Tesla Wants to Reduce Costs with New Manufacturing Process

At a recent event for investors¹, Tesla presented an idea that may change the way cars are made around the world.

The manufacturing idea is called the unboxed process.

If it succeeds in reducing the cost of electric cars, analysts² say the process might change the way all automakers build cars.

To understand Tesla's idea, it is important to know that most automakers now use a system first designed by the Japanese company, Toyota.

Toyota's process is the Toyota Production System. The carmaker first builds the body of the car and then moves it along an assembly line. Workers and robots put parts of the car, such as the engine and seats, into the "box" of the car as it moves. After the outside metal panels⁴ are added, the car is painted.

But Tesla says it wants to change the way cars are made.

Tesla thinks it can reduce costs by making large pieces separately and putting them together at the last moment. In the "unboxed" system, parts of the car such as the outside metal, doors, and front end are painted separately and then joined together at the end. Some parts of the car will be first connected to a large battery pack and then added to the overall structure.

Tesla said in a statement that it wants to "build more vehicles at a lower cost." The aim is to cut the final cost of an electric car from over $40,000 to under $30,000.

The assembly system will not be used until at least late 2024, when a manufacturing center opens in Monterrey, Mexico. Tesla is building the center for a cost of $5 billion.

Martin French is a director at Berylls, an automotive research company. He studies the industry's move to electric vehicles. French said Tesla's idea is a direct challenge to Toyota.

He said, "I got the feeling when I watched the Tesla (presentation) that the Toyota Production System handbook⁵ has just been thrown up in the air and machine-gunned down."

Jan-Philipp Buchler is a researcher at the Free University of Dortmund in Germany. Buchler said the Tesla process will increase production speed and reduce complexity⁶. He called the idea "revolutionary."

However, critics note that some Tesla ideas have failed to work in real life. They point to problems with the company's self-driving systems and the Cybertruck, which has been delayed for some time.

In addition, production experts say the Tesla plan does not consider all parts of the process in the same way as the Toyota system.

James Womack of the Massachusetts Institute of Technology wrote a book about Toyota's production methods. He said the main difference is that Toyota's plan was a system that helped automakers run their entire business. While Tesla's idea is only "an assembly process."

Hide Oba is a Japanese manufacturing expert who once worked for Toyota. Oba warned that Tesla's plan will only work if the "unboxed vehicle modules⁷ are completely synchronized⁸, and finished blocks arrive for a final put-together just-in-time."

He also wondered if Tesla will be able to use the unboxed system for different vehicle models in the same production center. He said he thinks it is "next to impossible" because making large parts of the car separately may not permit manufacturing changes, like when the company designs a new model.

He said that limitation "could become a drag on the company's overall efficiency."

Words in This Story

assembly line –n. a line of machines, equipment, workers, etc., in a factory that builds a product by passing work from one station to the next until the product is finished

panel³ –n. a piece of metal that makes up part of a car's exterior⁹

challenge –v. to test the ability of something or someone to stay in their current position; in this case a company

handbook –n. a book or document that gives information about how to do something

gunned-down –v. shot down in a dramatic way

module–n. a piece of something larger, such as a section of a car

synchronized –adj. something that fits together just right

efficiency –n. the ability to do something without extra effort or extremely hard work

1 investors   

n.投资者，出资者( investor的名词复数 )

参考例句：

• a con man who bilked investors out of millions of dollars 诈取投资者几百万元的骗子
• a cash bonanza for investors 投资者的赚钱机会

2 analysts   

分析家，化验员( analyst的名词复数 )

参考例句：

• City analysts forecast huge profits this year. 伦敦金融分析家预测今年的利润非常丰厚。
• I was impressed by the high calibre of the researchers and analysts. 研究人员和分析人员的高素质给我留下了深刻印象。

3 panel   

n.面，板，专门小组，控制板，仪表盘

参考例句：

• The unusual control panel on the walls caught our attention.墙上不同寻常的控制板引起了我们的注意。
• The panel of judges included several well-known writers.评判小组中包括几位知名作家。

4 panels   

镶板( panel的名词复数 )； 面； （门、墙等上面的）嵌板； 控制板

参考例句：

• One of the glass panels in the front door was cracked. 前门的一块方玻璃破裂了。
• Make sure the panels are treated with a wood preservative. 确保镶板用木材防腐剂处理过。

5 handbook   

n.手册，便览，指南

参考例句：

• Her mother bought a handbook of English grammar for her last Sunday.上星期天她母亲给她买了一本英语语法手册。
• None of them has got a handbook to tourists.他们谁也没搞到旅游指南。

6 complexity   

n.复杂(性)，复杂的事物

参考例句：

• Only now did he understand the full complexity of the problem.直到现在他才明白这一问题的全部复杂性。
• The complexity of the road map puzzled me.错综复杂的公路图把我搞糊涂了。

7 modules   

n.模块( module的名词复数 )；单元；（宇宙飞船上各个独立的）舱；组件

参考例句：

• The course consists of ten core modules and five optional modules. 这门课程包括十个必修单元和五个选修单元。
• Our English course is divided into modules on poetry, drama, and novels. 我们的英语课分为诗歌、戏剧和小说等单元。 来自《简明英汉词典》

8 synchronized   

同步的

参考例句：

• Do not use the synchronized keyword in Managed Objects. 不要在管理对象上使用synchronized关键字。 来自互联网
• The timing of the gun was precisely synchronized with the turning of the plane's propeller. 风门的调速与飞机螺旋桨的转动精确同步。 来自辞典例句

9 exterior   

adj.外部的，外在的；表面的

参考例句：

• The seed has a hard exterior covering.这种子外壳很硬。
• We are painting the exterior wall of the house.我们正在给房子的外墙涂漆。