Tuesday, May 13, 2014

Mercedes and Cadillac take different approaches towards Tesla

In a recent interview with AutoBlog at the New York Auto Show, a Daimler (Mercedes) executive was gave a quote on how Mercedes will deal with the competion with Tesla Motors. 

He claimed Tesla has no network" and only offers "little shops that don't have service capacity. "Tesla is great, but you've got plenty of well-established brands that mean luxury."


To me, this quote shows ignorance, and the companies refusal to except Tesla as a competitive product. Tesla is known famously for it's immense network of superchargers all over the country. It has a non-traditional set-up for service centers due to the fact that the car is run by computers that can be fixed remotely by engineers. 

Are Tesla's not worthy for the market because they don't have a well-established brand? Just because a company has been around for awhile doesn't mean it will always make quality products, and just because a company is new doesn't mean it can't. Tesla outsold all the competition in it's class this last quarter, including the Mercedes E-class, Audi A6, and BMW 5 Series. 

Cadillac is taking a much smarter approach to the new competition. An executive from GM stated that Tesla offers "a great opportunity and a learning exercise for all of us, and will help us traditional manufacturers to think twice about electric mobility.

By noting the successful qualities of Tesla, other companies can improve themselves. It is speculated that the success of the Model S prompted the earlier than expected developement of Cadillac's own electric luxury vehicle, the ELR. 

By not choosing to simple ignore new competition, I think that Cadillac will see greater success than Mercedes in the coming years.

Do you think Mercedes is right to think that Tesla will fizzle out and not be a threat to the company, or do you think they should pay attention to them?

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