Re:economics 101 (Score 1)

Look at the early car business. There were over 200 car makers in the US at one point. The small ones could not command the resources needed to build big assembly lines, they could not compete. They were eaten by the bigger companies.

What really happened is that the government got involved in the '50s and started regulating the car business. The smaller car makers that previously had a viable business model (even if small) now had to spend extra money to abide by the new regulations (e.g., safety and environmental). Only the big companies could afford this and now look where we are today.

There are still kit car makers, but they only build the car 49% complete. This way they don't incur liability and all the costs that implies.