Refusal of the Big Three to Adopt Vertical Integration

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RIP_OPEC

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#1
In the pic below, is the upcoming Cruise AV. I've noticed that all of these supposedly fully autonomous "Tesla Killers" are quite unsightly. It seems GM thinks it can win the race by slapping on as many sensors as possible and outsource everything instead of adopting the vertical integration strategy like Tesla. It's as clear as night and day that those oversized sensors on the top and mirrors were not specifically designed for the Cruise AV. More importantly, those sensors are unprotected and will get damaged from debris and hail.

Imagine a complex, single-color jigsaw puzzle. Tesla took the time to perfectly assemble it. GM on the other hand, decided it could boost profits by gluing pieces on top of each other to finish the puzzle faster, and thinks customers will never notice the difference in appearance.


 
Last edited:

garsh

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#2
Ford was a pioneer in vertical integration. They originally controlled every aspect of building a car, starting with all of the raw materials, to owning railways to transport supplies, etc. But there's a reason why the traditional automakers outsource as much as possible now.

Unions.

They can afford to pay union wages for body and final assembly, but using suppliers for as much as possible allows them to basically bypass supporting union workers for a large portion of a vehicle.