'US Is Currently Sc***ed:' Ex-Cruise CEO Calls For Manufacturing Makeover To Win Over Chinese Auto Rivals 'Because Tariffs Won't Get Us Out Of This Rut'

Kyle Vogt, formerly the CEO of GM‘s self-driving car unit Cruise, took to social media to express his views on U.S. manufacturing costs and called for prioritizing automation and efficiency.

What Happened: “The U.S. is currently screwed,” Kyle Vogt wrote on X, formerly Twitter. “Good companies know they can’t succeed w/o leveraging low-cost mfg elsewhere. Tariffs won’t get us out of this rut.”

Vogt emphasized the importance of prioritizing efficiency, automation, and advancements in the manufacturing process.

He stepped down from the company in November after one of its autonomous vehicles got involved in an accident in San Francisco in October. 

Costs & Competition: U.S. companies, particularly automakers, have voiced concerns over the past year regarding Chinese companies entering the U.S. market. 

These companies argue that due to lower manufacturing costs in China, Chinese EVs will be priced more competitively, threatening domestic manufacturers.

Additionally, there are worries about Chinese companies potentially establishing factories in Mexico to gain a foothold in the U.S. market while avoiding high tariffs on direct Chinese imports.

Earlier this year, Elon Musk, CEO of U.S. electric vehicle giant Tesla Inc., echoed these concerns regarding competition from China. He stated, “Frankly, I think if there are no trade barriers established, they will pretty much demolish most other car companies in the world.”

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