I think a lot of the cost comes from minimum safety standards that didn't exist before. I don't think there's that much margin to lower car prices (apart from the dealer price hikes from covid/chipageddon)
In Japan you can get a brand new Suzuki Alto for $8000. And it even has a 7-inch touch screen with CarPlay support. But you wouldn't want to get into a crash with one of those on a U.S. highway.
Amazing. In real terms, entry-level cars have doubled in price. We could use a new Henry Ford.