Why Chinese Cars Are So Cheap, Rivian R2 v BMW iX3 v Volvo EX60, GMC Sierra EV
About this episode
The hosts dig into why Chinese cars can be so inexpensive, pointing to thin margins, vertical integration, low energy costs, and short development cycles rather than just subsidies. They also compare the Rivian R2 with the Volvo EX60 and BMW iX3, weighing charging speed, range, and architecture choices. Along the way, they touch on Hyundai’s automated factories, the Venue’s bargain pricing, and a week in the GMC Sierra EV that highlighted both its utility and its heavy, inefficient nature.
In this episode of the Auto Buyer's Guide, the team goes deep on today's most talked-about vehicles and market trends. First up, they put three compact EVs head-to-head — the Rivian R2, BMW iX3, and the new Volvo XC60 long-range — breaking down real-world range, charging strategy, software ecosystems, and which one actually wins for everyday drivers. They also take a close look at the Silverado EV before diving into the Infiniti QX65, Infiniti's would-be Lexus RX fighter, and debating whether its troubled VC turbo engine and missing hybrid option are too little, too late. Then, the conversation shifts to the booming Chinese auto market — from Geely's Guinness-certified hybrid engine to BYD's ultra-efficient systems — exploring why Chinese cars deliver jaw-dropping specs at a fraction of Western prices, and what that means for the global industry.
Bmw Ix3
"...the R2 versus the BMW IX3 versus the new Volvo EX60..."
BMW iX3 is BMW’s electric version of a compact SUV. The hosts bring it up to compare how BMW’s EV stacks up against other options like Rivian and Volvo.
BMW iX3 is an all-electric compact SUV based on BMW’s X3 platform. The episode uses it as a benchmark against newer EVs, which matters because BMW’s pricing and range/charging experience can be very different from newer entrants.
long range
"...the new Volvo EX60, which is the long range compact winner."
“Long range” means the EV can go farther before needing to recharge. It depends on the battery size and how efficiently the car uses energy.
“Long range” refers to an EV’s ability to travel farther on a single charge. It’s usually tied to battery capacity, efficiency, and how the manufacturer estimates range under standardized testing.
EX60
"...so the R2 versus the BMW IX3 versus the new Volvo EX60, which is the long range compact winner. And we ..."
The EX60 is an electric Volvo model that’s being talked about as a compact EV with long range. The podcast is comparing it to other upcoming electric vehicles to see which one best fits different needs. The main focus is how far it can go and how efficiently it uses energy.
The EX60 is discussed as an electric Volvo model that’s aiming to be the “long range compact winner,” meaning it’s positioned for strong efficiency and usable range in a smaller electric format. The podcast contrasts it with other upcoming EVs, including the Rivian R2 and BMW IX3, to show how each targets different buyer priorities. It’s relevant because range and efficiency are key deciding factors for EV shoppers.
QX65
"Looking at the Infinity QX65, I think that video just went live as we hit record here today..."
Infiniti QX65 is a family-sized Infiniti SUV with three rows. The hosts are saying it looks good, but they’re questioning whether the changes are big enough to convince buyers to switch.
Infiniti QX65 is a three-row Infiniti SUV that the hosts evaluate as part of Infiniti’s lineup strategy. In this segment they discuss how much has changed versus the previous “three-row less sexy version,” and whether it can attract shoppers away from competitors.
Nissan Gtr
"...paint here with gold flakes in it is based on the GTR. And I'm thinking as much as I would love an Inf..."
The Nissan GT-R is a sports car built for high performance. The podcast mentions it because of a recognizable look, like a paint style that’s associated with the GT-R. It’s being used as a reference for design and identity.
The Nissan GT-R is a high-performance sports car known for its track-capable performance and distinctive styling. In the podcast, it’s referenced through a specific visual detail (“paint…based on the GTR”), tying the car to a recognizable design identity. That’s why it appears—either as a reference point for aesthetics or as a shorthand for performance heritage.
Lexus RX
"...is it enough to convince a Lexus RX shopper to jump ship?"
Lexus RX is a well-known luxury SUV that many shoppers compare against other brands. The hosts are asking whether Infiniti’s changes are enough to convince RX buyers to switch.
Lexus RX is a popular midsize luxury crossover that the hosts use as a key competitor for Infiniti’s QX65. The discussion centers on whether Infiniti can pull buyers who currently shop the RX to consider switching.
BMW X5
"... Case in point, an engine. It's not that anybody X5 GLE intending is going to run out and buy that In..."
The BMW X5 is a large, comfortable SUV made by BMW. People talk about it because it has a powerful engine and is meant for everyday driving plus longer trips. It’s the kind of car that gets mentioned when discussing how engines work and how they affect ownership.
The BMW X5 is a midsize luxury SUV known for strong performance and a premium driving feel. It often comes up in discussions about engines and how powertrains are designed and used in real-world ownership. In a podcast context, it’s a reference point for how certain components (like engines) can be a key part of what buyers care about.
Jeep Grand Cherokee
"...expensive grand Cherokee is you're looking at the same sort of slightly larger two row situation."
The Jeep Grand Cherokee is another popular SUV. The hosts are basically saying that even though some buyers might cross-shop, the typical Grand Cherokee customer isn’t the same as the Infiniti buyer.
Jeep Grand Cherokee is referenced as a shopper base that may overlap with Infiniti’s QX65, but the hosts suggest the buyer profiles are different. This is a “who is the target customer?” comparison rather than a deep technical breakdown.
Infiniti QX60
"...Infinity is, you know, going to be producing nearly as many of these as they are the QX 60. So again, I think that's under control."
Infiniti QX60 is Infiniti’s midsize SUV. The hosts are using it as the baseline, saying the QX65 is a sportier take on the same general formula.
Infiniti QX60 is a midsize three-row SUV that the hosts use as a reference point for production volume and platform/engine strategy. They say the QX65 is the sportier version of the QX60 and shares the same engine, but with different tuning and character.
dyno
"...even if on the dyno, everything's the same. The big difference though is all the sound they're piping in..."
A dyno is a machine that tests a car’s power in a controlled way. The point here is that even if the car feels different, the measurable results might be the same.
