Competing against Tesla 3, the Bolt has the potential to lead the market. The lessons learnt from Volt would serve GM well.
Tesla had planned on selling 500,000 cars to achieve economies of scale. Due to production issues it could only sell 4000 cars. Elon Musk, CEO, Tesla says they are aware of the problems & will fix in no time to produce 500,000 vehicles. However, he also accepted that it is a “production hell”(Debord, 2017). Companies have formal training programs, trouble-shooting manuals as well as on the job training. A situation may become “production hell” particularly when reps find no answer in their training or the trouble-shooting manual. In such cases, the experience of the rep and the technical specialist can, through informal exchange of ideas, can save the day. (Brown, Duguid, 1991)
GM recognizes that the key to success is in building batteries, which reduce cost per kwhr as well as take the car longer distance in one charge. Thus, it has teamed up with LG Chem to produce such batteries. Competitive success depends to a considerable degree on firm-specific skills …show more content…
This will increase scope and also lead to economies of scale. However, it also requires a robust & dynamic supply chain. GM, in association with LG Chem is putting up a factory to produce batteries. This strategic partnership favors GM, as LG Chem is a known & trusted name in the electrical field. While the battery chemistry belongs to GM, LG brings decades of successful experience of the electrical/electronic field. This should translate into product as well as process innovation for LG has been in this field for a good bit of time. Such collaboration reduces risk of the technology not being protected and ensures there will be no “bottlenecks” in supply of the critical battery. “Distribution and specialized manufacturing competences often become bottlenecks,” says
Tesla had planned on selling 500,000 cars to achieve economies of scale. Due to production issues it could only sell 4000 cars. Elon Musk, CEO, Tesla says they are aware of the problems & will fix in no time to produce 500,000 vehicles. However, he also accepted that it is a “production hell”(Debord, 2017). Companies have formal training programs, trouble-shooting manuals as well as on the job training. A situation may become “production hell” particularly when reps find no answer in their training or the trouble-shooting manual. In such cases, the experience of the rep and the technical specialist can, through informal exchange of ideas, can save the day. (Brown, Duguid, 1991)
GM recognizes that the key to success is in building batteries, which reduce cost per kwhr as well as take the car longer distance in one charge. Thus, it has teamed up with LG Chem to produce such batteries. Competitive success depends to a considerable degree on firm-specific skills …show more content…
This will increase scope and also lead to economies of scale. However, it also requires a robust & dynamic supply chain. GM, in association with LG Chem is putting up a factory to produce batteries. This strategic partnership favors GM, as LG Chem is a known & trusted name in the electrical field. While the battery chemistry belongs to GM, LG brings decades of successful experience of the electrical/electronic field. This should translate into product as well as process innovation for LG has been in this field for a good bit of time. Such collaboration reduces risk of the technology not being protected and ensures there will be no “bottlenecks” in supply of the critical battery. “Distribution and specialized manufacturing competences often become bottlenecks,” says