Details how U.S. automakers are in a crisis: car prices have climbed out of reach for many buyers, Chinese and EV-focused rivals are cheaper and faster-moving due to in-house manufacturinf, with a 30% lower advantag. Legacy brands like Chrysler and Ram are struggling to adapt without alienating loyal customers.
Cliffs By the Numbers
Average new U.S. vehicle price: about $50,000 dollars, up roughly 30% vs. five years ago.
Share of models under $20,000 dollars before 2018: about 20% of the market; by late 2024.
Rough affordability limit for about half of U.S. households: around $25,000 dollars for a new car.
Chinese automakers’ cost advantage vs. legacy global automakers: roughly 30%.
Ram sales trend: fell every quarter from early 2024 through early 2025 after dropping the HEMI V8.
Manufacturing By the Numbers
Chinese automakers have roughly a 30% total cost advantage over traditional global automakers, driven heavily by lower assembly and manufacturing costs.
They cut assembly costs through vertical integration (in‑house batteries and components), highly modular vehicle platforms, and more automation on production lines.
Faster development cycles and extensive virtual testing reduce engineering hours and rework on the factory floor, further lowering per‑vehicle assembly cost.
Legacy U.S. automakers face higher labor costs, more complex legacy plants, and slower product cycles, which keep their assembly costs significantly higher per vehicle.
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