A dyno (dynamometer) is a test machine used to measure engine and drivetrain output under controlled conditions. The hosts mention “on the dyno” to say that despite different tuning/feel, the underlying performance may be similar.
throttle response
"...we tuned it to sound like a different engine. So yes, throttle response is kicked up a little bit..."
Throttle response is how fast the car reacts when you press the gas pedal. A “quicker” throttle response usually makes the car feel more lively and eager.
Throttle response is how quickly the car reacts when you press the accelerator. In performance tuning, manufacturers can change engine mapping and transmission behavior so the car feels more immediate and “sporty.”
shifts are more aggressive
"...throttle response is kicked up a little bit and the shifts are more aggressive..."
When they say the shifts are more aggressive, they mean the car changes gears in a more “sporty” way. That can make it feel quicker, but it might be less smooth than a comfort-focused tune.
“More aggressive” shifting means the transmission changes gears more quickly or at different engine speeds to emphasize performance. This can make the car feel faster, but it may also affect smoothness and efficiency.
V six
"...that soundtrack is a V six soundtrack. And they said it's we got the great harmonics of a V six..."
A V6 is a type of engine with six cylinders. It’s often associated with smoother power delivery, and the hosts are debating whether Infiniti should actually use one instead of simulating the sound.
A V6 is an engine with six cylinders arranged in a “V” shape. The hosts discuss whether Infiniti’s vehicles should have a real V6, and they criticize the mismatch between the car’s sound (V6-like) and the engine they believe is installed.
soundtrack
"The big difference though is all the sound they're piping in and that soundtrack is a V six soundtrack."
They’re talking about the car playing an engine “soundtrack” through speakers. The idea is to make the car sound more like a V6 even if the engine isn’t actually a V6.
In modern cars, a “soundtrack” often refers to artificial or enhanced engine sound delivered through speakers. The hosts are pointing out that the vehicle uses audio effects to create a V6-like experience even if the hardware differs.
four cylinder
"...I was like, then why do you have a four cylinder under the hood and why are we pretending..."
A four-cylinder engine is a smaller engine layout with four cylinders. The hosts are saying the car sounds like a bigger engine, but it’s actually a smaller one.
A four-cylinder engine uses four cylinders to generate power, typically prioritizing efficiency and lower cost. The hosts are contrasting a four-cylinder under the hood with the V6-like sound the car is designed to imitate.
variable compression engine
"...I had such a problem with that two liter turbo I loved the concept I was real gung ho on the variable compression engine."
A variable compression engine can adjust how “squeezed” the air-fuel mixture is inside the engine. That helps the engine be efficient in everyday driving and stronger when you need more power.
A variable compression engine changes the effective compression ratio to improve efficiency and power across different driving conditions. The speaker says they were excited about Infiniti’s “variable compression” concept, which is a specific technology rather than just a general “more power” claim.
two liter turbo
"...Infinity has had such a problem with that two liter turbo I loved the concept..."
A “two liter turbo” is a relatively small engine that uses a turbo to make more power than you’d expect from its size. In this segment, it’s part of the discussion about Infiniti’s engine choices.
“Two liter turbo” describes an engine with about a 2.0-liter displacement that uses a turbocharger to boost air intake and increase power. The hosts are referencing Infiniti’s smaller turbocharged engine strategy as something they had mixed feelings about.
VC turbo
"“The promise was fuel efficiency with decent performance… If you if you made the VC turbo to a regular automatic, it seems better.”"
They’re talking about a particular kind of turbo engine setup. The point is that the way the turbo system is designed can affect how smooth the car feels and whether it has long-term reliability issues.
“VC turbo” refers to a specific turbocharged engine design the speaker is discussing. In this context, it’s being compared to other transmission pairings, implying the turbo setup and its calibration/engineering are tightly linked to how the car behaves and how reliable it is over time.
regular automatic
"“If you if you made the VC turbo to a regular automatic, it seems better.”"
They’re contrasting a standard automatic transmission with a CVT. Their takeaway is that the car feels better with the more traditional gearbox.
“Regular automatic” here means a traditional automatic transmission with fixed gear ratios (as opposed to a CVT). The speaker implies that the turbo engine works better when paired with this more conventional transmission approach.
CVT
"“But if you made it to the CVT, gosh, there's just there's so much going on there that that it just never felt fully baked.”"
CVT stands for a transmission that can change ratios smoothly, so the engine can stay in its best range. The speaker is saying that combining this with the turbo design didn’t feel fully sorted.
A CVT (continuously variable transmission) is a gearbox that can smoothly change gear ratios instead of using fixed “gears.” The speaker suggests that pairing the turbo setup with a CVT introduces complexity that can make the overall system feel less refined or less reliable.
ice
"“…and just buy an ice and eight speed automatic and stop any of the worries…”"
ICE means the car runs on a traditional fuel-burning engine. They’re arguing for using a conventional engine instead of taking on extra risk with newer tech.
“ICE” stands for Internal Combustion Engine—engines that burn fuel (like gasoline or diesel) rather than using an electric motor as the primary power source. The speaker is contrasting this with newer, more complex alternatives and suggesting sticking with a conventional powertrain.
eight speed automatic
"“…just buy an ice and eight speed automatic and stop any of the worries about that…”"
This is a traditional automatic transmission that has eight different gear steps. The speaker thinks it’s a more proven combination that reduces uncertainty.
An “eight speed automatic” is a conventional automatic transmission with eight forward gear ratios. The speaker suggests that pairing an ICE with an eight-speed automatic is a safer, more familiar solution than the newer turbo/CVT approach.
Stellantis
"“You know, that's what we see over at Stellantis is they're throwing V eights back and everything.”"
Stellantis is a major car company that makes lots of different brands. The speaker is saying they’re leaning on tried-and-true powertrains because customers like them.
Stellantis is the automaker formed from the merger of Fiat Chrysler Automobiles and PSA Group. In the segment, the speaker credits Stellantis with using familiar engine/transmission strategies (like V8s) because customers respond to them.
V eights
"“…Stellantis is they're throwing V eights back and everything.”"
A V8 is an engine with eight cylinders arranged in a V shape. They’re saying some automakers are bringing back V8s because people seem to like them.
“V eights” refers to V8 engines—eight-cylinder engines arranged in a V configuration. The speaker is using this as an example of manufacturers reverting to established, customer-appealing powertrains.
hybrid
"It's no hybrid. There's no plug in hybrid."
