Why most new cars are more expensive but is cheaply made ?
Partly because so much money has to go into compliance with bureaucratic regulations and partly to increase profits.
Greed.
Because manufacturers need to increase their profit margins and shareholder dividend distributions by manufacturing in foreign countries where the labor is cheap, relative to wages paid in the US.
... While at the same trying to stay afloat in a very competitive market.
Absolutely correct.
Compared to what?
And that's really two questions you're asking ...
Why most new cars are more expensive ....
Are they, though?
I mean right now supply shortages are driving prices up of course. But ignoring that ...
Everything gets more expensive with time. Inflation drives down the value of our money.
So after you account for that, are they actually more expensive than 25 years ago? 50 years?
I would love to see the data on that. The answer is probably "not as much as you think"
You're certainly not getting the same kind of product that you were 50 years ago.
Cars have changed from being durable and made to last 20 years or more, to cars that were designed to be low maintenance, meet the average expected ownership of 6-8 years, engineered down to price.
The companies have changed too. These aren't boom-era cars anymore. They have to be extremely efficient and fiscally responsible to survive in today's market.
... but is cheaply made ?
This one's easy: Because people keep buying them.
One can only conclude that people want cheap cars.
This seemingly simple question really reveals the complexity of modern life. But I think we should really be asking the more important questions, like ...
Are cars more commonplace than they used to be? Is it easier for the common man to buy and own a car? Are they more reliable? Have they helped to raise the standard of living of the economic underclass? Have cars become safer?
I think the answer to all these questions is a clear "Yes".
More reliable? I strongly disagree.
On a basic level (engine, chassis etc.)... Yes, more reliable. Ask any mechanic.
I'm not talking about any of that extra equipment.
Also note that I didn't say "durable".
There's also a point to where a car is too reliable as a manufacture. Yeah theres still plenty of 90's corollas & civics out there, but those companies aren't making money off them anymore. I still have a GM 3800 in my driveway, car sits for a week in 20 degree weather and still fires right up, you can have your foot to the floor at the governor on the freeway and it still wont stop. I remember reading on forums for those things years ago that GM discontinued them bc they were too reliable and they weren't making money off them after they left the lot, at first I thought they were joking, but now I dont think it was really a joke. Kinda got off topic but still a valid point. Computers/tech/ absurd amount of sensors are what's driving prices up and decreasing reliability, as well as more complex engine designs for better fuel ratings.
I've got a 3800 too, or in old guy terms, a 231 cu. in. V 6
Not many people remember that engine was derived from the old Buick aluminum V8 of the early 1960s. It's basically that engine with two cylinders removed and the block cast in iron instead of aluminum.
That original V6 was sold to Kaiser in 1967 for use in Jeeps, and AMC acquired the engine with the purchase of Jeep in 1970. Then AMC sold the V6 back to Buick in 1973, preferring their own inline six. (Buick actually wanted AMC to sell them complete engines but the latter didn't want to retool to produce them, so sold everything back to Buick.) Being developed from a 90-degree V8, the Buick V6 originally had uneven firing impulses that made it a rough engine, particularly at idle. Buick re-engineered the engine with a split-pin crank to provide even firing and smooth running in 1977.
The old aluminum V8 was sold off to the Brits but that's another story.)
The government & OEMs making decisions, on our behalf -
