CE

6. Supplier Recommendation

Considering the factors discussed, Elroy International could be the best option for GM. Elroy’s willingness to share IP is a significant advantage for GM’s long-term strategy of maintaining control over its autonomous vehicle technology. Although Elroy is relatively untested in brake systems, its recent acquisition of Cogswell Braking Systems boosts its credibility. Furthermore, Elroy’s proximity to GM facilities in Mexico reduces transportation costs. While some risks are associated with its lack of experience in brake systems, the strategic value of IP sharing and lower costs make it a strong candidate.

2. Qualitative Assessment

RAI

Pros:

RAI is a previous supplier for 2018 Chevrolet Bolt EV, and it has the capability to quote on all the necessary e-boost modules. Moreover, RAI has been an expert of e-boost technology so the quality of their service could be guaranteed.

Cons:

RAI refuses to share their IP with GM, so GM won’t have access or control over the software and data associate with the braking system

RAI request a price increase and larger percentage of GM’s business and a long-term contract guarantee. With all these, GM’s cost will increase and future business flexibility will also be affected.

Elroy

Pros:

Elroy is willing to share IP with GM, which will give GM more control in this business

Elroy has acquired UK Cogswell Braking Systems, and since they did supply some other communities to GM, their qualification in terms of technology capabilities and familiarity to GM are secured.

Cons:

Though now Elroy acquired UK Cogswell Braking Systems, they were not a regular GM supplier for brake systems in the past, so their reliability has not been tested before.

Even though Elroy claims that they manufactured some AV components, they still purchased huge amount of braking hardware components from Orbitty. Since Elory’s supplying service is largely dependent on other supplier, it brings much more uncertainty in the business.

R.U.D.I.

Pros:

R.U.D.I. is a long-standing prototype supplier for GM and they have a strong reputation for customer service. This proves that they are familiar with GM and they have both the experience and capability to provide good service .

Technology-wise, the language used in SOR is very familiar with R.U.D.I’s engineering team. This means they have experienced tech-team to support the service.

They are capable of producing various AV components, including software, sensors, and electronic modules.

They are open to share IP information in the future.

Cons:

They insist on retaining IP rights for now.

R.U.D.I. is not a seasoned production supplier for GM, which means they are not very experienced in large amount of production supplying and might lead to quality issues in the future.

Orbitty

Pros:

Orbitty is well-known for their strong manufacturing and innovation capabilities and considered as the leader in automobile design and engineering.

They have co-developed a successful product in the past, proving their capabilities.

They are willing to share IP, with a premium cost though.

Cons:

There will be some unanticipated cost along with the high premium cost for the IP, which will make Orbitty a rather expensive choice.

Arrogance attitude and lack of customer services.