A hybrid uses both a gas engine and an electric motor. The electric part helps with efficiency and can make stop-and-go driving feel smoother.
A hybrid powertrain combines an internal-combustion engine with an electric motor. In practice, hybrids can improve fuel economy and smooth out low-speed driving, which is why the hosts note the absence of a hybrid option as a competitive drawback.
V6
"There's no v6 for the things that are X is not doing anymore. Right."
A V6 is a type of gas engine with six cylinders. Some buyers prefer it because it can feel smooth and provides strong power without needing to be fully electric.
A V6 is an engine with six cylinders arranged in a “V” shape, commonly used in many mainstream and luxury vehicles. The hosts are saying the rival doesn’t offer a V6 option, which matters to buyers who want that specific kind of smooth, traditional power.
Infiniti QX80
"Right. I think it's it's going to be more attractive to certain folks, but even the shape is a little bit strange because they went just super, super sleek and sharp and you know, edgy on the back end, but it's still got that rounded front like you get in a qx 60 or qx 80. So even there, there's a little bit of a little bit of asymmetry."
The Infiniti QX80 is a big luxury SUV. It’s designed to be comfortable and spacious, but it also has a styling shape that stands out. The podcast is pointing out that its look may appeal to some people more than others.
The Infiniti QX80 is a large luxury SUV aimed at buyers who want space and a more upscale cabin. The podcast notes its distinctive, somewhat unconventional styling—especially around the rear design. It’s discussed as a vehicle that may appeal to certain shoppers because of its unique look and presence.
Nissan Mercedes deal
"I think it's just disappointing that the Nissan Mercedes deal didn't go further."
They’re talking about a partnership between Nissan and Mercedes-Benz. Partnerships like this can lead to shared parts or technology across brands.
The speaker is referring to a business partnership between Nissan and Mercedes-Benz, where components and platforms can be shared or co-developed. In this context, it’s used to explain why some Mercedes-style hardware shows up in Nissan-built vehicles.
nine speed rear wheel drive transmission
"The nine speed rear wheel drive transmission is a Mercedes transmission being built by Nissan."
This is the car’s gear system. “Nine-speed” means it has more gear steps than a typical car, which can help it feel smoother and use fuel better. “Rear wheel drive” means the power goes to the back wheels.
A “nine-speed” transmission has nine forward gears, letting the engine run closer to its most efficient range more often. “Rear wheel drive” means power is sent to the rear axle, which typically changes how the car accelerates and handles compared with front-wheel-drive layouts.
infinity
"...but not, not what we used to see with infinity where they basically took a GLA and reskinned it and made that an infinity."
They mean Infiniti, Nissan’s luxury car brand. The point is that Infiniti used to borrow a lot of engineering from other companies, and the speaker thinks it didn’t go as far as before.
“Infinity” here refers to Infiniti, Nissan’s luxury brand. The speaker discusses how Infiniti used to share and re-skin platforms with Mercedes-based products, and how that level of integration didn’t continue.
Infiniti QX55
"And that's a type that I think works for infinity in the U.S. If they could hop on that bandwagon and have access again to the CLA's platform and give us a small SUV to replace the qx 55 based on that with Mercedes engines or a Mercedes Nissan engine and a Mercedes transmission. You know, Mercedes front wheel drive transmissions."
The Infiniti QX55 is a small luxury SUV. The podcast is saying it works for Infiniti in the U.S. and discussing how Infiniti could offer a similar smaller SUV again. It’s about matching the right size of vehicle to what buyers want.
The Infiniti QX55 is a compact luxury SUV that the podcast describes as fitting a specific niche in the U.S. market. It’s mentioned in relation to platform and lineup access, implying Infiniti’s strategy for offering a smaller SUV. That’s why it comes up—buyers often care about size, platform, and how models are positioned.
infinity G 37
"Oh, man, it's getting expensive... I've got I've got a gas guzzling infinity G 37."
The Infiniti G37 is an older Infiniti model that was more about driving than fuel economy. The driver mentions it because it “drinks gas,” so gas prices hit harder.
The Infiniti G37 is a performance-oriented luxury sedan/coupe from Infiniti’s lineup, known for a strong engine and driving feel. The speaker brings it up to contrast older, fuel-hungry cars with today’s higher fuel costs and the shift toward more efficient powertrains.
gas guzzling
"Oh, man, it's getting expensive... I've got I've got a gas guzzling infinity G 37."
“Gas guzzling” just means the car uses a lot of fuel. So when gas prices rise, it costs more to drive.
“Gas guzzling” is a casual way to say a vehicle has poor fuel economy, typically because its engine and gearing consume more fuel per mile. It’s often used to highlight how fuel costs can become a bigger day-to-day expense.
diesel
"But I just I just bought 80 gallons of diesel at six dollars and ninety cents. Oh boy. Yeah. Yeah. Yeah. I definitely saw it was not a whole week to go like seven fifty for diesel."
Diesel is a type of fuel. Trucks often use it, and diesel engines work differently than gas engines.
Diesel is a fuel used in many trucks and some cars. It’s delivered by a diesel engine, which compresses air to ignite the fuel rather than using spark plugs like a gasoline engine.
Hyundai
"But over in Savannah. So we got to go look at Hyundai's plant. Second time we've been out there. But obviously they've been working on it and they are hiring for second and third at least second ship second and third shifts coming up."
Hyundai is a car company. They’re making cars at a factory the hosts visited, and the factory is hiring more workers.
Hyundai is a major automaker that builds vehicles and also operates manufacturing plants. In this segment, the hosts mention visiting Hyundai’s plant and note hiring for additional shifts.
second and third shifts
"But obviously they've been working on it and they are hiring for second and third at least second ship second and third shifts coming up."
A “shift” is a block of work hours. If a factory adds second and third shifts, it usually means they’re ramping up production and need more workers.
“Shifts” are scheduled work periods at a factory. Adding second and third shifts usually means the plant is increasing production and needs more labor coverage beyond the day shift.
Hyundai Genesis
"...oking to build ten models between Hyundai Kia and Genesis. So even those are totally not the same companie..."
Genesis is Hyundai’s luxury car brand. The podcast is talking about how many new models these related brands plan to build. That matters because it influences what luxury cars you can buy and when they show up.
