Automotive Production: Which Scenarios Favor Outsourcing to a Contract Manufacturer

IN WHICH SCENARIOS IS IT BENEFICIAL TO OUTSOURCE AUTOMOTIVE PRODUCTION?

Aside from production capacities and skills, the contract manufacturing partner must have experience and know-how – not only regarding the production of a complete vehicle, but also in terms of automotive engineering and industrialization. These qualities are vital in enabling a faster ramp-up and preventing unnecessary additional costs.

The following business models are the most common ones for OEMs working with a contract manufacturer:

General Contractor

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