Why American Cars Are So Expensive

Cars once promised independence and transportation for all Americans. Now, they are a luxury product that cost about $50,000, nearly 30% higher than just a few years ago. Affordable vehicles, especially those below the price of $20,000, have nearly disappeared. And while Automakers pulled in record profits in 2023, slim margins combined with deep investments into EV batteries, software and other technology is making it hard to produce cars much cheaper. Chinese automakers can, but they're impeded by tariffs and rules. Insiders say that is just a bandage - automakers need to compete.

Chapters:
00:56 Title card - Why American automakers can’t make cheap cars
1:05 Chapter 1 - Affordability
3:02 Chapter 2 - How cars got so expensive
6:07 Chapter 3 - Making a cheaper car
9:08 Chapter 4 - Competing with China

Producer: Robert Ferris
Editor: Evan Lee Miller
Animation: Jason Reginato, Christina Locopo
Additional Camera: Natalie Rice
Senior Managing Producer: Tala Hadavi
Additional footage: Cadillac, Chevrolet, Ford, Getty Images, GMC, Hyundai, Rivian Stellantis, Tesla, Toyota

» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC
» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision

About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more.

Want to earn more money at work? Take CNBC’s new online course How to Negotiate a Higher Salary. Expert instructors will teach you the skills you need to get a bigger paycheck, including how to prepare and build your confidence, what to do and say, and how to craft a counteroffer. Register now and use coupon code EARLYBIRD for an introductory discount of 50% off through Nov. 26, 2024: https://cnb.cx/4f4s3rZ

Connect with CNBC News Online
Get the latest news: https://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC on Threads: https://cnb.cx/threads
Follow CNBC News on X: https://cnb.cx/FollowCNBC
Follow CNBC on WhatsApp: https://cnb.cx/WhatsAppCNBC

#CNBC

Why American Cars Are So Expensive