How many labor hours could it possibly take to assemble a car that costs $5,000 retail? Probably a lot less than a more expensive car, right?
$1000 in tariffs can pay an American factory worker’s total compensation for something like 15-20 hours. But you don’t even have to pay that wage when there’s Mexico.
Find me a top 20 vehicle that’s produced outside of NAFTA: https://www.kbb.com/best-cars/top-10-25-best-selling-cars-tr...
The Suzuki Samurai’s cult following only exists because it was a vehicle that was literally discontinued for slow sales. This example of a winning formula is from an entire brand that left the US market for being too far downmarket.
Cheap city cars struggle to survive and most have exited the US market. Recently discontinued models include the Chevy Spark/Aveo, Mazda2/Toyota iA, Mitsubishi Mirage, Honda Fit, and the list goes on.
The low cost of gas, low vehicle taxes, plentiful infrastructure for larger vehicles, the high profitability of financing, and high median wealth has pushed the US auto market upmarket. Brands who try to sell a utilitarian experience tend to get burned. Brands that sell financing reap the profits.
