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The problem is that the drive-train is what car companies see as their "core competency" and have focused their energy and talents on doing that and out-sourcin

The problem is that the drive-train is what car companies see as their "core competency" and have focused their energy and talents on doing that and out-sourcing the rest. Maybe they can make switch to "car making factories" as the core competency (Elon Musk says Tesla is focusing on "making the machine that makes the machine"). Not a huge switch, but those top engineers, passionate car guys at Mercedes, might not be as interested or as capable as factory automation engineers.

monkmartinez 9y ago
Do you really think so? In my mind it doesn't matter that part manufacture is outsourced. I don't think design has been outsourced and if it has, they just give them new specs/targets to meet.
hacknat 9y ago
This is false, there are probably something like 500 engineers within Mercedes that specialize in engineering the internal combustion and drive train, and most of them work in at Mercedes AMG, which will never go away for the sheer marketing it brings. I think the grand-parent comment is vastly overestimating how much of the car business these days is based on tuning the internal combustion engine, which for the most part has seen about all of the advances it is going to see. The rock stars of the car world are now the process and manufacturing guys (and possibly the software guys, though not as much as you'd hope or expect), who still have the power to squeeze the margins tighter than any other engineering division does, and provide more competitive advantage than any other engineering division does. rant Electric motors are commodity items that can easily be thrown onto most chassis. Why does Elon Musk always make such a big deal about not having patents? Mostly because he doesn't have any sexy patents to trot out anyways so its good PR fluff. end rant I think Tesla can survive and thrive, and break the 100 year drought in new car companies, but I think it's a mistake to think that's because they are going to out maneuver car companies at the car game, it's because they are becoming battery experts that they'll win. Tesla is a battery company with a car division.
justin66 9y ago
Manufacturers use other companies' powerplants all the time, so I don't know if I'd characterize it as a core competency. It's even easier to do with electric motors, if anyone is selling. They've been a partner of Tesla in the past...

monkmartinez 9y ago

Do you really think so? In my mind it doesn't matter that part manufacture is outsourced. I don't think design has been outsourced and if it has, they just give them new specs/targets to meet.

hacknat 9y ago

This is false, there are probably something like 500 engineers within Mercedes that specialize in engineering the internal combustion and drive train, and most of them work in at Mercedes AMG, which will never go away for the sheer marketing it brings. I think the grand-parent comment is vastly overestimating how much of the car business these days is based on tuning the internal combustion engine, which for the most part has seen about all of the advances it is going to see. The rock stars of the car world are now the process and manufacturing guys (and possibly the software guys, though not as much as you'd hope or expect), who still have the power to squeeze the margins tighter than any other engineering division does, and provide more competitive advantage than any other engineering division does. rant Electric motors are commodity items that can easily be thrown onto most chassis. Why does Elon Musk always make such a big deal about not having patents? Mostly because he doesn't have any sexy patents to trot out anyways so its good PR fluff. end rant I think Tesla can survive and thrive, and break the 100 year drought in new car companies, but I think it's a mistake to think that's because they are going to out maneuver car companies at the car game, it's because they are becoming battery experts that they'll win. Tesla is a battery company with a car division.

justin66 9y ago

Manufacturers use other companies' powerplants all the time, so I don't know if I'd characterize it as a core competency. It's even easier to do with electric motors, if anyone is selling. They've been a partner of Tesla in the past...