New pathways open in the female's personality component, building a new conciousness. When the new mind is complete, the new Transformer will be born, this process being exactly like the old 'budding' method, but the designs imprinted on the new body are from the Transformer's own mind. This new Transformer is rather small, about Micromaster size, to avoid undue strain on the mother. When the child's mind has matured, it will 'bud' a new body from the old one, this one full-sized and better equipped for combat. Of course, I'm missing any methods shown in the anime, manga, or UK comics, not to mention plenty of fanfics.
People feed 'em.
They clothe 'em. They carry them everywhere they go. There it is.