"United States are once again snapping up small cars", Ford CEO: This is the best way to compete with Chinese electric vehicles

Observer.com

2024-08-04 09:03Posted on the official account of Shanghai Observer.com

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01 Due to higher selling prices and high loan interest rates, United States have had to buy smaller cars or look for cheap used cars, leading to the resurgence of small cars.

02 China's electric vehicles are cheap and inexpensive, prompting United States automakers to shift to smaller, more affordable vehicles.

03 Ford CEO Jim · Farley believes that launching a small car is the best way for United States car companies to compete with Chinese electric vehicles.

04 At the same time, small cars sold in the United States are more spacious than ever before, often equipped with standard technology and safety features to meet the high-end taste needs of consumers on a budget.

05 Both Ford and Tesla plan to launch small entry-level electric vehicles priced under $30,000.

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[Text/Observer.com Xiong Chaoran] "United States are starting to snap up small cars again, not because they want to buy them, but because the only cars they can afford are this." ”

On August 3, local time, United States "Axios News Network" pointed out the social status quo of United States, reporting that due to higher selling prices and high loan interest rates, it is more difficult for United States people to buy the new car of their dreams, so they often have to buy a smaller car, or look for a cheap second-hand car. Therefore, the resurgence of small cars is due solely to the fact that these cars are cheap.

The report also pointed out that the high quality and low price of electric vehicles in China have also prompted United States automakers to switch to smaller, more affordable cars. Ford CEO Jim · Farley recently decided that the introduction of small cars by United States automakers is the best way to compete with China's electric vehicles.

"We have to fall back in love with small cars, which is very important for our society and the adoption of electric vehicles." Speaking to The Guardian, Farley said that while everyone loves big cars, including himself, the weight of the vehicles is an important issue. "These huge electric vehicles will never make money: even batteries with low nickel, lithium iron phosphate (LFP) chemistry can cost up to $50,000, and they will never become affordable."

Chevrolet Trax data map

In the United States, sales of smaller cars outperformed other models this year, according to Cox Automotive, an automotive services and data group. While U.S. car sales increased by about 2% in the first half of this year, sales of subcompact crossovers increased by more than 20%. At the same time, compact sedans and SUVs also grew by 18% and 12%, respectively, while sales of full-size pickup trucks fell by 4%.

But smaller cars sold in the United States today are more spacious than ever and often equipped with standard technology and safety features to meet the high-end tastes of consumers on a budget.

"But that's also part of the affordability challenge, with consumers paying an average of $11,000 more for a new car than they did five years ago." Rebecca Lindland, senior director of ·Cars.com Industry Data Watch, was quoted as saying: "If you don't buy a car in five years, the price shock you experience will be real." ”

The best example of this trend is the Chevrolet Trax, which starts at $21,495, the 2024 model of the small SUV that General Motors has redesigned to make it bigger and cheaper, but with more technology than the previous version. Even the basic model comes with standard safety features like automatic emergency braking and lane-keeping assist, while the premium version comes with Apple CarPlay, Wi-Fi hotspot and adaptive cruise control, all of which cost well under $30,000.

As a result, the Chevrolet Trax has gained traction with consumers, with sales of this car increasing by 230% compared to the first half of 2023. Other subcompact SUVs, such as Mazda's CX-30 (starting at $24,995) and Honda's HRV (starting at $25,100), are also selling fast.

Axios News Network pointed out that in recent years, for United States automakers, although the popularity of small SUVs like the Chevrolet TRAX has allowed them to remain competitive in the entry-level market, these car companies have largely abandoned small cars.

But now, both Ford and Tesla are planning to launch small entry-level electric cars that cost less than $30,000. Affordability for United States car buyers is a real issue, prompting people to abandon the cars they really want in favor of those they can afford.

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