Profit Margin: Auto vs. Apple vs. ODM

Apple has a tried-and-true approach to launching new products: The company designs in-house, sources its own components, and works with a contract manufacturer to assemble it for sale. To build a vehicle, Apple has 3 primary options: Partner with an existing carmaker; build its own manufacturing facilities; or team up with a contract manufacturer such as Foxconn or Magna International. Eric Noble, president of consulting firm the CarLab, has indicated that Apple is more likely to go with a contract manufacturer because that is the business model they are used to. (CN Beta, Bloomberg)

Pegatron embraces a strategy of producing key components on ODM / OEM basis mainly for Tesla, while Foxconn has set up MIH, an open hardware / software-integration platform for developing EVs, accompanied by an ecosystem, the MIH Alliance. (CN Beta, Sina, Focus Taiwan, Digitimes, press)

Lucid Motors has received approval from the Casa Grande City Council to begin the construction of the Phase 2 portion of its new electric vehicle manufacturing facility. The first phase is completed in Dec 2020, and is capable of delivering up to 30,000 vehicles annually. (CN Beta, Teslarati)

Uber and Lyft have announced the Industry Sharing Safety Program, a first-of-its-kind effort to share information about the drivers and delivery people deactivated from each company’s platform for the most serious safety incidents including sexual assault and physical assaults resulting in a fatality. (CN Beta, Neowin, Business Wire)

LG Electronics and Luxoft, a DXC Technology Company, have announced the launch of their joint venture aimed at advancing the companies’ shared vision at enabling digital, consumer-grade experiences in automotive. Alluto will drive the commercialization of production-ready digital cockpit, in-vehicle infotainment, passenger-seat entertainment (PSE) and ride-hailing systems based on the webOS Auto platform. (CN Beta, LG, Korea Bizwire)