Taxation
Both European and Japanese have tax systems that favor exports and hinder imports. Europe has a Value Added Tax of 16 to 19%. Japan has a similar one. In both areas, products that are exported have the VAT forgiven. An American will pay far less than his European counterpart for a Mercedes or a BMW. Ditto for the Japanese. On the other hand, exports from the USA are charged the VAT on top of all US tax content. In essence it is a tariff in our exports and a subsidy on their exports that doesn’t violate GATT. It is one of the main reasons we are non-competitive in the world markets.

In addition, foreign cars come to the US through their US arms. Costs of autos and parts for their US assembly plants are structured to minimize US profits/corporate profit taxes. Most assembly plants have received property tax mitigation as they played states against each other.

Medical Costs
Most non-US countries have socialized medicine which is paid for with broad based taxes, VAT in Europe, GST in Canada etc. US manufacturers pay the medical insurance for existing and retired employees which must be added the cost of the cars. 15 years ago there was $1,800 of medical cost content per vehicle at GM. Probably it is higher now.

If the US is to be competitive in the international manufacturing market, we must address these issues. It involves far more than autos.

Slightly over a thousand were built and leased. The direct production costs were reputed to be over $100,000 per copy, but were leased for $400/month, more for a 220v external charger. Each car produced carried a million dollars of development costs. That’s heavy change.

But here’s the problem. While government can mandate production levels, they can’t mandate sales. There is no way 10% of the California public would buy a vehicle that had a 100 mile range (50 mile radius) and would require a tow if you ran out of fuel. And would take 8 hours to fill up the tank.

And anyway, GM couldn’t sell the cars anyway. Under Calfornia franchise laws (as in most other states as well), only authorized dealers can do that. That mean’t GM (or any other manufacturer) would require their dealers take 10% of their monthly planning as unsalable ZEVs. It would be up to the dealers to get rid of them and take the loss.

Now anyone familiar with the auto industry knows that dealers aren’t shrinking violets. It would have been hilarious to see how the dealers would have reacted. Fortunately a federal court settled the issue in the auto companies’ favor.

But that’s what will happen when if an auto Czar can mandate production of unsalable cars.

In my defense, though, you might have chosen a different verb….