this post was submitted on 21 Aug 2024
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[Dormant] Electric Vehicles

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There is a fundamental truth you have to understand about car companies:They do not exist to make cars. They exist to make money. That distinction, analyst Kevin Tynan tells me, is why they’re not really interested in making affordable electric vehicles.

Perhaps that’s an oversimplification. Tynan is the director of research at an auto-dealer-focused investment bank, the Presidio Group, with decades of experience as an analyst at firms like Bloomberg Intelligence. What he means isn’t that automakers have no interest in affordable products. It’s that their interest begins and ends with winning customers who will eventually buy more expensive, higher-margin products.

One of the auto industry’s dirtiest secrets is that at scale, it doesn’t cost that much more to make a bigger, more expensive than a smaller and cheaper one. But they can charge you a lot more for the former, which makes this a game of profit margins and not just profits. In recent years especially, that’s a big part of why your new car choices have skewed so heavily toward bigger crossovers, SUVs and trucks.

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[–] reddig33@lemmy.world 71 points 2 months ago (69 children)

Getting rid of the gas tax and switching to a mileage tax that factors in vehicle weight would help with this. If it costs you more every year to drive a bigger, heavier car, you’re going to want something smaller.

[–] lemmyng@lemmy.ca 9 points 2 months ago (49 children)

The problem with that is that EVs are heavier, meaning that smaller EVs would be taxed at the same level as SUVs or trucks. But it might at least incentivise people to go for smaller ICEs, and switching to mileage tax might be necessary anyway.

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