GM Inside News Forum banner
1 - 20 of 58 Posts

·
Premium Member
News Contributor
Joined
·
5,624 Posts
Discussion Starter · #1 ·
How Audi, BMW, Mercedes-Benz, and Porsche Plan to Shock Tesla
Automobile Magazine
By Georg Kacher
Dec 11, 2014

Audi, BMW, Mercedes-Benz, and Porsche are about to invest a combined 6 billion euros (about $7.5 billion) in new high-end electric vehicles and plug-in hybrids due out between 2018 and 2021. Their target: the American upstart from Silicon Valley.

Ten years ago, when Elon Musk’s outfit was still a cottage enterprise selling electrified Lotus Elise roadsters, the underdog from San Carlos, California, was not even on the radar of German captains of the industry. But then Tesla released the Model S electric luxury sedan, and the niche manufacturer transformed into a game changer. In addition to selling more than 33,000 cars last year, the company started to roll out a clever supercharger network, announced plans for a second plant and an R&D center in Europe, unveiled an innovative battery-swap program, previewed its first SUV (the falcon-wing Model X), and gave details of a new high-volume, low-cost product, the $35,000 Model 3, which aims directly at the likes of the BMW 3 Series. As a result, Tesla’s stock market value has soared to an incredible $30 billion.

Although Tesla’s ink is still red and the sales figures are comparatively modest, the predominantly German luxury-car establishment is already feeling the squeeze in certain micromarkets such as Southern California and Norway, where the Tesla Model S attracts more affluent buyers than the S-Class, 7 Series, or A8.

In their counterattack, the four German premium car manufacturers are all pursuing similar goals: electric vehicles and plug-in hybrids. Instead of pooling resources and components, however, they’re heading down individual yet almost parallel avenues.

Like the BMW i8 or next year’s Audi R8 e-tron, their mission is to act as halo cars, technology showcases, and image leaders for wealthy, green-minded early adopters. Yet all of them are intended to be more than niche models; global target volumes are in the tens of thousands, and projected prices range from just below that of the Tesla Model S to more than $125,000. And they pave the way for an even broader range of more affordable German plug-in vehicles.

*Full Article at Link
 

·
Premium Member
News Contributor
Joined
·
5,624 Posts
Discussion Starter · #5 · (Edited)
I saw this and thought. Based on their expected pricing, maybe the ELR's price isn't so far off.
I'm not sure the pricing is the whole issue either that is hurting the ELR sales, most likely the perception of Volt/Yesterdays technology is a major factor as well.

Cadillac will need their car to be a technological leap.

Though electric cars will be a small/limited market segment for the foreseeable future, GM will need a few good viable cars in that segment to have a foothold when/if the growth substantially takes off.
 

·
Registered
Joined
·
44,427 Posts
Why would Tesla be "so screwed?"

Their mission statement IS NOT to make electric cars, as many people seem to think. Their mission statement is to change how the world thinks about electric cars.
"Tesla’s goal is to accelerate the world’s transition to electric mobility with a full range of increasingly affordable electric cars."

Tesla provides the technology and the batteries and the research to support that goal.

With competition, the winners will be the consumer.
 

·
Registered
Joined
·
19,316 Posts
I've said it many times before. I'm not so sure Tesla's allure is it being electric. I think a big part of it is that it is a new brand, there aren't a million Tesla's on the road like there are BMW's, Merc's and Audi's. The uniquiness of Tesla is something that no existing make can copy.....
 

·
Registered
Joined
·
44,427 Posts
I've said it many times before. I'm not so sure Tesla's allure is it being electric. I think a big part of it is that it is a new brand, there aren't a million Tesla's on the road like there are BMW's, Merc's and Audi's. The uniquiness of Tesla is something that no existing make can copy.....

The allure is that it is a very attractive and beautiful car that just happens to be electric.
I'll guarantee you, if Teslas looked like a Spark, it wouldn't sell.

Furthermore, it's the fact that they don't look like a Spark or any dopey looking subcompact with a barely usable 40-60 mile range is the other selling point.
 

·
Registered
Joined
·
19,265 Posts
Why would Tesla be "so screwed?"

Their mission statement IS NOT to make electric cars, as many people seem to think. Their mission statement is to change how the world thinks about electric cars.
"Tesla’s goal is to accelerate the world’s transition to electric mobility with a full range of increasingly affordable electric cars."

Tesla provides the technology and the batteries and the research to support that goal.

