Because there's no incentive to. The invisible hand of the free market only encourages a race to the bottom when the incentives are aligned. With the ridiculously high capex required to become an automaker these days, why would someone come in, just to make $3,000 per car, in a saturated market, chock full of regulations, to make money on the bottom end of a market where existing manufacturers can easily just undercut you the second you get any traction in the market.
Manufacturers make more money off selling luxury cars. The poors can just buy used luxury cars for all they care. We see the same problem with housing and luxury vs spartan options. The spartan option exists, but only begrudgingly so.
Manufacturers make more money off selling luxury cars. The poors can just buy used luxury cars for all they care. We see the same problem with housing and luxury vs spartan options. The spartan option exists, but only begrudgingly so.