Beijing time on April 1 news, in order to compete with Tesla, automakers are racing to develop models powered by batteries and software. Now, they are facing a new challenge: which technologies need to be produced in-house and which need to continue to be sourced from suppliers.
▲ Model Y delivered by Tesla’s Berlin factory
Vertical integration through increased in-house manufacturing represents a major shift for most global automakers. For decades, they have relied on suppliers to produce critical components, develop software and manage vast manufacturing networks in low-income countries.
Still, some established automakers are making major changes to their long-standing make-or-buy calculations. One reason is the success of Tesla’s electric vehicles, which rely on proprietary technology the company has developed and built in-house; another is the financial damage caused by supply chain disruptions during the COVID-19 pandemic.
“The most important thing is our vertical integration,” said Ford CEO Jim Farley. (Ford founder) Henry Ford was right.” He said the company must change its early-stage EV strategy to buy off-the-shelf components. Ford’s goal now is to control the supply chain “all the way down to the mines where battery material is produced.” In addition, Volkswagen, General Motors and Mercedes-Benz are also pursuing similar self-manufacturing strategies.
.
[related_posts_by_tax taxonomies=”post_tag”]
The post To build or to buy, Tesla has successfully made the auto giant rethink the supply chain – yqqlm appeared first on Gamingsym.