By dennismary.slave@gmail.com 
Cars once promised independence and transportation for all Americans. Now, they are a luxury product that cost about $50,000, nearly 30% higher than just a few years ago. Affordable vehicles, especially those below the price of $20,000, have nearly disappeared. And while Automakers pulled in record profits in 2023, slim margins combined with deep investments into EV batteries, software and other technology is making it hard to produce cars much cheaper. Chinese automakers can, but they’re impeded by tariffs and rules. Insiders say that is just a bandage – automakers need to compete.
Chapters:
00:56 Title card – Why American automakers can’t make cheap cars
1:05 Chapter 1 – Affordability
3:02 Chapter 2 – How cars got so expensive
6:07 Chapter 3 – Making a cheaper car
9:08 Chapter 4 – Competing with China
Producer: Robert Ferris
Editor: Evan Lee Miller
Animation: Jason Reginato, Christina Locopo
Additional Camera: Natalie Rice
Senior Managing Producer: Tala Hadavi
Additional footage: Cadillac, Chevrolet, Ford, Getty Images, GMC, Hyundai, Rivian Stellantis, Tesla, Toyota
» Subscribe to CNBC:
» Subscribe to CNBC TV:
About CNBC: From ‘Wall Street’ to ‘Main Street’ to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.
Want to earn more money at work? Take CNBC’s new online course How to Negotiate a Higher Salary. Expert instructors will teach you the skills you need to get a bigger paycheck, including how to prepare and build your confidence, what to do and say, and how to craft a counteroffer. Register now and use coupon code EARLYBIRD for an introductory discount of 50% off through Nov. 26, 2024:
Connect with CNBC News Online
Get the latest news:
Follow CNBC on LinkedIn:
Follow CNBC News on Instagram:
Follow CNBC News on Facebook:
Follow CNBC on Threads:
Follow CNBC News on X:
Follow CNBC on WhatsApp:
#CNBC
Why American Cars Are So Expensive
source
Then you fools voted Trump in and you all are paying more for everything because of Tariffs and deporting your cheep labour. Maybe the USA should look at your consumerism addiction. The United States had $58,228 in disposable income per capita in 2022 the most of any nation. Of the top 10 countries, Canada had the smallest per capita disposable income at $34,305 and they don't winge half as much as the USA fools.
Remove all unnecessary gadgets
GREED
China has amazing cars for 30K. We can't have them, though. American capitalists distort the market by buying our government.
Unions !
Cars are more expensive in the US than in Australia… Crazy.
Us automates are behind in Tech. Plus, they labour costs are just high.
Cheap cars make small profit, that's why
Why? Because they want more more profits
For the crap they make way to expensive
Wait the tariffs, price will raise…
Maybe, all these brand automakers have money to buy technology to decrease prices if they do not have it. But they do not want to. This is not good for its monopoly and they would earn less.
I thought the question was how come US manufacturers can't build cars…
Cnbc garbage
We will make cars in America with no tariffs, buy American made cars. Just not right now.
Because big business is conspiring to make customers their slaves.
Remove computers and sensors and give us a basic car. I bet you will sell thousands without all that technical crap!
It's the demand for comfort and convenience that drives tge price up along with all the R&D to pass emissions and fuel saving, etc. Demand drives price.
The cost of raw materials and wages are through the roof. That's why!
How about letting people buy from the car companies themselves instead of dealing with dealerships. It's an unnecessary middleman. Get rid of the rule that dealerships can only sell cars that would cut cost a decent amount.
But American cars used to be remarkably cheap compared to prices in Europe and not all were terrible. What's happened?
A 3 y.o. Tesla looks like a 10 y.o. VW …
Americans don’t buy cheap cars. Honda didn’t bring the new generation of Fit to the US because Americans didn’t buy the Fit.
why 8% intrest?
Stop lying to Americans!!!! US has high cost economy, corrupted US government officials wether federal or states' officials, profit oriented economy
Adjust the question to:
Why can't automakers in union countries make cheap cars?
Let’s start with : Why US car makers dont make good cars “?
US cars craps. 😂😂😂
Porque no los hacen? por un maldita estupidez que dijo una vez Henry Ford: "carros pequeños, ganancias pequeñas" por esa pendejada.
So in other words they need to make a high costly vehicle that only the rich can afford to pay for the large CEO/CFO pay instead making a basic safe affordable vehicle for the masses. Is this NOT the opposite of Henry Fords vision. Some guys just need an affordable work truck. Some mothers just need a car to transport the kids. Cars & trucks are 2 and 3 mortgage's now. only for the CEO's to get the money and they are not making what the average population wants.
It's called U.A.W.
Canada needs to partner with some of these Chinese companies , and start producing EV’s here to compete with the American auto business. This current trade war is a perfect opportunity to explore this possibility.
Don't forget government regulations. Safety & emission eqpt. does have a cost, as much as adding luxury accessories adds costs with more complex to build & maitain vehicles.
Let's go Canadians! Boycott all USA products and vacations! If the big 3 car manufacturers move out of Canada then pressure our government to expropriate their factories and give them to European car manufacturers! Pressure our government to cancel the F35s and weapons contracts with the USA and we will buy from Europe. Canada needs to start building the west/east coastline an ddivert oil from going to USA and ship the oil to Europe and China! Canada needs to minimalize trade with the USA and start shipping our critical exports like steel, aluminum, oil and uranium to European countries. We need to take the 100% tariffs off the Chinese EVs and put it on Teslas! Let the MAGA members buy the Teslas.Let's go Canada!
one word GREED ..
And the way Trump is going now with Tariff war wanting to bring back all manufacturing of US Car companies. Hold on tight it's going to be an expensive bumpy ride.
What he wants to do simply just means everything will be more expensive. Bringing back manufacturing of all US goods to very high salary costs of employees building them and a lacking energy infrastructure supporting all that manufacturing. It's going to be costly.
Its all about muscle….big size…andl ⛽ guzzler
Trailer park capitalism 😅
Elon 55.8 billion, Wang Chuanfu 5.3 million Yuan ( 737,262 USD ) Lower US costs would just be more for the top end and the share holders not cheaper cars.
Henry Ford must be turning in his grave.