Does Outsourcing Car Parts Make Vehicles Less Reliable?

If you’ve shopped for a car recently, you’ve probably heard some version of “They don’t build ’em like they used to.” A big part of that fear comes from how modern cars are built.

Today’s vehicles are assembled by the brand you see on the badge (Ford, Toyota, Honda, etc.), but most of the parts actually come from other companies around the world.

That raises a fair question for U.S. shoppers: has the outsourcing of vehicle parts made cars more or less reliable?

Short answer:

• Outsourcing itself isn’t automatically good or bad.
• It has enabled big gains in quality and safety in many areas.
• But when an outsourced part fails, it can trigger huge recalls across multiple brands—and those are the stories that make headlines.

Let’s dig into how this works, what kinds of parts are outsourced, and some specific recall examples tied directly to supplier parts.

How Much of Your Car Is Actually Outsourced?

Modern vehicles are insanely complex. On average, a single car contains around 30,000 individual components when you count every nut, bolt, sensor, and chip.

Automakers (OEMs) like GM, Ford, Toyota, and Tesla design the vehicle, do final assembly, and make some key components—but they do not make everything themselves.

Industry and government data show that independent suppliers now contribute more than 70% of the value of a typical vehicle. In other words, most of what you’re driving didn’t come from the automaker’s own factories.

How the Modern Supply Chain Works

The auto supply chain is layered:

• Tier 1 suppliers
  These companies deliver complete systems straight to the automaker’s assembly line—things like engines, transmissions, airbags, brakes, seats, and infotainment modules.
  • Examples: Bosch, Denso, ZF, Aisin, Magna, Continental, ZF, Getrag, Takata (before bankruptcy).
• Tier 2 and Tier 3 suppliers
  They supply smaller components and raw materials (cast housings, seals, wiring, chips, chemicals) to Tier 1 suppliers.

By the time a part reaches a GM or Toyota factory in the U.S., it may have passed through multiple companies and several countries.

Which Automakers Outsource Parts — and What Do They Outsource?

Practically every major automaker selling vehicles in the U.S. relies heavily on outsourced parts. None of them build a car “from scratch” in-house.

Below is a non-exhaustive overview of common outsourced systems for brands that U.S. buyers will recognize:

• General Motors (Chevrolet, GMC, Cadillac, Buick)
  • Outsourced components: transmissions (various suppliers), fuel systems, infotainment units, sensors, ECUs, airbags, seat structures, steering components, ignition switches (historically Delphi).
• Ford / Lincoln
  • Outsourced components: dual-clutch transmissions (e.g., the DPS6 PowerShift joint venture with Getrag), ECUs, turbochargers, steering racks, braking systems, airbags, infotainment hardware.
• Stellantis (Chrysler, Dodge, Jeep, Ram)
  • Outsourced components: ZF automatic transmissions, airbag modules (including from Takata in the past), steering systems, electronics, braking systems.
• Toyota / Lexus
  • Outsourced components: electronic accelerator pedal assemblies (CTS in some North American-built vehicles), braking software components, ECUs, airbag inflators (including Takata in some models), transmissions, steering parts.
• Honda / Acura
  • Outsourced components: airbag inflators (Takata), electronics, fuel systems, transmissions in certain applications, seatbelts and restraint components.
• Nissan / Infiniti, Mazda, Subaru
  • Outsourced components: transmissions (often Jatco for Nissan), airbag modules, ECUs, braking systems, infotainment.
• Hyundai / Kia
  • Outsourced components: electronics, restraint systems, infotainment, and some driveline components, alongside in-house engines and transmissions.
• Volkswagen Group (VW, Audi, Porsche)
  • Outsourced components: DSG transmissions (via suppliers), airbag modules, ECUs, suspension components, braking systems.
• BMW, Mercedes-Benz
  • Outsourced components: automatic transmissions (e.g., ZF), airbag modules (including Takata in some past vehicles), ECUs, infotainment systems, steering and braking systems.
• Tesla, Rivian, Lucid
  • Outsourced components: infotainment chips, power electronics, many interior components, brakes, steering systems. They’re more vertically integrated than some legacy OEMs in batteries, motors, and software, but still lean on suppliers for a large chunk of the vehicle.

So when we talk about “outsourcing,” we’re not talking about a few fringe brands. Virtually every automaker selling vehicles in the U.S. is built on a global supplier network.

When Outsourcing Helps Reliability

It’s easy to focus only on the disasters, but there’s a positive side:

---

---

1. Specialization typically improves quality
   • Companies like Bosch, ZF, Denso, Aisin, and Continental are laser-focused on specific systems: fuel injection, braking, transmissions, driver-assistance tech, etc.
   • This specialization often leads to better durability and performance than an automaker could realistically deliver if they tried to build everything in-house.
2. Shared parts can spread proven designs
   When a transmission or brake system proves reliable in one model, it can be used across multiple brands and platforms, improving reliability for millions of vehicles.
3. Economies of scale fund better R&D
   Suppliers selling to multiple automakers can justify heavy investment in testing, materials, and incremental improvements—something that’s harder if each brand built its own small-volume components.

This is one reason many modern powertrains and structures last longer than those from the 1980s and early 1990s, even as vehicles have become more complex. Rust protection, crash structures, and basic mechanical durability are generally better today.

