I think the problem is legacy automakers don't have the money to invest in new plants and shutdown old ones.
We in the west (and also in Japan and South Korea) finance our investments with borrowing. We loathe any project that involves government subsidies, causing opposition to projects that are not low hanging fruits. We load the cost of financing onto the cost of production so much that makes our products uncompetitive. We are at a disadvantage competing against directed economies like communist China where the financing cost is shared between the state and investors.
Not overnight but in a couple of years. The cost of LFP cells is currently $53/kwh, making a 70kwh pack cost less than an average ICE motor. The main issue facing European automakers is they pay typically twice the price Chinese competitors for their battery packs and labour.
We are never going to be able to compete with the Orient, so our western manufacturers are on the right lines by going upmarket with fewer sales at high margins. Our consumers seem to like that too, few ever bought Citroen 2CVs and few buy Dacia now.
That fewer cars policy suits governments too, but they are being schizophrenic by wanting ever higher percentages of EVs. The two cannot happen in a free market, it can only happen with enforcement by physical prevention of i.c. ownership, new or second hand, rather like the rigidly controlled and limited car ownership in Singapore.
But any government introducing that had better lock themselves into office, since they'd never get elected again.
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