Update: It’s obvious I’m confusing as many or more folks with this post as I am enlightening some. As an addicted Economist reader, I enjoy unraveling the myths and stereotypes that Europeans pay $30k for a basic Ford Focus or pay $9 for a gallon of gas. We do, if we go there with our dollars. They don’t. The information below is intended as a set of tools to better understand the issues, but will not explain them all perfectly. I’ve run out of time to respond to comments, so I hope this helps. Or pick up an Economist :)
European new car prices can be as confusing to us Yanks as ordering from a menu in Latvia. We’re always hearing about tiny $29k econoboxes and the like. List prices are typically converted to US dollars, and the results can be very misleading. MSRPs are assumed to be more solid than ours. And the 19% VAT (value added tax) is not factored in. The result often is an assumption that European car manufacturers are getting ginormous prices for their little hatchbacks. Lets pull back the curtain of confusion and seek some truth. Like the Audi A3 shown above: if you factor in purchasing power parity, remove the (included) 19% tax, and factor in the 29% discount being offered, the equivalent US price is: $12,353. Allow me to explain:
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- Tassos VW's EV program losses have already been horrific, and with (guess, Caveman!) the Berlin-Brandenburg Gigafactory growing with leaps and bounds, the future was already quite grim for VW and the VW Group.THis shutdown will not be so temporary.The German Government may have to reach in its deep pockets, no matter how much it hates to spend $, and bail it out."too big to fail"?
- Billccm I had a 1980 TC3 Horizon and that car was as reliable as the sun. Underappreciated for sure.
- Inside Looking Out I did not notice, did they mention climate change? How they are going to fight climate change, racism and gender discrimination. I mean collective Big 3.
- Lou_BC I'm not too picky about gloves. If I'm concerned about heavy oil or grease contamination, I'll donn nitrile gloves. Heavier work and I'll use "old school" leather gloves, fake leather, synthetic or whatever is available.
- Dusterdude Getting the popcorn ready . May be a good plan for strikers to make sure they own good winter jackets for future pickets .