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Why Chinese Cars Won't Be That Affordable: Ep 123

Why Chinese Cars Won't Be That Affordable: Ep 123

The AutoGuide Show May 25, 2026 35 min
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About this episode

Chinese car prices don’t translate cleanly to the U.S. and Canada, the hosts say—China-market numbers don’t match other regions, and currency translation is misleading. They connect higher costs to safety rules, shipping, and tariffs, plus the economics of selling low-profit “entry” models. Even if Chinese brands gain share with aggressive pricing, the hosts raise questions about long-term quality, service/repair, and direct-to-consumer bottlenecks. The conversation also touches on how mainstream “basic” cars already include tech.

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Technical Too Afraid to Ask
Concept

safety regulations have to be followed because they are different

"And I wonder that $15,000 car that's sold in Mexico, will it be that in Canada and the US once our safety regulations have to be followed because they are different?"

Car rules aren’t identical in every country. If a car has to be redesigned or re-certified to meet local safety standards, it can cost more—so the price can’t always stay the same.

Car

Audi sedan, the A5

"if you look at something like a basic Audi sedan, the A5, it's more expensive, even though it's built over there, it is more expensive to buy that there than it is in the US."

The Audi A5 is a popular Audi model. The host is using it to show that European cars can still cost more in Europe than in the US, even if they’re made there.

Concept

tariffs

"we are, you are seeing this with the tariffs, this increase in manufacturing capacity is being [502.0s] used more."

Tariffs are extra taxes the government adds to imported products. The host is saying tariffs can change how car companies decide where to build cars.

Concept

manufacturing capacity

"we are, you are seeing this with the tariffs, this increase in manufacturing capacity is being [502.0s] used more."

Manufacturing capacity is basically how many cars a factory can build. The host is saying policy and demand changes can affect whether companies use that available production space.

Concept

excess capacity

"There was excess capacity that wasn't being used at a lot of places, so automakers like [507.3s] Nissan, for example, it's like, but we'll just build more rogues, you know, in this factory, and [512.0s] they can do that."

Excess capacity means a factory could build more cars than it’s building right now. If that unused space gets used, companies can produce more cars without starting from scratch.

Car

Nissan Rogue

"...for example, it's like, but we'll just build more rogues, you know, in this factory, and they can do that...."

The Nissan Rogue is a compact SUV meant for normal daily use. It’s built to be comfortable and easy to drive, with room for passengers and cargo. The podcast references it because more of them are being produced to meet demand.

Car

Nissan Versa

"So they, they canceled the models like the Nissan Versa, [533.9s] the Kia Soul."

The Nissan Versa is a budget-friendly small car. The host is saying automakers can’t keep selling very cheap models if they aren’t selling enough to cover costs and still make profit.

Concept

Econobox

"So if you only make a little bit of [552.1s] amount of money on a car like that, which is what they don't make much money, you need to sell a lot [556.9s] of them. And they weren't selling a lot. So the idea that that $15,000 Chinese car, it's not going [565.0s] to be a luxury vehicle, it is going to be an Econobox."

An Econobox is a cheap, basic car meant mainly to get you from point A to point B. The host is saying that if a car is priced around $15,000, people may still expect it to feel like more than just a bare-bones budget option.

Car

Hyundai Elantra

"And they're picking up the Hyundai Elantra a little more expensive. It's starting to, as we see this economy shift, they're starting to see sales pick up."

The Hyundai Elantra is a popular small car. The hosts bring it up because it costs a bit more than the very cheapest models, and they’re talking about which cars are selling better as prices and demand change.

Car

Kia Soul

"But those ones underneath the Hyundai Venue, the Kia Soul, they weren't, they weren't seeing that type of volume pick up."

The Kia Soul is a small, distinctive-looking car that’s often priced for value. The hosts mention it as another example of a model that didn’t sell more the way some competitors did.

Car

Hyundai Venue

"But those ones underneath the Hyundai Venue, the Kia Soul, they weren't, they weren't seeing that type of volume pick up."

The Hyundai Venue is a small SUV-style car. The hosts mention it to say some cheaper models didn’t get the same sales boost as others when the market changed.

Car

Ford F150

"Yeah. And that's always sort of been a thing where people say they want something affordable. And they go by loaded up by F-150 and get themselves upside down on a finance, which plagued our region forever. But you brought up an interesting point. And this next topic"

The Ford F-150 is a large pickup truck made by Ford. People buy it for work or everyday driving, and it comes in many versions with different features. It can be discussed in the context of how adding lots of options can make the monthly cost much higher.

