Question

Acquisitions of key suppliers suggest that automakers may want more control over autonomous vehicle technology. General Motors Co. (GM) acquired a lidar sensor maker last week, raiding the possibility that the giant automaker plans to develop its most. important autonomous car technologies in house. The acquisition of Strobe, inc. complements GM's 2016 purchase of Cruise Automation, a 5 an Francisco-based technology company that speciaiizes in the development of the autonomous software stack. Bringing the two companies under the GM umbrella puts the automaker in possession of two of the kev elements - brains and vision - needed for self driving cars. In 2016, GM acquired Cruise Automation, a maker of autonomous car technologv, for $581 million Last week, the giant automaker acquired Udar sensor maker, strobe, inc. (Source: General Motors) They want to bring as much of the automated driving system in house as they possibly can, Sam Aboelsamid, senior analvst for Navigant Research, told Design Nows. And that's not unique to GM. Ford has been doing the same thing, and other ofMs are looking at it, as weill. What are the reasons a firm may choose to do something in-house rather than outsource?

Answer 1

Firms may opt for in-house operations over outsourcing to gain greater control over production, secure their supply chain, and safeguard proprietary information. The automotive industry, in particular, leverages these strategies to remain competitive amidst global pressures and to foster innovation in technology like autonomous vehicles.

Step-by-step explanation:

Firms may choose to bring operations in-house rather than outsource for several reasons. The acquisition of key suppliers and technologies ensures control over the production process, secures the supply chain, and preserves trade secrets and proprietary knowledge. It allows firms to quickly respond to market changes and consumer demands, promoting innovation and ensuring quality standards. In sectors like the automotive industry, where competition and technological advances are intense, having in-house capabilities can provide a competitive edge.

Historical context shows that automobile manufacturing was once the most important industry in the United States, with companies such as Ford and General Motors leading the market. However, as times changed, globalization expanded market boundaries, and U.S. automakers faced fierce competition from global players. This competition drove innovation and improvements in vehicle quality and fostered strategies like in-house development to maintain a competitive advantage.

Globalization and the rise of international competitors, such as Toyota and Honda, have pressured traditional U.S. automakers to adapt and evolve. For instance, General Motors' strategic acquisitions of Cruise Automation and Strobe Inc. represent an effort to consolidate critical technologies for autonomous vehicles. These moves are not unique to GM, as other firms also seek to internalize key operations to mitigate risks associated with outsourcing and to drive technological advancements.