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engines as the core of the auto industry

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Explain why auto manufacturers produce their own engines but purchase mirrors from independent suppliers.

© BrainMass Inc. brainmass.com September 20, 2018, 3:26 am ad1c9bdddf - https://brainmass.com/economics/economic-development/engines-as-the-core-of-the-auto-industry-268802

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The simplest one line answer is that engines are the core of the auto industry, and if you outsource the core business what is your role in the industry?

The practical reason is just an extension of this idea. Making a car involves the use of thousands of small components. Most of these components, including mirrors, can be mass produced at very low costs. The option that the companies have is to focus on what is their ...

Solution Summary

Engines are assessed as the core of the auto industry.

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