Term

free trade

"And a lot of the Japanese manufacturers for us, because we essentially more or less have free trade with Japan and Korea and Canada. So we actually get models from there that are built in the States, because it's cheaper to ship them from Japan than to just take a truck up from the US."

Free trade refers to agreements that reduce or eliminate trade barriers (like tariffs and import restrictions) between countries. The hosts use it to explain why Canada can receive models built in the U.S. from Japan and Korea more easily than bringing in cars made in China.

Concept

massive disruption

"So maybe some of that would continue with the Chinese, but it would be a massive disruption if the domestics and even the import brands that are here, like the Koreans and Japanese lost sales and production as well."

“Disruption” means the market gets shaken up fast. The idea is that if Chinese brands sell a lot more cars, other brands could lose sales and have to cut back production.

Brand

Koreans

"So maybe some of that would continue with the Chinese, but it would be a massive disruption if the domestics and even the import brands that are here, like the Koreans and Japanese lost sales and production as well."

They mean South Korean car companies. The point is that if Chinese brands sell more cars, other foreign brands could lose sales too.

Brand

Japanese

"So maybe some of that would continue with the Chinese, but it would be a massive disruption if the domestics and even the import brands that are here, like the Koreans and Japanese lost sales and production as well."

They mean Japanese car companies. The claim is that Chinese brands taking market share could hurt Japanese brands’ sales and production plans too.

Brand

Volkswagen's

"Yes, manufacturers at the time, the Chinese have been building cars now for a while and they learned so much from Volkswagen's, the BS companies that came in and helped them."

They’re saying Chinese car companies learned a lot from Volkswagen—like how to build cars more effectively. It’s used as an example of outside help speeding up progress.

Concept

long-term quality

"I do think there are questions on long-term quality. There's going to be a lot of questions on service and repair situations and how well they treat"

They’re talking about whether cars stay good after you’ve owned them for a while. Even if a car seems fine at first, the real test is whether it lasts and keeps working reliably over years.

Concept

service and repair situations

"I do think there are questions on long-term quality. There's going to be a lot of questions on service and repair situations and how well they treat"

They mean how easy it is to get the car fixed when something breaks. If a brand doesn’t have good service support and parts, repairs can take longer and cost more.

Topic

dealer network

"customers. It is a huge sore spot for any automaker that has, you know, service through a dealer here ... Will they go with that dealer network and rely on that and understand the importance of that?"

A dealer network is the set of local car dealerships that sell cars and handle repairs. If something goes wrong, the dealership is usually who fixes it. The question here is whether Chinese brands will rely on dealerships or try a different sales model.

Concept

direct-to-consumer route

"Or will they go a direct-to-consumer route, which will be hard to get through our political system, as some of the EV brands know. And the problem with direct-to-consumer is also on that service side..."

Direct-to-consumer means the company sells the car straight to you, instead of using regular car dealerships. That can be harder because laws and rules vary by location. Even if sales are direct, you still need places to service and repair the cars.

Car

Tesla

"where it is a huge bottleneck even on the Tesla at this stage of Tesla's lifespan to fix and repair and maintain their vehicles..."

Tesla is mentioned as an example of an electric car brand that sells directly to customers. The hosts say that even Tesla can struggle with service and repairs becoming a bottleneck. They use that as a warning that direct sales don’t automatically solve maintenance.

Car

Hyundai Palisade Calligraphy

"I was just in a Palisade calligraphy yesterday. ... it is $60,000. But ... it's got like a leather wrapped dashboard. It's got like the soft headliner. It's got all, I mean, it is, it is as quiet as any Lexus..."

The Hyundai Palisade Calligraphy is the nicer, higher-end version of Hyundai’s big family SUV. The hosts point out that it feels more luxurious inside—materials and a quiet ride—than you’d expect for the price. They use it to compare against what BYD is offering now.

Car

Lotus Excel

"...w, SUV. If you had shown someone that next to the Excel or whatever it was when they did, when the first ..."

The Lotus Excel is an older sports car made by Lotus. It was designed for fast, comfortable driving over longer distances. The podcast mentions it because it’s part of Lotus history and helps explain how later models were compared.

Car

Hyundai Excel

"If you had shown someone that next to the Excel ... you wouldn't believe it was the same company, right?"

The Hyundai Excel is an older Hyundai model that the hosts mention as the “before” example. They’re using it to show how much Hyundai’s cars have improved in quality and comfort since then. The point is the big change in how the brand feels today.

