Comment Well the price-increase strategy is failing (Score 2) 135
The car industry in the "west" has a big problem, the market doesn't grow. You won't be able to sell twice as many cars as you do now in X years, as your market is saturated. The only way to increase revenue (without doing anything difficult) is to increase the price of the cars themselves. If you don't grow, investors will get angry.
Car manufacturers saw the switch to electric vehicles as a way to increase car prices. That's why they offered them at higher prices than comparable ICE vehicles.... even though the costs to make an electric drive-train are now smaller than for an ICE. (which was predictable and predicted of course)
Chinese manufacturers don't have that problem. They sell more cars every year. They don't care about raising car prices that much. That's why they now offer affordable electric cars.... BTW the total subsidies the Chinese government puts on Electric cars there... are in the same magnitude as car subsidies in Germany. (Germany is obviously a much smaller market)
Now how to get out of this problem? It is similar to the problem the photographic film industry faced. The successful example of a company managing to deal with this change was Fuji-Film. They realized that they had lots of "side projects" that came out of the film manufacture business. They made special plastic sheets for LCDs, they were making chemicals for the pharma and cosmetics industry. They had consulting businesses for emulsions. They realized that they could strengthen those "side-quests" to get through the storm. Today Fuji-Film not only still exists, but it's a strong company again... and yes, they still make film, but now it's just a small part of their business.
Could this be a model for the car industry? In theory yes, however, at least in Germany they went through extreme outsourcing. There is virtually nothing left that is not directly car related that is non-trivial to do. They don't have knowledge about rubber... since the tires are outsourced. They don't know about semiconductors... since they outsourced that.