Comment by zamadatix
5 days ago
Keep in mind labor is something like 10%-15% of the cost of a new car so even if you cut that down by 80%, including transport, and ignored recouping capital cost to actually move the production lines then you'd still need to move the production in less than 2 years to actually see the price decrease rather than "not move up as fast" at 3% car price inflation of the early 90s. Interestingly there was a dip in the price increase rate of cars at the end of the 90s https://www.in2013dollars.com/New-cars/price-inflation but it's too large to have been reasonably attributable to this trade change.
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