US OEMs Must Streamline Existing Systems and Apply Volume-Driven Strategies to Cut EV Manufacturing Costs

Kuka Banner Ad

 

As the electric vehicle (EV) market continues to expand, US original equipment manufacturers (OEMs) face significant challenges in reducing manufacturing costs to remain competitive. With growing global competition, particularly from countries like China that benefit from massive subsidies and a fresh industrial slate, the urgency for US manufacturers to adapt has never been more critical.

What strategies can US OEMs employ to effectively reduce costs and compete on the global stage in the EV market?

On an engaging episode of Expert’s Talk,  Michael Davies, the Founder & Data Scientist at Green Econometrics, and Dr. Dave Tuttle, a Research Associate at the Energy Institute at the University of Texas at Austin explore several key strategies and perspectives essential for US EV manufacturers. Davies believes that large production volumes and the “experience effect” are key to reducing costs in the EV industry while Dr. Tuttle adds that US car makers also need to manage their existing systems while transitioning to EVs. They both suggest that strategic policies can help US manufacturers compete globally.

Key Takeaways:

  • Volume-Driven Manufacturing: Increasing production volume is fundamental, as it distributes fixed costs over more units, potentially lowering the cost per unit.
  • Leveraging the Experience Effect: Rapid assimilation and learning from existing manufacturing processes can drive efficiencies, reducing waste and improving productivity.
  • Navigating Legacy Challenges: Unlike new players, US OEMs must balance innovation in EV technology with the management of existing legacy systems, a significant hurdle that requires strategic foresight.
  • Policy Support: There’s a strong call for policy interventions that can help level the playing field, echoing the need for fair trade rather than protectionism.
  • Anticipating Industry Consolidation: With numerous players in the market, especially in regions like China, industry consolidation is inevitable. US manufacturers need strategic investments to not only survive but thrive amidst these changes.

Article written by Sonia Gossai

Follow us on social media for the latest updates in B2B!

Image

Latest

digital learning ecosystem
Stride at 25: Redefining the Digital Learning Ecosystem for Today’s K–12 Learners
May 28, 2025

As virtual learning matures and school choice accelerates across the U.S.,the 25th anniversary of Stride Inc. offers a moment to reflect on how far the digital learning ecosystem has come and where it’s headed.. Once known as K12 Inc., the company helped pioneer online education at scale. But in a landscape shaped by evolving…

Read More
search
From Search (SEO) to Answers with Generative AI
May 27, 2025

In this episode of The Marketing AI SparkCast, Aby Varma—founder of Spark Novus, which partners with marketing leaders to adopt AI responsibly and strategically—hosts Mike Ensing, Founder and CEO of Revere AI. They explore how LLMs are revolutionizing search, shifting the customer journey, and forcing a new marketing playbook where brand discovery is increasingly…

Read More
Greener future in HVAC
Scale Smarter in HVAC: Balancing Growth with Employee Engagement
May 27, 2025

The HVAC industry is undergoing significant growth, driven by increased suburban migration and a surge in home renovations requiring system upgrades. The U.S. HVAC market is projected to expand at a compound annual growth rate (CAGR) of 7.4% from 2025 to 2030. As businesses scale to meet this demand, balancing expansion with retaining strong…

Read More
educational choice
Educational Choice Isn’t Enough—Implementation Will Make or Break It
May 26, 2025

The U.S. education landscape is undergoing a seismic shift as more states adopt education savings accounts (ESAs), signaling a broader push toward personalized, parent-directed learning and broader educational choice. With over a dozen states now offering universal ESA programs, debates around school choice have reached a new level of urgency. Throughout 2024, enthusiasm for…

Read More