2018/09/25: why did not a single German automaker with all of its engineering capacity and billions of annual profits bring a single car on the road that can compete with a Model X, S, or 3 from Tesla?
People told me, “This is because they don’t want to do so, as the profits are made with their ICE cars, and with every EV, they lose money.” I understand this and believe that strategy makes a lot of sense. However, it creates a new question.
If this is the smart hidden strategy from the CEO of, for instance, BMW to maximize profits, how could he then allow Tesla to outsell BMW in the luxury premium segment? How could he allow them to sell more Model 3s than all of BMW’s passenger cars in the US combined? The same question is relevant for the CEO of Daimler, Audi, or Porsche.
It does not matter if VW does produce more cars, or if BMW has the i3 and i8 on sale and the iNext as a concept that is supposed to have a range above 400 miles in 2021. It does not matter if the e-Golf is selling well in Norway and Audi will start delivering the e-tron this year, or that the charging speed of the Taycan and e-tron is supposed to be faster than a Tesla Supercharger.
The only factor that matters is if the consumers do pay for a German EV or an EV from another brand like Tesla.
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This business case study describes the traditional dealership channel for retailing new cars, and provides data on how the dealership value chain was coming under attack in late 1999 from online buying services (OBSs) and others. The case presents detailed data on the economics of the traditional dealership by line of business: new-car sales; used-car sales; finance and insurance; and parts and service. It also provides background information on the general structure of the U.S. automobile manufacturing industry (including key aspects of how production planning is handled), and it describes how the overall auto distribution system works. Under that system, car- makers pump product into a highly fragmented and overcrowded network of dealers, who employ high-pressure sales tactics to move their inventory. Reacting to this unpleasant sales experience, more and more car buyers began to use OBSs to avoid haggling with dealers or to arm themselves with price and product information that helped them negotiate more effectively with dealers. Though relatively few consumers were actually buying cars over the Internet, the rate was growing rapidly, and new companies were aggressively seeking to establish the Internet as a channel. Based on the data presented in the case, readers can analyze the economic and market forces at play in the auto retailing business and assess how these will affect the traditional dealership channel.
Tesla may already be reaping the rewards of
The founder of the world's sexiest electric car company announced that he's opening up patented Tesla technology to anyone who wants it. But it only looks like philanthropy: what Tesla really wants is for other car companies to be more like them.
Tesla will not initiate patent lawsuits against anyone who, in good faith, wants to use our technology.Elon Musk, Tesla Motors Elon Musk has always been a rebel. Now he's an open source rebel.Fortune Magazine Stamattina ero lì che facevo colazione e alla radio viene fuori l'annuncio che mi ha fatto innamorare ancora un po di