When Outsourced Parts Go Wrong: Big Recall Case Studies

Where outsourcing can hurt is when a part is defective—and that same part is used across millions of vehicles and multiple brands.

1. Takata Airbag Inflators

• What happened:
  Takata supplied airbag inflators that could degrade over time and rupture, sending metal shrapnel into the cabin.
• Who was affected:
  At least 19 different automakers and about 37 million vehicles in the U.S. alone, making it the largest and most complex safety recall in NHTSA history.
• Examples of brands involved:
  Honda (Takata’s largest customer), BMW, Toyota, Ford, Subaru, Nissan, Mazda, and many more, including additional BMW recalls in the U.S. as recently as 2024.

This is a textbook example of outsourced parts turning one company’s quality failure into a multi-brand safety crisis.

2. Toyota’s “Sticky” Accelerator Pedals (CTA Corporation)

• What happened:
  In the late 2000s, Toyota recalled millions of vehicles in the U.S. for unintended acceleration issues. Two major mechanical causes were identified:
  1. Floor mats trapping the pedal.
  2. Certain accelerator pedal assemblies that could stick or return slowly.
• The supplier angle:
  Some of the problematic pedal assemblies were supplied by CTS Corporation, an American supplier. Vehicles built with Denso pedals (another supplier) were not affected.

Again, a supplier-specific design difference meant that not all Toyotas were equally affected—it depended on which outsourced part they used.

3. GM Ignition Switch Recall (Delphi)

• What happened:
  Certain GM small cars (like the Chevrolet Cobalt) had ignition switches that could unintentionally move out of the “run” position, shutting off the engine and disabling airbags.
• The supplier angle:
  The ignition switch was built by Delphi Automotive, a major Tier-1 supplier. Internal documents showed Delphi engineers knew the part did not meet GM’s own torque specifications.

In this case, both GM’s decision-making and the supplier’s part contributed to a long-running defect with tragic outcomes.

4. Ford’s DPS6 PowerShift Dual-Clutch Transmission (Getrag)

• What happened:
  Ford’s DPS6 PowerShift dual-clutch transmission, used in many Fiesta and Focus models, suffered from harsh shifting, shuddering, and premature clutch wear.
• The supplier angle:
  The transmission was designed and built through Getrag Ford Transmissions, a joint venture tied to supplier Getrag.
• Impact on reliability:
  It led to class-action lawsuits, service campaigns, and a damaged reputation for the affected vehicles, even though the engine itself might have been fine.

Here, an outsourced (and co-developed) major component became the weak link that defined the vehicle’s reliability in owners’ minds.

So… Has Outsourcing Made Cars More or Less Reliable?

For U.S. drivers, the reality is nuanced:

Ways outsourcing has helped reliability:

• Access to highly engineered systems from specialists (e.g., proven ZF automatics, Bosch safety systems) has improved reliability and performance in many models.
• The fact that suppliers serve multiple OEMs can spread best practices and proven components across the industry.
• Many modern vehicles routinely last 150,000–200,000+ miles with fewer basic mechanical issues than cars from decades ago.

Ways outsourcing has hurt reliability (or at least risk perception):

• When a supplier part is defective—airbag inflator, ignition switch, transmission—it often affects millions of vehicles across different brands, creating giant recalls and high-profile headlines.
• Cost pressure can push some suppliers and OEMs toward cheaper materials or designs, especially in non-luxury segments, which may reduce long-term durability.
• Complex, software-heavy systems sourced from multiple electronics suppliers can introduce new failure points that didn’t exist in simpler vehicles.

Key point:
There’s no solid evidence that “outsourced parts = worse reliability” across the board. Instead, reliability depends on:

• How well the automaker designs and specifies the part.
• How carefully they choose and monitor suppliers.
• How aggressively they test components before putting them into millions of vehicles.

Some of today’s most reliable cars are absolutely packed with outsourced parts. The issue isn’t outsourcing itself—it’s how well the brand manages that outsourced supply chain.

What This Means for U.S. Car Shoppers

You can’t avoid outsourced parts—they’re baked into the modern auto industry. But you can protect yourself:

1. Check recall history
   • Use NHTSA’s website to search a vehicle by VIN for open recalls about specific model years.
2. Pay attention to “problem components” in research
   • Look for mentions of repeat issues with transmissions, engines, airbag systems, or electronics on specific models and years.
3. Avoid the very first model year of an all-new design when possible
   • Early production often shakes out supplier issues and design flaws.
4. Get a pre-purchase inspection
   • A pre-purchase inspector can spot early signs of problem components (e.g., rough-shifting transmissions, abnormal noises, or warning lights).
5. Use data-driven tools, not just forum opinions
   • Use Car IQ Report’s reliability rating reports uses verified government data and powerful data insights to help guide you to the most reliable vehicles before you buy.

Bottom Line

Modern vehicles are the product of huge global supply chains. More than 70% of the value in a typical car now comes from suppliers, not the brand on the badge.

That outsourcing has delivered major gains in safety, efficiency, and overall durability—but it has also produced some of the biggest safety recalls in history when a supplier part fails across many models.

As a U.S. shopper, the smart move isn’t to avoid outsourced parts (you can’t). It’s to focus on brands and specific model years with a strong track record, minimal serious recalls, and solid real-world data behind them.

---

---