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Star Wars OT (1977-1983) In the background, we can see the commercial model kits used for kitbashing.

Colin Cantwell: "Most of these photos were taken in my backyard in 1975 after kitbashing the pre-production models for the the X-Wing, TIE, and others. Kitbashing is a method of model building that myself and a few others pioneered in the early 70's."

These preliminary models then fed into the work of Ralph McQuarrie (here) and Joe Johnston.

This drawing work then feeds into the work of ILM's model makers. So, for A New Hope, there was kitbashing at the very beginning of preproduction (Cantwell), and then again during post-production (ILM).

Don't think kitbashing is dead. ILM bought large quantities of new model kits and scanned the pieces. When building any new ship, the modelling team starts with scanned pieces of actual kits!