Genesis is Hyundai’s luxury brand, and the podcast mentions it in the context of how Hyundai, Kia, and Genesis plan to expand their model lineup. That kind of discussion is important because it affects what vehicles will be available and how quickly new products arrive. It’s also relevant when talking about brand strategy and where luxury offerings are headed.
tax credits
"...they bet the farm on the factory that. Was going to give them the tax credits and all of that."
Tax credits are financial incentives from the government that can make certain cars cheaper or make it easier for companies to build them. The hosts are saying the factory plan relied on those incentives.
Tax credits are government incentives that reduce the amount of tax a buyer or manufacturer owes, often tied to qualifying vehicles or production. The hosts suggest the factory plan depended on these incentives, influencing what vehicles were planned.
EPA
"Admittedly that's not EPA fifty nine miles per gallon. But even even if it ends up at fifty miles per gallon if it was a test..."
EPA is the U.S. agency that does standardized tests for things like fuel economy. If a car’s mileage claim isn’t based on EPA testing, the real-world or official number could be different.
EPA refers to the U.S. Environmental Protection Agency, which runs standardized vehicle testing used to publish official fuel-economy ratings like mpg. When a claim isn’t “EPA-rated,” the number may come from different testing conditions or marketing estimates.
Guinness
"And the drivetrain has actually been certified by Guinness as being the most efficient passenger car engine ever developed and mass produced. And Geely's been doing a lot of these three speed hybrid systems..."
Guinness is an organization that keeps world-record claims. In this clip, they’re referenced to support an efficiency brag about a hybrid engine.
The segment claims Guinness certification for “the most efficient passenger car engine ever developed and mass produced.” Guinness World Records is used here as a credibility marker for the efficiency claim, though the exact record criteria aren’t detailed in the excerpt.
Geely
"And Geely's been doing a lot of these three speed hybrid systems around the world. So is a BYD number of Chinese companies..."
Geely is a Chinese car company. In this episode, they’re mentioned as being behind some of the hybrid designs that aim to be very efficient.
Geely is a Chinese automaker that’s discussed here as developing “three-speed hybrid” architectures and related engine/transmission strategies. In this segment, Geely is positioned as a key player in hybrid efficiency technology.
BYD
"So is a BYD number of Chinese companies actually have variations on this theme where they're they're pushing ahead with parallel hybrid systems..."
BYD is a Chinese car brand. The hosts mention it in the context of hybrid systems and efficiency-focused designs.
BYD is a Chinese automaker known for electrified powertrains. Here, it’s mentioned as part of the group of companies using hybrid strategies with both parallel and serial operating modes.
serial mode
"...parallel hybrid systems that have a serial mode to allow them to stop and idle things like that. But they're actually using a three speed automatic transmission..."
In serial mode, the engine acts more like a generator than a direct mover. The wheels are driven by the electric system, and the engine helps supply power—especially when you’re stopped or idling.
A “serial mode” is a hybrid operating strategy where the engine doesn’t directly drive the wheels; instead, it generates electricity (or power) to feed the electric drivetrain. This can be useful for stop-and-idle situations because it lets the system manage engine operation more efficiently.
three speed automatic transmission
"But they're actually using a three speed automatic transmission so they're not using the Toyota like system that some manufacturers are doing. But they're getting fuel efficiency numbers..."
It’s an automatic gearbox with only three “gear steps.” Fewer gears can mean simpler hardware, and in a hybrid it can still work well by matching the engine and motor to the driving situation.
A three-speed automatic transmission is a gearbox with three forward ratios that shifts automatically. In hybrids, using fewer gears can reduce complexity and cost, while still allowing the system to cover low-speed and high-load needs effectively.
low gear for low speed travel and high torque demand situations
"It's made it to a very simple three speed transmission. There is a low gear for low speed travel and high torque demand situations."
Low gear helps the car pull harder when you’re going slowly or when you need extra power. It’s how the drivetrain gets more “push” without needing high engine speed.
Using a “low gear” in a hybrid transmission helps provide stronger torque at low speeds and during high-demand moments (like climbing or accelerating from a stop). Torque demand is when the driver needs more pulling power than the engine can efficiently provide in higher ratios.
R&D costs
"But the big thing here is that they are able to spread some of these R&D costs over a broad market here. And, and they also run differently."
R&D costs are what companies spend to design and develop new tech and vehicles. If they sell more cars, the company can spread those development costs over more units, which helps keep prices lower.
R&D costs are the money spent on research and development—engineering, prototyping, testing, and design work needed to create new vehicles and technologies. Spreading these costs across a larger market can reduce the cost per car.
labor costs
"So labor is often cited as the big reason that Chinese cars are cheap. This just doesn't hold water because labor is not a big part of any new cars cost structure."
Labor costs are the money a company spends on workers. The point here is that wages aren’t the main reason some cars are cheap—other factors like automation and how the company organizes production are bigger.
Labor costs are the wages and related expenses paid to employees involved in manufacturing. The segment argues that labor is a smaller share of total vehicle cost than many people assume, and that automation and supply-chain structure matter more.
MSRP
"Labor is around 10% of most new vehicles MSRP with direct labor from the car manufacturer coming in somewhere around 5%."
MSRP is the “sticker price” the manufacturer lists for a car. It’s often used as a reference point to talk about how costs are split up inside the price.
MSRP (Manufacturer’s Suggested Retail Price) is the sticker price a manufacturer recommends before discounts and dealer pricing. In the segment, it’s used to estimate what portion of the sticker price goes to labor.
automation
"So Chinese cars are highly automated in the manufacturer, not just because the employees are being paid less but also because that automation there."
Automation means using machines to do parts of the manufacturing process. The idea is that more automation can reduce how many workers are needed and make production more efficient.
Automation in manufacturing means using machines and software to perform tasks that humans would otherwise do. The segment claims Chinese manufacturers rely more on automation, which can reduce labor needs and improve consistency.
vertical integration
"A bigger segment of this though is the vertical integration. So when you take a look at Korean cars, their labor costs and some of these other costs are lower, because Hyundai has mines and they have a shipping company and they have a heavy industry arm, etc."
Vertical integration means one company does more of the steps involved in making the car. Instead of relying on lots of outside suppliers, it controls key parts of the process, which can lower costs.
