But the more the Tesla guys researched the industry, the…
““But the more the Tesla guys researched the industry, the more they realized that the big automakers don’t even really build their cars anymore. The days of Henry Ford having raw materials delivered to one end of his Michigan factory and then sending cars out the other end had long passed. “BMW didn’t make its windshields or upholstery or rearview mirrors,” Tarpenning said. “The only thing the big car companies had kept was internal combustion research, sales and marketing, and the final assembly. We thought naïvely that we could access all the same suppliers for our parts.””
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
The automotive industry has shifted from full‑scale manufacturing to focusing on core competencies while outsourcing many components.
In simple terms: Car makers now specialize in design, engine research, sales, and final assembly.
Key Takeaway
Focus on core strengths, outsource the rest.
Themes
industry evolution
outsourcing
core competencies
Mood
analytical
critical
Type
business
technological
When to use this quote
- automotive manufacturing
- startup strategy
- technology adoption
- business model innovation
Key Concepts
supply chain strategy
vertical integration
Questions to Reflect On
- Which functions should a company keep in‑house?
- How does outsourcing affect innovation?
A Different Perspective
Outsourcing can reduce control over quality and brand consistency.