Skip to content
‹ Back to IndustriesEngineering & Construction

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

US OEMs face mounting pressure to overhaul legacy manufacturing processes and adopt volume-driven cost strategies to remain competitive in the global EV market. American automakers must streamline existing production systems and leverage scale economics to close the cost gap with aggressive international rivals. Failure to adapt risks ceding significant market share to foreign competitors who have already embraced these efficiencies.

This story was produced through MarketScale. See how Engineering & Construction teams put it to work with Partner & Channel Enablement.

Promoted content from Experts Talk on MarketScale.

By Dave Tuttle · · Dave TuttleEv Global MarketEv Manufacturing CostMichael Davies
Share

Key takeaways

01

Legacy production methods are a primary cost disadvantage for US OEMs in EV manufacturing.

02

Volume-driven strategies and scale economics are essential for reducing EV production costs.

03

Global competitors, particularly from Asia, have already implemented cost-efficient EV manufacturing at scale.

Free workspace

Turn your Engineering & Construction expertise into content.

Record interviews, organize footage, and write with AI on a free trial of the MarketScale platform for qualifying companies. No demo required, no credit card.

Try it Free

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.

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.

Large production volumes and the "experience effect" are key to reducing costs in the EV industry.

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.
Video TranscriptExpand ↓

How do I bring down my manufacturing cost? Primarily, that's gonna be volume driven, but it's also the experience effect. And and that is how quickly can I assimilate and learn from the processes to develop better efficiencies? And it's much tougher for domestic OEMs because they're not starting from a greenfield environment. As in China, you know, there there was no legacy, you know, products to have to worry about. You you can build, forget the production going, and you don't have to worry about protecting your your legacy systems. Whereas in in our country, you know, the OEMs are faced with a a real challenge, how to protect their margins on their legacy systems and how to adapt quickly to this changing environment with EVs. And interesting. There are also subsidies or massive subsidies in the Chinese auto industry to help propel EVs. And the last I heard, there were, say, four hundred different EV manufacturers. There's they're going to be consolidations. Those are some of the job programs. It'll winnow down to a lot smaller number. But the there's a strategy there because it's a strategic investment that the country wants, the Chinese Communist, party. And if if we don't help our industry in some way, at least level the playing field or protect it. And so I'm not I don't want to be a protectionist at all, but I believe in fair trade, but it I believe in free trade, but it needs to be fair trade. And we just need to be cognizant of what our US OEMs are going through and the competitive landscape to to be able to meet this onslaught.

Experts Talk

Part of this channel

Experts Talk

Industry experts debate the ideas that drive B2B decisions.

Visit the channel

Your experts belong here

Every story in MarketScale Engineering & Construction starts with a company putting its project engineers, superintendents, and estimators on the record. Buyers are already reading this topic. The only question is whose experts they find.

Owners shortlist firms they already trust, and your field leaders become the reason your name is on that list.

Book DemoSee how it works15 minutes, straight to a calendar.

About the author

DT
Dave Tuttle
B2B Weekly

The week in Engineering & Construction, and sixteen other industries, every Monday.

Ten stories, one-line takes, five minutes. Free.

Engineering & Construction: are you visible to AI?

Before they reach out, Engineering & Construction buyers ask AI engines which vendors to trust. Explore how your experts, customers, and partners can become useful content for buyers and AI search.

Free Trial

You just read one Engineering & Construction expert. Your company is full of them.

This article was produced through MarketScale. The same platform turns your project engineers, superintendents, and estimators into the articles, video, and social content Engineering & Construction buyers are searching for. Start a free trial and see it with your own people. For qualifying companies, no credit card, no demo required.

NPS +73 · 1,000+ creators · 38+ countries

What your free trial includes

Hands-on access to the MarketScale platform
Media requests to your crowd, remote recording, AI writing tools
No demo required. No credit card.
For qualifying companies. Company confirmation required.

More Engineering & Construction Insights

Bain Capital's reported $250M minority investment values construction platform Kahua above $1B

Bain Capital's reported $250M minority investment values construction platform Kahua above $1B

Bain Capital's Tech Opportunities fund is putting a reported $250 million into Kahua at a valuation above $1 billion. The deal follows what Kahua says is $100 million in annualized revenue. The bet rests on owner-side program data, with AI features the next sign to watch for hospitals, ports and school builders.

  • 01Kahua is selling AI on the strength of the governed data owners already keep in it. That makes data quality and permissions the place to test any new AI feature it ships.

Oct 1, 2026

Element’s Charlotte lab makes tensile specimens from turbine blade roots

Element’s Charlotte lab makes tensile specimens from turbine blade roots

Element Materials Technology’s Charlotte lab wire-EDMs one-eighth-inch cylinders from the root of a turbine blade and low-stress grinds them into tensile specimens—work value stream manager Daniel Steele says he’s not aware other labs do at this size. The lab, which invested $3.2 million in 2019 according to Aerospace Manufacturing and Design, is adding creep and stress rupture frames under a lease signed in January.

  • 01The extraction know-how has a paper trail: Aerospace Manufacturing and Design reported in March 2019 that Element’s $3.2 million Charlotte investment included EDM plunge machines—and that Charlotte was the first Element lab to install them for extracting cylindrical specimen blanks.
  • 02Deloitte's November 2025 outlook put manufacturing construction spending down 7% year over year by July 2025, so a lab adding floor space and creep frames is growing inside one of the few pockets Deloitte flagged for expansion.

Sep 30, 2026

NMHC survey: 37% raised pricing on projects on hold

NMHC survey: 37% raised pricing on projects on hold

NMHC's September construction survey found 37% of respondents repriced shelved projects upward, versus 17% in June. Starts slowed too: 29% of firms started fewer projects, and a growing share saw labor and material costs outrun inflation.

  • 01Upward repricing of projects held three to six months rose from 17% of survey respondents in June to 37% in September, while downward repricing fell from 38% to 14%.

Sep 28, 2026

Explore More Engineering & Construction Insights

Read more expert perspectives from across Engineering & Construction.

Browse Engineering & Construction Hub

About the Expert

DT
Dave Tuttle

For B2B teams

Your experts could be publishing here

Stories like this one run on content MarketScale captures from real practitioners. See how your team's expertise becomes coverage in Engineering & Construction and beyond.

Book a Demo

Or call us. No forms required. We pick up. 214-945-2512