Vertical integration is when a company controls multiple steps of the supply chain—like mining materials, producing parts, and handling logistics—rather than buying everything from outside suppliers. That can reduce costs and improve coordination, which helps keep vehicle prices down.
economies of scale
"Bigger though, economies of scale, fewer legacy costs, especially retirement costs versus the American car companies for sure, very short development windows because it's a highly competitive market."
Economies of scale means making lots of cars can be cheaper per car. When a company builds more units, the “big upfront costs” get spread out, so each car costs less to produce.
Economies of scale means the average cost per car drops as a company builds more units. Large production volumes let manufacturers spread fixed costs (like tooling, engineering, and factories) across many vehicles, lowering the per-vehicle price.
blunderbust kind of approach
"They tend to take more of a blunderbust kind of approach where they scatter shot out designs, and then they kill them off quick."
The speaker is describing a strategy of trying lots of ideas quickly instead of taking a long time to perfect one. The goal is to move fast and keep improving as the market changes.
This refers to a “scattershot” product strategy—launching many design ideas quickly rather than spending years refining a single concept. The segment links it to faster development cycles and frequent iteration in a highly competitive market.
MG
"[1067.9s] MG's have some very basic stuff, so some of the component qualities lower. [1072.6s] If you rent cars in Europe, you'll notice that you hop in an MG that's like the equivalent of a RAV4, and at 20,000 miles, the carpet's worn through sticks and floor mats in it, I guess."
MG is a car brand that sells budget-friendly cars. The hosts are saying some MG models feel cheaper inside and have less polished software compared with higher-priced competitors.
MG is a car brand (owned by SAIC in China) that’s often positioned as a value-focused alternative in markets outside China. In this segment, the hosts connect MG’s “basic” offerings to lower perceived component quality and software maturity.
phased out
"[1106.8s] But that's heavily skewed towards the EV side of things, and it's being wound down. [1116.1s] Most of the subsidies are more of a direct to consumer subsidy rather than a direct BYD subsidy."
“Phased out” means the government support is being reduced step-by-step until it’s gone. The hosts are saying that can affect how cheap EVs are.
“Phased out” means a subsidy program is gradually reduced and eventually ends rather than stopping immediately. In this segment, it’s used to explain why EV pricing and manufacturer economics can change over time.
EV subsidies
"[1110.3s] At one point in time, EV subsidies in China were approximately $10,000. [1116.1s] Most of the subsidies are more of a direct to consumer subsidy rather than a direct BYD subsidy."
EV subsidies are government incentives that help lower the cost of electric cars. The speaker is saying China used to offer bigger incentives, but they’re now shrinking because the policy goal was to kick-start EV adoption.
EV subsidies are government financial incentives intended to make electric vehicles cheaper to buy or to encourage manufacturers to build more EVs. The hosts note that China’s EV subsidies were much higher at one point, and are now being phased out as electrification goals are met.
VAT rebates
"[1131.3s] The majority of government support for exported vehicles, though, that comes in the form of VAT rebates. [1137.0s] So in China, as in a lot of other countries, when you're buying supplies to build the car, you have to pay VAT, the value added tax, and then if you export the car, you can get that VAT refunded."
VAT is a tax added at each stage of making a product. When a country exports the finished product, some governments refund that tax so the exported goods aren’t taxed twice.
VAT rebates refer to refunds of value-added tax when goods (like cars) are exported. The idea is that you pay VAT on inputs during production, but when you ship the finished product abroad, you can reclaim that VAT.
value added tax
"[1137.0s] So in China, as in a lot of other countries, when you're buying supplies to build the car, you have to pay VAT, the value added tax, and then if you export the car, you can get that VAT refunded. [1147.1s] This is not unlike what we do in the US for manufacturing."
Value added tax (VAT) is a tax that gets added during the process of making and selling products. The hosts are saying that when cars are exported, some of that VAT can be refunded.
Value added tax (VAT) is a consumption tax charged on the value created at each step of production and distribution. In this segment, it’s important because VAT paid on parts and materials can be refunded when the finished car is exported.
pricing wars
"[1181.2s] The Chinese market is rife with just absolute bitter pricing wars. [1188.1s] Every manufacturer out there is trying to punch each other in the nuts all the time with their pricing, faster charging."
A “pricing war” is when car companies keep lowering prices to attract customers. The speaker is saying Chinese brands are competing so hard that it pushes prices down.
“Pricing wars” are periods when automakers aggressively cut prices to win market share, often leading to thinner profits across the industry. The hosts connect this to intense competition in China and mention “faster charging” as part of the broader battle for buyers.
Chevrolet Trax
"So even if you nickel and dimed, and this is what would be interesting for me is if, you know, like we love the Chevy Trax, if the Chevy Trax was nickel and dimed, how inexpensive could it actually get?"
They’re talking about the Chevrolet Trax as an example. The point is that if you add lots of small fees, the price can change a lot—and if you remove them, the car could get cheaper.
The Chevrolet Trax is being used as a hypothetical example of how pricing could drop further if it were “nickel and dimed.” The discussion is about how small add-on charges and pricing strategy affect the final cost.
nickel and dimed
"So even if you nickel and dimed, and this is what would be interesting for me is if, you know, like we love the Chevy Trax, if the Chevy Trax was nickel and dimed, how inexpensive could it actually get?"
It means the price gets pushed up by lots of small extra charges. Individually they seem minor, but together they can add up.
“Nickel and dimed” means charging lots of small fees or add-ons that add up to a noticeable total price. In car shopping, it often refers to options, destination/fees, and other charges that aren’t obvious at first glance.
sell direct
"So in some markets, the car companies can sell direct and you sell direct. If GM could sell that Chevy Trax without a Chevy dealer involved, it'd probably be 15, 20% cheaper at least."
Selling direct means the company sells the car straight to you instead of using local car dealers. The speaker says that can make the car cheaper because fewer middlemen take a cut.
“Sell direct” refers to a manufacturer selling cars straight to customers, without a traditional dealer network. The speaker claims that removing dealer involvement could reduce the final price because dealer margins and related costs are avoided.
Hyundai Venue
"It occurred to me, I'm driving a Hyundai venue this week, and the venue is now the least expensive new thing in America. It is not possible to get your venue over $25,000."
They’re driving a Hyundai Venue and calling it one of the cheapest new cars you can buy. The point is that it stays under about $25,000 once you include typical taxes and fees.
