"It's inconceivable that Western markets would not allow their domestic manufacturers to produce in China, but simultaneously allow freely those Chinese companies to produce in China and sell," Scaringe said during a recent appearance on the Everything Electric podcast."
"The part that everyone needs to take note of is that these are technically very advanced vehicles and more advanced than a lot, most of, I should say, most of the Western vehicle manufacturers," he said. "I'd say Rivian and Tesla being exceptions to that."
"We've taken lots of cars apart, every car manufacturer does," he said. "There's not something magical when you take it apart that's allowing these really impressive cost structures. There's no secret magic thing that you're like,' Oh, aha, they did this.' But rather it's the compounding benefits of a lower cost of capital."
Chinese automakers hold a built-in cost advantage driven by subsidized development, lower labor costs, and a lower cost of capital that affects components and whole vehicles. Many Chinese electric vehicles are technically advanced and in some respects surpass most Western manufacturers, with Rivian and Tesla noted as exceptions. Western markets have implemented trade measures, including a 100% tariff on Chinese-made EVs, and past tariff threats have been used to encourage domestic production. Protectionism alone is insufficient given global supply chains. Rivian monitors competitor technology closely to ensure its products remain cutting edge despite not selling in China.
Read at Business Insider
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