Yeah that makes sense, I bet you’re right or at least that’s a large part of it.
Reminds me of this video I saw about economies of scale specifically regarding a special part that went into a guitar. The maker could get the material and produce that part pretty cheaply until the automotive industry stopped using that same material. Suddenly they could barely source the material anymore and just had to cancel the part.
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My guess is that none of them are at scale to the point where the margins are great. To make the margins acceptable price had to go up.
Nothing is really profitable in auto until the whole production line is operating at full scale.
Yeah that makes sense, I bet you’re right or at least that’s a large part of it.
Reminds me of this video I saw about economies of scale specifically regarding a special part that went into a guitar. The maker could get the material and produce that part pretty cheaply until the automotive industry stopped using that same material. Suddenly they could barely source the material anymore and just had to cancel the part.
That’s crazy but makes sense. Basically benefiting from autos overflow.