Brand

BYD

"So where BYD is now is much closer to the calligraphy, you know, Palisade than it is to the Excel for sure."

BYD is a Chinese car company. The hosts are saying BYD’s newer cars feel much more “luxury-like” than you might expect, based on how they compare it to a high-end Hyundai SUV. It’s used to support their argument about how fast Chinese brands are improving.

Car

Kia Sportage

"They'd been in the US for a couple of years with the original on Sportage. And I can remember their sedan, but the Rio,"

Kia’s Sportage is a popular SUV model. The host is basically saying Kia used to be new in Canada, and people noticed the cars were different from what they expected.

Car

Kia Rio

"And I can remember their sedan, but the Rio, the very first Rio we got, and I worked rental cars and we got them there. So it was the old one Rio. And I remember driving that and thinking, what is this thing?"

The Kia Rio is a small, budget-friendly car line from Kia. The host is saying the early Rio felt confusing or unimpressive, but Kia has improved a lot since then.

Term

EVs

"And now, like the keys are fantastic, especially the EVs. So 20 years, it changed quick."

EVs are cars that run on electricity stored in a battery. The host is saying the EV experience has gotten much better compared to earlier days.

Term

CVT

"I mean, you know, when you talk about the Japanese and introducing a CVT transmission, you know, at the time, if you drive in Japan, if you've been there, everyone drives at a very steady pace, right?"

A CVT is a type of automatic transmission that changes ratios smoothly rather than shifting gears like a traditional automatic. The host is saying that how people drive (calm vs aggressive) can make a CVT feel great or annoying.

Term

Hemmies

"we just saw the swing going back to people wanting, you know, the Hemmys and, you know, the complete swing away from the EV ethos"

“Hemmies” refers to a famous type of V8 engine used by some Chrysler cars. The host is saying people are starting to want big, powerful gas engines again.

Concept

EV ethos

"we just saw the swing going back to people wanting, you know, the Hemmys and, you know, the complete swing away from the EV ethos and like, no, give me the big, the biggest thing"

“EV ethos” means the overall attitude that electric cars are the direction to go. The host is saying some buyers are moving away from that and wanting bigger gas engines instead.

Term

12 seconds to get to 60 miles an hour

"And so, you know, the little $15,000 car I mentioned, I think it has like less than 120 horsepower. It takes 12 seconds to get to 60 miles an hour, which I don't think..."

This is a simple test of how fast a car accelerates from a stop to 60 mph. The lower the number of seconds, the quicker the car feels when you press the gas.

Term

horsepower

"And so, you know, the little $15,000 car I mentioned, I think it has like less than 120 horsepower. It takes 12 seconds to get to 60 miles an hour..."

Horsepower is a number that roughly describes how strong a car’s engine is. Higher horsepower usually helps a car accelerate faster, which is why the host mentions it when comparing cheap cars.

Term

screens

"And today's basic cars, like from a Nissan or a Hyundai or Kia, they have screens. They've got the full screens and everyone sees the expensive Chinese cars with lots of screens."

“Screens” are the dashboard displays and infotainment screens you touch to control things like navigation and media. The host is arguing that even cheaper cars now tend to include them.

Term

analog gauges

"But that $15,000 one has analog gauges, doesn't have any of the tech, doesn't, you know, it is bare. And those cars don't exist in the US anymore."

Analog gauges are the classic dashboard dials with needles. The host is saying that cheaper cars may still use these instead of newer digital screens and tech features.

Term

bare bone cars

"And so people say, oh, that's what we want. I beg to differ. So I think what you're seeing really in these, like if you take a Chevy Trax..."

“Bare-bones” means a car with very few features. The host is saying that in the U.S., buyers don’t really get (or want) the super-minimal versions anymore.

Car

Chevrolet Trax

"So, you know, it's, I think the expectation of an American consumer, as much as they might be saying they want this one thing, they don't, what they're thinking of bare bones is not what it will really be. Yeah, the Trax is a fantastic value for them. I've spent a lot of time, but I agree..."

The Chevy Trax is a small, budget crossover. The host is using it as an example that even cheaper cars today usually include modern tech, not the old-school “bare minimum” setup people imagine.

Term

rear suspension setups

"And the Hyundai's too. And their rear suspension setups were so strange for our roads. And when you hit bumps, they would squirm side to side."

This means the parts and tuning that help the back wheels handle bumps. If it’s set up for smoother roads, it can feel wobbly or unstable on rough roads.

