Wednesday, September 14, 2016

Like in aero engines, there should be a joint venture to produce world-class diesel engines for passenger cars [COMPACTIDEA]

Competition is coming from Google, etc. [even if not directly]. Car-makers can no longer afford to individually manufacture engines. Multiple factories with duplication of R&D, land, machines, labor, etc., is no longer possible. Duplication and unnecessary repetition needs to be reduced to free up funds for investment in bleeding-edge technologies. Else Kodak's fate could be repeated for today's blossoming car manufacturers. One promising idea is that two or more diesel engine specialists should join forces and create a world-beating diesel engine by combining/pooling all of their individual patents/strengths. For example, VW, Fiat and Honda could collaborate to produce diesel engines for their individual passenger cars. Each of these car companies produces excellent diesel engines already. Instead of spending money three times over, the JV would need to spend only one time. This concept has worked well in the aviation business, and there's no reason why it shouldn't work in the automobile business as well.

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