🧠 Food for thought

Implications, context, and why it matters.

Slate’s low-cost truck depends on a simpler factory setup

• To reach its low price, Slate is cutting costs inside the manufacturing process 1.
• The Indiana plant will not include a paint shop (a costly part of a car factory that reportedly cost Mercedes-Benz US$1 billion) because the truck uses plastic body panels and does not get painted 1.
• That choice also removes the need for large presses used to stamp metal body panels 1.
• The truck uses about 600 parts versus roughly 2,500 in many vehicles, which lowers spending on labor and supplier management 2.

Slate’s platform strategy may reshape how people own and modify cars

• Slate wants to pair the vehicle sale with an open setup for customization 2.
• The company expects to publish computer-aided design (CAD) files and part specifications where safety is not at risk, which could help outside sellers build an accessory market similar to Etsy, the online marketplace for independent sellers 2.
• Slate also expects to sell do-it-yourself kits direct to consumers, including a flat-pack sport utility vehicle (SUV) kit shipped to customers plus vinyl-wrap kits for the unpainted body panels 2.
• The approach could shrink the traditional dealer’s role in customization and service, while Slate still expects to work with partners on distribution and service 2.