Build or buy? Automakers chasing Tesla rethink dependence on suppliers


FILE PHOTO: The logo of Tesla is pictured at a dealership in Chambourcy, near Paris, France, December 15, 2021. REUTERS/Gonzalo Fuentes

(Reuters) -Automakers racing to develop battery-powered, software-driven vehicles to compete with Tesla Inc are confronting a new challenge: what technology to build themselves, and what to keep buying from suppliers.

Becoming more vertically integrated by doing more manufacturing in-house represents a major shift for most global automakers, who have relied for decades on suppliers to produce critical parts and software, and manage sprawling manufacturing networks in low-wage countries.

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