Friday, February 10, 2023

Tesla's Margins? Thank Gigapresses (TSLA)

Among many other things that go into Tesla being more profitable than Ford and GM combined.

From Reuters via Yahoo Finance, February 10:

Gigapresses - the giant die casts reshaping car manufacturing

By replacing around 60 welded components with a single module, gigantic aluminium die casting machines made by the likes of Tesla supplier IDRA Group are helping carmakers to simplify manufacturing and cut costs by up to 40% in some areas.

Tesla has pioneered the use of massive casting machines, also known as gigapresses, to make large single pieces of vehicle underbodies, streamline production and reduce the work of even robots.

This has helped it become the most profitable battery electric vehicle (BEV) maker.

Critics say the process poses quality and flexibility risks, as a single flaw can compromise a whole module, and make fixing more difficult if something goes wrong.

But with the industry struggling to preserve profit margins amid surging raw materials prices, carmakers including Toyota, General Motors, Hyundai, Volvo Cars and Chinese electric vehicle startup Nio are turning to companies like IDRA for help.

"The basic idea was to provide a technology that could simplify the car production process," IDRA general manager Riccardo Ferrario told Reuters in an interview at the company's headquarters in Travagliato, northern Italy....

....MUCH MORE

The comments are interesting as well.