this post was submitted on 30 Dec 2025
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Electric Vehicles
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How can they walk away from contracts?
You can usually always walk away from contracts. There are penalties, there are courts that are there to enforce them and there are exit clauses. I guess that there are either penalties that are smaller than the losses or the exit clauses that say somethin like "if the law of either countries change so that it makes the deal unprofitable you can cancel the contract".
Sure, but that only means that contracts are not that good in first place.
They have their own purpose and it is to help as work together, not punish when we didn't do anything wrong. If I were a korean manufacturer and the USA clients were making more than haalf of my earnings, I would have made that kind of contract rather than stopping the production in 2023 for example and having my facilities go unused.
Then deals evaporation is accepted risk.