In the automotive industry, it is oftentimes more cost effective for one automobile manufacturer to license development of certain components to another manufacturer who already has a manufacturing presence in an area where they do not. When taking this approach, occasionally issues or inefficiencies with one organization’s manufacturing process are revealed. This is exactly what happened recently when one large international automobile manufacturer licensed the U.S. manufacturing of one of its four-cylinder, gas, direct-injection turbo charged engines to another international automobile manufacturer with a large U.S. presence.
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