The Hyundai Venue is described as the least expensive new vehicle in America, with pricing staying under $25,000 “out the door.” The speaker uses it to illustrate how Hyundai reaches a low price through its sales and pricing approach.
out the door
"And most of the venues on the lot will be under 25,000 out the door, including the average sales tax and licensing structure in most states in the US."
“Out the door” means the final price you actually pay. It includes the car price plus taxes and fees, not just the base number on the sticker.
“Out the door” (OTD) price is the total amount you pay to buy the car, including the sticker price plus taxes, registration, and dealer fees. The speaker uses it to emphasize that the Hyundai Venue stays under $25,000 once typical taxes and licensing are included.
Kia Rio
"Like you could buy a Kia Rio once upon a time with no radio, no air conditioning, no power, anything's right. Crank windows, power or manual mirrors."
The Kia Rio is a small, budget-friendly car. The hosts are saying that some older versions were sold with very few features to keep the price low.
The Kia Rio is a compact car that the hosts describe as being sold “once upon a time” in very stripped-down versions. They’re using it as an example of how older budget pricing was achieved by removing convenience and comfort features.
crank windows
"Like you could buy a Kia Rio once upon a time with no radio, no air conditioning, no power, anything's right. Crank windows, power or manual mirrors."
Crank windows are windows you open and close by turning a handle by hand. They’re cheaper than power windows, which use a button and a motor.
Crank windows are manually operated side windows that you raise and lower with a hand crank instead of an electric motor. They’re a cost-cutting feature often found on very low-trim vehicles.
manual mirrors
"Like you could buy a Kia Rio once upon a time with no radio, no air conditioning, no power, anything's right. Crank windows, power or manual mirrors."
Manual mirrors are adjusted by hand. Instead of using a switch to move them, you physically move the mirror yourself.
Manual mirrors are side mirrors adjusted by hand rather than with power controls. Removing power adjustment is one of the common ways manufacturers reduce cost on base models.
interlock system to prevent theft
"And as we saw with Hyundai and Kia, then they get sued because they sold a model without, you know, an interlock system to prevent theft."
An interlock system is an anti-theft feature that helps stop someone from stealing or starting the car the wrong way. The hosts are saying some cheap models were sold without enough protection, leading to lawsuits.
An interlock system is an anti-theft safety feature that prevents the vehicle from being started or operated under certain conditions (for example, when the correct key or authorization isn’t present). The hosts reference lawsuits involving cars sold without adequate theft-prevention interlocks.
Toyota Camry
"It didn't matter what flat object you jammed in there, but they weren't unique either. I mean, people used to steal Camry's and Malibu's, etc. It's just that the Chinese cut or sorry, the Japanese companies and the American companies gave up the cheap part of the market."
The Toyota Camry is a common, everyday car that many people use for commuting and errands. Because it’s popular, it can also be a target for theft. That’s why it comes up when people talk about car security and prevention.
The Toyota Camry is a mainstream midsize sedan that’s widely known for being practical and easy to live with. It’s mentioned in the context of theft because certain popular models can attract attention. That makes it relevant in buyer discussions around security and ownership realities.
Toyota Tacoma
"Yeah, I mean, trust me, the thing we hear the biggest complaint is why Toyota Tacomas can't be less expensive, right? Where is my $10,000 Tacoma that I bought 25 years ago?"
The Toyota Tacoma is a popular pickup truck. The point here is that people want a much cheaper version than what’s available today.
The Toyota Tacoma is a midsize pickup truck. The hosts use it to illustrate how some popular vehicles have not gotten cheaper over time, and how buyers compare today’s pricing and features to older trucks.
Nissan Versa
"...the affordable market went in a slightly different direction where I think Nissan was probably the best example of this where you had a really low sticker price in Versa, but it jumped pretty rapidly..."
The Nissan Versa is a budget-friendly car. The hosts’ point is that the base price looks low, but the price goes up fast once you add the features most people want.
The Nissan Versa is an entry-level compact car often marketed with a low base price. Here it’s used to show how the “cheap” starting price can rise quickly once buyers choose popular options like an automatic transmission and power windows.
power windows
"...it jumped pretty rapidly as a percentage of MSRP if you wanted the automatic transmission and the power windows, which most people wanted..."
Power windows let you open and close the windows with buttons instead of turning a handle. The point is that many buyers want them, so the “base” price doesn’t stay low.
Power windows are window controls operated by electric motors instead of manual cranks. The hosts mention them as a common “must-have” feature that often pushes buyers away from the cheapest trim levels.
autonomous emergency braking
"...because the venue comes with autonomous emergency braking. It comes with power windows and air conditioning and powered door locks and remote keyless entry..."
Autonomous emergency braking is a safety feature that can automatically brake if it thinks a crash is about to happen. The hosts are saying newer budget cars may include this kind of protection.
Autonomous emergency braking (AEB) is a safety system that can detect an imminent collision and automatically apply the brakes to reduce speed or help avoid impact. In this segment, it’s used to argue that some “cheap” cars are safer and more feature-complete than older budget models.
remote keyless entry
"...powered door locks and remote keyless entry and a lot of the things that people want. It still has skinny tires..."
Remote keyless entry means you can use a fob to lock and unlock the car without putting a key in the door. It’s one of the convenience features buyers expect even on lower-priced cars.
Remote keyless entry (RKE) lets you lock/unlock the car and sometimes start it using a key fob without inserting a key into the door. The hosts list it as a common convenience feature included on the “cheap” model they’re discussing.
skinny tires
"It still has skinny tires, but at least it has a spare. It still has drum brakes in the back, but they're there."
Skinny tires are narrower tires than you’d see on many higher-end cars. They can help keep costs down, which is why they show up on some budget models.
“Skinny tires” refers to narrower tire widths, which can reduce rolling resistance and cost. The hosts mention them as a remaining cost-saving measure even on a more feature-rich budget car.
drum brakes
"It still has skinny tires, but at least it has a spare. It still has drum brakes in the back, but they're there."
Drum brakes are a type of brake system where parts press against the inside of a drum. The hosts are pointing out that some cheaper cars still use them in the rear.
Drum brakes use brake shoes inside a drum to slow the vehicle, typically found on the rear axle of some budget cars. Compared with disc brakes, drum brakes can be less effective in repeated heavy braking and may require more attention over time.
