Cars, once symbols of independence for Americans, have become luxury items averaging around $50,000—30% more than a few years ago. Affordable models under $20,000 are nearly extinct, despite automakers recording high profits in 2023. Challenges arise from slim profit margins and heavy investments in electric vehicle technologies. Although Chinese manufacturers can produce cheaper cars, they face barriers like tariffs. Industry insiders believe that merely overcoming these obstacles isn’t enough; American automakers must enhance their competitive strategies to thrive in a changing market landscape.
