Theory found on TechCrunch that hypothesizes the problem with the auto industry is that for any given car- one company produces every part. From the body to the radio to the engine to the seats – all are made(or at least designed) by one company.
Instead, the author suggests, the auto industry should be broken up. If you had a company that simply created engines, they could focus on that better and create more efficient motors. The body company could find ways to make the drag efficient better, etc.
With the parts broken up, they could become more efficient through specialization.
Essentially, as the writer points out- this is the apple v pc argument. Apple has total control over all the components of its computers. Everything is designed by one company. The quality is superb for the most part. In the PC world, there are many many manufacturers, but the common general sets of standards make sure everything works together. With the standardized parts of today’s cars – could the PC model work? Would quality suffer, or would the increased specialization create better products? Apple products tend to be costlier, whereas PC parts are generally cheaper. PCs are generally known not to work as well as Apple products, because they are designed separately. Does the analogy hold, or is there something different about the auto market?
