In the UK we call this a 'screwdriver operation' where they don't 'really make cars' but they just put a few bits together, pre-assembled elsewhere. This started with the Japanese auto manufacturers wanting to compete in Europe, the UK government gave the incentives to Nissan and Honda but the factories were 'screwdriver operations' according to sceptics.
It's called an assembly plant in the US. There's nothing inherently wrong with this and it can actually afford greater automation and efficiencies in a number of ways. You have the option of receiving prefabricated components from multiple sources. If you're doing built to order manufacturing you can slot in variations more easily of they're complete modules assembled identically.
The more parts in assembly there are, the harder it is to control quality. You have to trust that the 3rd party supplier is meeting the required spec in manufacture and that the parts are damaged in transit.
> The more parts in assembly there are, the harder it is to control quality.
Which is why they tend to move to larger modular components. Things like seats arrive preassembled and simply need to be inspected and installed. Inspection can happen off the assembly floor and managed without disrupting production.
> You have to trust that the 3rd party supplier is meeting the required spec in manufacture and that the parts are damaged in transit.
You don't have to rely on 3rd parties to run an assembly plant. Your assembly plant can be fed by your own manufacturing facilities. But if you do rely on 3rd parties, it's definitely possible and companies like Apple do it with great success.
> The more parts in assembly there are, the harder it is to control quality.
The quality of passenger cars is so, so much higher now than prior to the use of these methods. It seems like they've got the quality control processes taken care of to some extent.
