Earlier quoted context omitted.
> Auto manufacturers use machines built by other businesses and parts built by other businesses. Yeah but they generally aren't renting those machines. Renting critical pieces of business infrastructure that aren't easily replaceable is opening yourself up to rent seeking on the part of your supplier. Remember the Oracle business model--lock people in and then keep raising the price just below what it would cost to r…
I don't think the renting example is that true. AFAIK auto manufacturers certainly do "rent" many of the factory machinery they use, and they certainly "rent" the maintenance contracts from the companies who service them (the big exception I'm aware of being Toyota, which makes their own factory robotics). In other examples, many airlines do lease airplanes, and even among the airlines that do own the planes, they st…
There's Boeing which also used to have an airline. It was made illegal IIRC.
And there are things in between these two extremes.
Some airlines have a heavy maintenance organization. Some have outsourced it. Different companies have different market segments and safety records etc.
The point is, there's no one true way for all.