Apple CarPlay
"It has a, it has a eight inch LCD... Eight inch LCD with Apple CarPlay and Android Auto, not a lot of other features, but you know, you can connect your phone, you do your thing..."
Apple CarPlay lets you connect your iPhone to the car and use certain apps on the car’s touchscreen. It’s meant to make the infotainment easier and more familiar.
Apple CarPlay is a smartphone-integration system that mirrors a compatible iPhone’s apps and navigation onto the car’s infotainment screen. It lets drivers use familiar interfaces like Maps and music controls while keeping attention on the road.
Android Auto
"Eight inch LCD with Apple CarPlay and Android Auto, not a lot of other features, but you know, you can connect your phone, you do your thing..."
Android Auto lets you connect an Android phone to the car so you can use apps on the car’s screen. It’s designed to be safer and easier than juggling your phone while driving.
Android Auto is a smartphone-integration system that displays compatible Android phone apps on the car’s infotainment screen. It typically supports navigation, calls, messages, and music through a simplified, car-friendly interface.
Kia Soul
"If you compare it to like the Gen 1 Kia Soul, it falls into that same sort of category that, you know, the vehicle is here and accessible and can do, you know, anything you need it to, but nothing that you don't need it to."
The Kia Soul is a small, practical car that’s popular with people who want something easy to use day to day. The hosts are comparing the current vehicle they’re discussing to the Soul’s “simple but useful” vibe.
The Kia Soul is a compact, boxy hatchback/crossover-style vehicle known for being easy to live with and relatively affordable. In the segment, it’s used as a reference point for a “do everything you need, nothing you don’t” type of buyer and vehicle.
Honda Civic
"I actually can put my daughter behind me, which is something I can't do in like a Corolla hatchback... or, you know, Honda Civic is not, not exactly roomy."
The Honda Civic is a very common compact car. The host is using it as an example of a car that doesn’t feel as roomy in the back seat.
The Honda Civic is a mainstream compact car that’s often chosen for practicality and value. Here it’s mentioned as a comparison point for rear-seat room, with the host saying it’s not as roomy as the vehicle being discussed.
Corolla
"...which is something I can't do in like a Corolla hatchback... or even a regular Corolla or, you know, Honda Civic is not, not exactly roomy."
The Toyota Corolla is a popular compact car. They’re saying it doesn’t feel as roomy for fitting someone behind you compared with the vehicle they’re discussing.
The Toyota Corolla is a compact car line known for being practical and widely available. The host mentions it as a comparison for rear-seat space, arguing the other vehicle’s upright seating makes it easier to fit passengers behind the driver.
trunk
"You can put three, 24 inch roller bags in the trunk. It's not a slug..."
The trunk is the storage space in the back of the car for bags and cargo. They’re using it to show the car can fit real-world luggage.
The trunk is the rear cargo area used for carrying luggage and other items. The speaker uses trunk space (roller bags) to argue the vehicle is more practical than it looks.
1.6 liter
"We'll just take a turbo off a 1.6 liter and jam that under there."
“1.6 liter” is the size of the engine, based on how much space the cylinders have. Smaller engines can still feel strong when paired with a turbo.
“1.6 liter” refers to engine displacement, meaning the total volume of all cylinders combined. Smaller-displacement engines are often used with turbocharging to achieve power levels closer to larger engines.
Nissan Rogue
"It makes 121 horsepower, eight and a half seconds to a sixties like Nissan Rogue speed. So, you know, not bad considering Rogue is only a hair quicker than the QX or any hair slower than the QX 65."
The Nissan Rogue is a common small SUV. They’re comparing how fast the two vehicles feel and also pointing out that the Rogue costs more in many versions.
The Nissan Rogue is a popular compact crossover/SUV. The speaker compares acceleration performance (0–60 time) of the vehicle they’re discussing to the Rogue’s speed, and then notes pricing differences across Rogue trims.
0 to 60
"It makes 121 horsepower, eight and a half seconds to a sixties like Nissan Rogue speed."
“0 to 60” measures how quickly a car speeds up from a standstill to 60 mph. Lower time usually means quicker acceleration.
“0 to 60” is shorthand for how long it takes a car to accelerate from 0 mph to 60 mph. It’s a common way to compare real-world acceleration between vehicles.
CR-V
"It was that thing that was super duper cheap, but almost had the practicality of a CR-V RAV4 at a price tag half as high. Yeah."
The Honda CR-V is a common, practical SUV. They’re comparing the Kia Soul to it, saying the Soul felt almost as useful, but cost a lot less.
The Honda CR-V is a popular compact SUV used here as a benchmark for practicality. The hosts are saying the Kia Soul was “almost” as practical as a CR-V, but at a much lower price.
RAV4
"It was that thing that was super duper cheap, but almost had the practicality of a CR-V RAV4 at a price tag half as high. Yeah."
The Toyota RAV4 is a very common, practical SUV. The hosts are using it as an example of practicality, saying the Soul was cheaper but still felt useful.
The Toyota RAV4 is a mainstream compact SUV known for being practical and widely owned. In this segment, it’s used as another reference point to describe how the Kia Soul could feel practical despite being much cheaper.
meta factories
"And I've been through a couple of factories. And I think like the biggest juxtaposition is what they're doing at the meta factories, they call it for Hyundai. And then Ford's truck plant out in Dearborn, I think it was."
“Meta factories” is a term for Hyundai’s idea of factories that are run more by automation and robots than by people. The point here is that the production process is heavily controlled by machines.
“Meta factories” refers to Hyundai’s concept of highly automated, digitally controlled manufacturing facilities. The hosts contrast this with more traditional plants where humans are actively moving around and working on vehicles.
Ford
"And then Ford's truck plant out in Dearborn, I think it was. And just going, oh boy, there are people in and out of these trucks driving around and doing whatever. And then Hyundai is like, oh yeah, people don't get in these ever."
Ford is the company being mentioned here, specifically in relation to a truck factory. The hosts are comparing Ford’s more human-involved plant to Hyundai’s more robot-controlled setup.
Ford is referenced as the operator of a truck manufacturing plant in Dearborn. The hosts use Ford’s plant as a contrast to Hyundai’s more automated approach.
