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Yes. Auto makers don't build cars all by themselves in one single factory. There is a huge supply chain. So initially supplier 'A' may create a non-standard it
by seshagiric 10y ago
Yes. Auto makers don't build cars all by themselves in one single factory. There is a huge supply chain.
So initially supplier 'A' may create a non-standard item for a new niche car. Eventually they make it available for other cars too. As more and more manufacturers pick up the 'new item' for their cars, the cost of manufacturing starts coming down as economy of scale kicks in.
The above is just one example, my point is that non-standard items cost high to manufacture, and as others start to improvise/ replicate the cost starts to come down.