With competition, the winners will be the consumer.
Not to mention that I'd rather drive a Tesla than a Mercedes, Porsche, or Audi (probably would be a fan of the BMW) *******ization of a Model S or X.
 

·
Registered
Joined
·
19,265 Posts
The allure is that it is a very attractive and beautiful car that just happens to be electric.
I'll guarantee you, if Teslas looked like a Spark, it wouldn't sell.

Furthermore, it's the fact that they don't look like a Spark or any dopey looking subcompact with a barely usable 40-60 mile range is the other selling point.
See: Coda.
 

·
Premium Member
News Contributor
Joined
·
5,624 Posts
Discussion Starter · #11 ·
Additional Thought: Though I love Tesla, with what appears to be an oncoming onslaught, the only way they will survive in the car industry is for a larger company to absorb them as an additional division. Unless they're banking on the success of their Gigifactory to financially sustain them.
 

·
Registered
Joined
·
1,850 Posts
My guess is Tesla will wait for the others to catch up before making any improvements. lol

Tesla would be wise to team with a lux automaker for service, distribution, etc. I would think a struggling Lincoln could handle the volume and in turn it would provide Lincoln with more foot traffic. I don't see Musk going this route though...unless he is ready to sell out (Musk is market savvy and if he thinks Tesla is headed down he will bail on them and cash out).
 

·
Super Moderator
Joined
·
21,421 Posts
I've said it many times before. I'm not so sure Tesla's allure is it being electric. I think a big part of it is that it is a new brand, there aren't a million Tesla's on the road like there are BMW's, Merc's and Audi's. The uniquiness of Tesla is something that no existing make can copy.....
Tesla's allure is caused by the brand being "hip". It's trendy, cool, and desired, so people want to be seen in one.

They have a very high brand image and high brand cachet, despite being a very new entry. That's why they sell. Tesla is dying for new product right now. The brand is very strong, and when other Tesla cars hit the market, they'll be hot sellers, especially the Model 3.
 

·
Registered
Joined
·
2,791 Posts
Additional Thought: Though I love Tesla, with what appears to be an oncoming onslaught, the only way they will survive in the car industry is for a larger company to absorb them as an additional division. Unless they're banking on the success of their Gigifactory to financially sustain them.
I'm still waiting for BMW to go under. It too had to let itself be taken over by some company that can't run itself in order to survive.
 

·
Registered
Joined
·
1,850 Posts
Additional Thought: Though I love Tesla, with what appears to be an oncoming onslaught, the only way they will survive in the car industry is for a larger company to absorb them as an additional division. Unless they're banking on the success of their Gigifactory to financially sustain them.
Giga factory means Giga Overhead. That is the one thing that has made Tesla competitive is the lack of overhead and well spent R&D.
 

·
Registered
Joined
·
44,427 Posts
Additional Thought: Though I love Tesla, with what appears to be an oncoming onslaught, the only way they will survive in the car industry is for a larger company to absorb them as an additional division. Unless they're banking on the success of their Gigifactory to financially sustain them.

Yes. The general school of thought is that the only way to survive in the auto industry is to follow the industry-wide path to consolidation in order to gain further economies of scale.
3 brands have largely fought off that trend: JLR, BMW, and Honda.
They survive largely on strong brand and company reputation, all the while building in their own economies of scale and other efficiencies.

Tesla is on this track. Just because they are a young startup and have platy volume, doesn't mean they can't succeed on their own.

A lot of their future hinges on the Gigafactory and bringing down the cost of the battery. If they do manage to succeed, then they will have a nearly unassailable barrier to entry. While other brands will rely on the ICE-crutch, Tesla will be well on its way.

But let's also not forget that there are alternative technologies that are still being developed, like hydrogen, that may also ultimately compete with future Teslas.
 

·
Registered
Joined
·
44,427 Posts
Giga factory means Giga Overhead. That is the one thing that has made Tesla competitive is the lack of overhead and well spent R&D.
That's baloney.

The Gigafactory means that Tesla is becoming more vertically integrated. This has the added advantage of Tesla controlling the entire value chain and controlling the price of its products.
Vertical integration raises the barrier to entry for other car companies wanting battery technology, since presumably the Gigafactory exists to drive down the cost of the batteries. Without access to that specific battery technology, Tesla can undercut any competitor on the market.

So no, it's not overhead. It's a smart business move.
 
1 - 20 of 58 Posts
Top