It is
possible that Rivian, as a cash-constrained automotive startup, may be less
able to motivate suppliers with relational contracts compared to a more
established and financially stable firm like Toyota. This is because relational
contracts often involve some level of investment in the supplier relationship,
such as through the provision of upfront financing or the sharing of
information and technology. As a startup, Rivian may not have the resources to
make such investments.
In terms of
in-house parts manufacturing, it is difficult to make a general comparison
between Rivian and Toyota without more information. Factors that could
influence the decision to manufacture parts in-house versus outsourcing to
suppliers include the availability of specialized equipment or technology, the
cost of production, and the availability of skilled labor. It is possible that
Rivian may decide to outsource more parts manufacturing to suppliers in order
to save on upfront costs, while Toyota, as a larger and more established firm,
may have more resources available to invest in in-house production. However,
this would depend on the specific circumstances of each company.