Term

expansion gaps

"But over here, our roads are terrible. And you have expansion gaps and puddle. And yeah, it's just a small learning curve..."

Expansion gaps are the intentional seams in roads and bridges that allow pavement to expand and contract with temperature changes. The host notes that these features, along with potholes/rough surfaces, can excite suspension movement and reveal tuning weaknesses.

Concept

learning curve

"And yeah, it's just a small learning curve where even with testing, they still didn't, well, when this car is 50,000 miles on it, and someone's driving in Michigan, what's it going to be like?"

The host means it takes time for a brand to figure out how its cars behave on local roads. Even if they test first, real driving over time can show issues they didn’t fully predict.

Topic

US MCA negotiation

"And, you know, the next few years, we've got to figure out the US MCA negotiation. I think that will be really interesting."
Term

pickup trucks

"when you talk about markets, like the only other market for like pickup trucks, like the light duties that that make, you know, the domestics of the US so profitable is Canada."

Pickup trucks are the common North American work/utility vehicles with an open cargo bed. The host is saying this segment matters a lot for how profitable certain automakers can be.

Car

Ford Mustang

"...w. I don't know if they're still in business. The Mustang doesn't sell like it used to. So those are sort o..."

The Ford Mustang is a sports car from Ford. It’s known for being fun to drive and for its classic look. The podcast brings it up because sales and interest may not be as strong as in the past.

Car

Jeep Wrangler

"...butter right now. And I mean, every domestic Jeep Wrangler, like you can name one or two models that that's ..."

The Jeep Wrangler is an SUV built for off-road driving. Many versions can have the roof and doors removed, which makes it feel more open-air. The podcast mentions it because it’s a very common model people talk about and buy.

Brand

Chemical Guys Tire and Trim Gel High Gloss Restore and Protectant

"Okay, so it is time for the product review and today's product is Chemical Guys Tire and Trim Gel High Gloss Restore and Protectant. A lot of words and basically what I am discussing or reviewing is a gel you use to get all those plastic bits on the outside of your car and the rubber bits and your tires to shine like new."

Chemical Guys is a detailing brand that sells products for cleaning and protecting a car’s exterior. This particular gel is meant to make faded plastic trim and tires look dark and shiny again, while also adding some protection.

Car

2014 Subaru Forester XT

"Now again, I am using my well used, well aged 2014 Subaru Forester XT as the test bed and with over 150,000 miles through salt and all sorts of other debris that a north wet or northeast winter brings with it."

This is a 2014 Subaru Forester XT, a Subaru SUV with a more powerful “XT” trim. The host uses it as their real-world test car to show how a product can make the exterior trim and tires look less faded after winter road salt and grime.

Term

test bed

"Now again, I am using my well used, well aged 2014 Subaru Forester XT as the test bed and with over 150,000 miles through salt and all sorts of other debris that a north wet or northeast winter brings with it."

A “test bed” just means the car they use to try the product and see how it turns out. In this case, it’s their own Forester that’s been through winter grime to judge the results.

Term

microfiber

"So I use this gel and applying it is super simple using the microfiber sort of spongy cloths that you can buy as well."

Microfiber is a soft cleaning cloth material commonly used for car detailing. It helps you apply products smoothly without scratching the trim or paint.

Term

linear horizontal strokes

"You just put a bit on there and just using linear horizontal strokes on the trim bits that you want to restore. You spread it out and it's crazy how instantly it absorbs into the material..."

This is just the way the host applies the gel—by rubbing it on in straight, even lines. The goal is to spread it smoothly so it doesn’t look blotchy or streaky.

Brand

Chemical Guys Tire and Trim Gel High Glosser Store and Protected

"so yes I recommend Chemical Guys Tire and Trim Gel High Glosser Store and Protected. We'll take another quick break and we'll be back with the mailbag."

Chemical Guys is a car-care brand. This particular gel is meant to make tires and exterior plastic trim look darker and shinier again, but it may need redoing later.

Car

Dodge Ram Rumblebee

"Okay so going to our mailbag we had a reader who saw our post on the new Dodge Ram Rumblebee and they wanted to know is this a all-new truck or a sub-brand or what is it?"

The Dodge Ram Rumblebee is a special version of a Ram pickup. It’s meant to look and feel more performance-oriented, with styling cues like a widebody look and hood scoops.

Car

Ram 1500

"Now I believe the regular 5.7 liter Hemi V8 will be available on a regular Ram 1500 but if you want a performance truck well the Rumblebee..."

