> And the other question is why would auto makers want to sell or sacrifice their production capacity so they Google can kill them?

Good point, but I think there are many ways to make this work. Two ideas:

1. Contract with a small/failing auto manufacturer who has little to lose (e.g. Mitsubishi).

2. Work with a manufacturer to build vehicles and also license them tech (Chrysler and Honda are interested [0]).

[0]: https://www.forbes.com/sites/alanohnsman/2017/01/10/alphabet...