being correct isn't that great
Meanwhile in Australia just last month another 7 electric car companies started selling here. The Chinese and Korean electric cars are way better quality than Tesla's and are way cheaper without ridiculous tariffs
Yep, and better built (as well as far more technically advanced) than the crude unreliable trucks we still get from the US. Face it, like Musk the Chinese saw there was a really lazy and stagnant world car industry that was absolutely ripe for disruption but they saw they were in a far better position than any US company to do that disruption.
The Teslas sold in Australia are from China. Are BYD and SAIC hand picking the best workers? I know the Shark is a pretty good truck for BYD's offering but it's made in the same country as the M3. Kia/Hyundai are all made in South Korea.
Australia doesn't have an auto industry anymore. Of course they're fine for Chinese or Indian cars around.
Electric cars are a scam. Pathetic that people are too ignorant to have rejected it from the start...
This comment will age well after 5-10 years. Chinese electric cars or any cars are junk and resale.
The future of transportation isn't cars anyways. It's electric mass transit and bicycles. That's not to say people in rural areas won't drive cars still, they of course will. But it makes little sense for most people in cities or suburbs to drive a car every day. The reason they do now is due to a lack of public transportation infrastructure and poor development pattern designs which make it less safe to walk or bike despite it having the potential to be more convenient. Any public policy which goes towards subsidizing cars or gas or more roads is a policy failure. We've done that for 80 years and it has caused a traffic and environmental nightmare and made our cities treacherous, miserable places.
They make cars that are unnecessarily expensive, complicated and hard to repair just to make high profits. Every car manufacturer should listen to the consumers and start making cars that the average person want. VW did this many years ago and the car was called VW Beetle. Simple, durable, inexpensive and easy to maintain and repair.
Chinese competition and EVs are saving the consumer once again.
Forget about cheap cars we need reliable cars that dont break down
Just get a Japanese brand
no such thing everything breaks
@user-mf9gs unfortunately that is no longer a guarantee.
@@user-mf9gs Get a Japanese brand but without a turbo, CVT, cylinder deactivation, etc. Don't get a Nissan, though.
Americans demand big trucks and SUVs that are loaded with all the bells and whistles, which is totally unnecessary for the average person. We are the reason vehicles are so expensive. Go back to smaller sized cars that more basic and the price will be significantly less.
I've been driving a truck for 30 years. Trucks never needed bells and whistles, but they are impossible to get without them anymore. Unfortunately for those of us who would still like to be driving a 30 year old vehicle, planned obsolescence has also been part of the carmakers' racket.
Nah, us car companies decided they'd only make light trucks because emissions regulation has a carve out for light trucks.
This, they've put all their advertising into small trucks, which is pickups and SUVs and the like.
It’s illegal to build small trucks in America now.
I remember when the Toyota Aygo was introduced in Germany in 2005 it's price was 10,000€. I drove this car for over 10 years and I was very satisfied.😊
I will never buy another American car as long as I live. Bought a Ford brand new off the lot in 2016 and within the course of 87k miles it has had 3 blown engines and a blown transmission. Worst investment I have ever made.
Maybe you should research your car before you buy it 😂
@ The attitude in your reply is the reason why we are never gonna get good products. Stop making excuses that let these companies off the hook. although I did my research please inform me what research would tell me that my regularly dealership serviced vehicle would get a catastrophic failure in the engine at 60k miles? Again after an engine replacement at 70k miles and again at 85k miles (all under warranty)? Let’s use common sense. Or was it more likely poor craftsmanship that was not designed in the interests of the buyer?
@@j.z.5678If you buy bad cars their gonna keep selling bad cars. Definitely has nothing to with me.If you bought Japanese wouldn’t have that problem
car is not an investment. At least nowadays.
@@waterloo123100 Which is exactly why I buy Japanese now. I learned the hard way. I’m putting my money where my mouth is and said never again.