The Ram 1500 is a common full-size pickup model. Here it’s mentioned as the regular truck that could get the 5.7-liter Hemi V8.

Term

Hemi V8

"Now I believe the regular 5.7 liter Hemi V8 will be available on a regular Ram 1500"

A “Hemi V8” is a V8 engine design from Chrysler/Dodge with a combustion chamber shape meant to burn fuel efficiently. In this segment, it’s the engine option being discussed for the Ram lineup.

Term

wide body

"if you want a performance truck well the Rumblebee with its wide body TRX like inspiration and hood scoops and all the the go-fast bits"

“Wide body” means the vehicle’s fenders are made wider. It usually helps fit wider tires and makes the truck look more aggressive.

Car

TRX

"if you want a performance truck well the Rumblebee with its wide body TRX like inspiration and hood scoops and all the the go-fast bits"

TRX is Ram’s high-performance truck branding. They’re saying the Rumblebee will borrow some of that look, like the widebody style and hood scoops.

Term

go-fast bits

"and hood scoops and all the the go-fast bits this is the street truck the the sport truck"

“Go-fast bits” just means the parts that make a truck feel more performance-focused. In this context, it’s describing the Rumblebee’s sporty, performance-style upgrades.

Term

hood scoops

"and hood scoops and all the the go-fast bits this is the street truck the the sport truck"

Hood scoops are raised openings on the hood. They can help bring more air to the engine area, and they also signal a performance look.

Term

V8

"amazing considering the Ram didn't have a V8 last year and now it has three so you can get the 5.7 ... V8 which is available in other trims as well"

A V8 is an engine with eight cylinders. More cylinders usually means more power potential, and the host is saying Ram is adding V8 options to make the truck quicker.

Term

6.4 liter V8

"there will now be the 6.4 liter V8 the 392 that's been available in many other products wasn't in the Ram previously"

“6.4 liter” is the engine’s size. In this discussion, the bigger 6.4L V8 is presented as the reason the truck gets quicker than the smaller engine.

Term

supercharged Hellcat engine

"optional engine which is the 6.2 liter supercharged Hellcat engine ... in this version it makes 777 horsepower"

A supercharged engine uses a device that pushes extra air into the engine. More air lets it make more power, and the host is saying this Hellcat setup is what makes the Rumble Bee so fast.

Car

Challenger Hellcat

"...tional engine which is the 6.2 liter supercharged Hellcat engine although I don't really know if they're ca..."

The Challenger is a muscle car from Dodge. The podcast mentions a very powerful version that uses a large 6.2-liter supercharged engine. It’s included because it represents the top end of what the Challenger can be.

Term

zero to 60

"it makes 777 horsepower which is way more than it used to make the ridiculous stats on this truck with that engine are zero to 60 miles an hour in 3.4 seconds"

“Zero to 60” measures how fast a car can go from standing still to 60 mph. The quicker the number, the faster the truck is accelerating.

Term

quarter mile

"then if you get the 392 the 6.4 you're down to 5.2 seconds and a 13.2 quarter mile and then of course ... 11.6"

The quarter mile is a drag-racing measurement of how fast a car can cover 1/4 mile. Faster quarter-mile times generally mean stronger acceleration and top-end pull.

Term

top speed

"it's quoted as having a top speed they hope for 170 miles an hour in a truck I mean legally you can't but even on a track it's obviously for bragging rights"

Top speed is the highest speed the vehicle can reach. The host is basically saying it’s mostly for bragging, because it’s not something you can safely or legally do in normal driving.

Car

Ram Rumble Bee

"of these new rumble bees or SRT whatever they're officially called I think it is SRT rumble bee ... that supercharged 777 horsepower"

The Ram Rumble Bee is a special performance version of a Ram pickup. It’s the supercharged, high-horsepower model in the lineup, and the host is saying it’s meant to be very quick—almost like a drag car.

Term

SRT

"or SRT whatever they're officially called I think it is SRT rumble bee"

SRT is a label for the more performance-focused versions of certain vehicles. The host is saying the Rumble Bee is officially tied to that performance branding.

Term

fat tired

"their wide body low stance fat tired"

“Fat tires” means wider tires. Wider tires can help with traction, and they also make the truck look more aggressive.

Term

low stance

"they're gonna be pretty unmistakable their wide body low stance fat tired"

“Low stance” means the truck sits lower to the ground than normal. It’s often done with suspension changes and gives a sportier look.

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