M44LCY
Established Member
- Joined
- Mar 18, 2024
- Messages
- 105
- Reaction score
- 132
- Points
- 38
- Age
- 69
- Location
- Fife, Scotland
- Driving
- MG5 Trophy LR
Nothing to do with the new Labour government. The basic problem is that industrialised nations decided to buy from cheaper countries rather than make our own. It started with inconsequential consumer goods and gradually spread to high ticket items. Companies could buy dirt cheap, sell at prices well below the norm but still multiply their margins. Thus we all voluntarily "offshored" our home production. The car industry is only the latest example of this.
As a retired lecturer in Computer Science, we witnessed a massive surge in students from China. We discussed how so many Chinese families could afford to send their children to the UK. We considered the likelihood that we were educating them to a standard that they could go home and start educating others … and that we were helping to build skill sets that could mean we were equipping them to undermine our own tech sector. But all is fair in love, war and global trade.
Now, China et al are the workshops of the world, and it is largely down to the usual short termist attitudes of the West. We really do only have ourselves to blame. As Sandy Munro explained recently - VW, Mercedes, JLR, etc all offshored production to China because it was cheaper. What happened? We showed them how to do it, they improved the processes. And, as he said, they're not just building good cars, they’re the BEST.
Are Chinese cars cheap? No - they're like the early offshoring products. Cheaper than domestically produced, but probably high margin to the Chinese manufacturers. Our own auto industry is long gone. The European makes have to decide whether to go 'all in' on EV production or defer and find it's too late. It can be done - look at the way Renault uses Dacia to peroduce lower cost cars while retaining production in Europe. Or VW's acquisition of Skoda and its transformation into high quality, low production cost, cars.
In the meantime, who can blame consumers like ourselves for opting for good quality, technically capable, cars that we can afford? Nobody else was producing them until recently.