Spot
"And it does, you know, until it's on its way out the door, it's been guided by Spot, their little robot dog. So yeah, just interesting."
Spot is a small four-legged robot. Here it’s mentioned as part of the tech that helps gather information or guide operations before the self-driving cars are put into service.
Spot is a quadruped (four-legged) robot used for tasks like mapping, inspection, and data collection. The hosts mention it as part of how autonomous systems are guided or supported before vehicles are deployed.
Hyundai Ioniq 5
"But you know what else they're doing is they are cranking up the IONIQ 5 production for people other than Hyundai... But those IONIQ 5s are not coming from that factory. They're coming from over in Korea with their own suite of sensors and hardware and computing on board... But more IONIQ 5s out on the road."
The IONIQ 5 is a Hyundai electric car. Here, they’re talking about using it as the base vehicle for self-driving programs, where extra sensors and computers get added before it’s used in a robotaxi fleet.
The Hyundai IONIQ 5 is an electric vehicle (EV) that’s become a popular choice partly because it’s well-suited to being used as a platform for autonomous-driving fleets. In this segment, the hosts discuss how IONIQ 5 production is being scaled and how specific sensor/compute setups are added before the cars enter the Waymo fleet.
Waymo
"So yeah, just interesting. But you know what else they're doing is they are cranking up the IONIQ 5 production for people other than Hyundai... So the new Waymos are going to be Hyundai's... Then it goes out into the Waymo fleet."
Waymo is a company that runs self-driving cars (robotaxis). They’re describing how cars get modified with extra equipment and then used in Waymo’s service.
Waymo is the autonomous-driving company that operates robotaxi services. In this segment, the hosts explain that IONIQ 5 vehicles are shipped out after sensors are installed and then deployed into the Waymo fleet.
Motional
"But Hyundai is doing their own, I want to say it's called Motional... And that is going to be right now exclusively for Las Vegas."
Motional is a self-driving tech company connected to Hyundai’s autonomous plans. In this segment, they mention it because the self-driving service is limited to Las Vegas right now.
Motional is an autonomous-driving company associated with Hyundai’s self-driving efforts in the U.S. The hosts say Hyundai is working with Motional and that the autonomous vehicles are being deployed exclusively in Las Vegas at the time of the discussion.
fully autonomous vehicles
"But that's Hyundai dipping their toes in here in the US with their fully autonomous vehicles. But more IONIQ 5s out on the road."
Fully autonomous vehicles are self-driving cars that handle the driving themselves. The hosts are saying Hyundai is starting to bring that tech to the U.S.
Fully autonomous vehicles are cars that can perform the driving task end-to-end without a human driver actively controlling steering, braking, or acceleration. In this segment, the hosts frame Hyundai’s U.S. rollout as an entry point for this kind of self-driving operation.
Rivian R1T
"Essentially, current owner of an R1T and for the next vehicle trying to side between the Rivian R2 and the BMW IX3, the upcoming IX3."
The Rivian R1T is Rivian’s electric pickup. The hosts mention it because the listener already owns one and is comparing what to buy next.
The Rivian R1T is an all-electric pickup truck built on a purpose-designed EV platform. In this episode, it’s used as the baseline for an owner considering the newer Rivian R2.
Gmc Sierra
"And before we dive into this one, let me just say I spent a week in a GMC Sierra EV last week and I kind of liked it somehow."
The GMC Sierra EV is an electric version of the Sierra truck. The host drove one for a week and uses it to explain what feels different about EV trucks designed from the start as EVs.
The GMC Sierra EV is the truck the host spent a week driving, and it becomes a key comparison point in the discussion. The episode highlights its “clean sheet” EV design approach and how that affects packaging and day-to-day usability.
clean sheet design
"It reminded me a little bit of the R1T in that it was a clean sheet design, which we have so far not seen really in the truck space so much."
A “clean sheet design” means the car was designed from scratch, not just modified from an older gas model. That can help EVs fit the battery and other EV-specific features more efficiently.
A “clean sheet design” means the vehicle is engineered from the ground up for its intended purpose, rather than adapting an existing platform. In EV trucks, that often enables better packaging for batteries and unique features because engineers aren’t constrained by older gas-engine layouts.
gear tunnel
"I mean, with Rivian with the gear tunnel and wanting to do power integrated TANU covers and an air suspension and be more of an adventure pickup truck in that segment."
A gear tunnel is a built-in storage space shaped like a tunnel for carrying gear. It’s a design feature that helps keep outdoor equipment organized.
A gear tunnel is a dedicated internal storage channel/tunnel in some EV trucks that runs through the cabin or bed area. It’s used to organize and secure adventure gear, and it’s often enabled by EV packaging choices.
air suspension
"I mean, with Rivian with the gear tunnel and wanting to do power integrated TANU covers and an air suspension and be more of an adventure pickup truck in that segment."
Air suspension uses air bags instead of regular springs. It can raise or lower the truck to make it easier to drive and easier to load gear.
Air suspension uses air-filled springs instead of traditional steel springs, allowing the vehicle to adjust ride height. That can improve comfort, help with loading/unloading, and provide better ground clearance when needed.
Ford F150
"With some caveats, I guess the front trunk, kind of small but handy. The one in the lightning is bigger, but then lightning has so many compromises on the inside, on the EV side of things, because of that desire to make it compatible with the body on frame structure of the regular F-150. So it doesn't have a transmission, but it has a transmission tunnel."
The Ford F-150 is a large pickup truck used for hauling, towing, and everyday driving. Some versions have extra storage areas, including a front trunk. The podcast is pointing out that the electric version changes the interior and storage trade-offs.
The Ford F-150 is a full-size pickup truck, commonly chosen for work and towing capability. The podcast mentions practical storage details like the front trunk area, and compares it to the electric F-150 Lightning’s different packaging. That kind of talk matters because storage and interior compromises can affect daily usability.
transmission tunnel
"So it doesn't have a transmission, but it has a transmission tunnel."
A transmission tunnel is a hump or channel in the floor that’s there to make room for drivetrain parts. In some EVs, you may still see a tunnel-like shape even if the layout isn’t the same as a gas car.
A transmission tunnel is a raised channel in the floor that houses the drivetrain components. Even though the host says the EV “doesn’t have a transmission,” the tunnel can still exist to package other powertrain parts, wiring, or cooling hardware.
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