Game between OEMs and car companies

In the field of automobile manufacturing, OEM is a common model. For example, Weilai's early products were manufactured by JAC, and Ideal's early products were manufactured by Lifan. However, as the companies grew and expanded, these companies eventually chose to build their own factories. Although self-built factories face financial pressure and market window risks, they can enhance the company's independent control and confidentiality. Therefore, even if the OEM has a large surplus of production capacity, car companies still have a dominant position in OEM negotiations.