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To become a 'Foxconn' of automotive is really an interesting idea. The model of designing a vehicle might have to become more constrained which cuts right into

by Dwolb 11y ago

To become a 'Foxconn' of automotive is really an interesting idea. The model of designing a vehicle might have to become more constrained which cuts right into the core of the automotive industry's design processes and car model portfolios. They're trying as hard as possible to horizontally differentiate from the competition and vertically differentiaite to access more segments. A billion dollar plant isn't really novel for the car industry - that's what it costs to bring a new facility for a model or family of models online. I think the missing link to do what you're describing (a 'flow shop' that can be very rapidly reconfigured to act like a 'job shop') would take an order of magnitude or two more investment which, given the automotive industry's single-digit profit margins, may be too risky for the incumbents. I've heard of Tesla trying to do this, but not without major difficulty (no one has ever scaled this while simultaneously building a brand new company and car and distribution network and being at the forefront of aluminum body components, etc.)

ctdonath 11y ago
Thing is, there really isn't that much differentiation between automobile models. Everything out there is basically a sedan, SUV, or pickup truck (even the Jeep Wrangler is being forced, kicking & screaming, into the SUV form) with little meaningful difference between variants. In "trying as hard as possible to horizontally differentiate from the competition and vertically differentiate to access more segments", manufacturers are trying really hard to make car-making as hard & difficult & expensive as possible. So back to basics: it's not that hard, it's a well-understood process with a robust supply chain ... an industry ripe for one company to arise focusing on turning designs into vehicles, without the additional overhead of design & marketing. Insofar as the "flow shop" for car manufacturing "would take an order of magnitude or more investment", well, we all know one company that does have that kind of cash (!) lying around, and the interest in re-inventing the automotive industry.
- burgreblast 11y ago
  > manufacturers are trying really hard to make car-making as > hard & difficult & expensive as possible. I think you may be under-estimating the complexities market. In fact, the cheapest models in a give product are often the highest volume. So you have to deliver maximum value in each price segment. It's not solely about price: The last brand to compete primarily on low-price was Yugo. How'd that turn out? Also, if marketing is so non-essential, why does Google make any money? For that matter, how many non-free [choose your industry, including software] companies don't use paid-for marketing?

by Dwolb 11y ago

ctdonath 11y ago

Thing is, there really isn't that much differentiation between automobile models. Everything out there is basically a sedan, SUV, or pickup truck (even the Jeep Wrangler is being forced, kicking & screaming, into the SUV form) with little meaningful difference between variants. In "trying as hard as possible to horizontally differentiate from the competition and vertically differentiate to access more segments", manufacturers are trying really hard to make car-making as hard & difficult & expensive as possible. So back to basics: it's not that hard, it's a well-understood process with a robust supply chain ... an industry ripe for one company to arise focusing on turning designs into vehicles, without the additional overhead of design & marketing. Insofar as the "flow shop" for car manufacturing "would take an order of magnitude or more investment", well, we all know one company that does have that kind of cash (!) lying around, and the interest in re-inventing the automotive industry.

burgreblast 11y ago
> manufacturers are trying really hard to make car-making as > hard & difficult & expensive as possible. I think you may be under-estimating the complexities market. In fact, the cheapest models in a give product are often the highest volume. So you have to deliver maximum value in each price segment. It's not solely about price: The last brand to compete primarily on low-price was Yugo. How'd that turn out? Also, if marketing is so non-essential, why does Google make any money? For that matter, how many non-free [choose your industry, including software] companies don't use paid-for marketing?