Musk endeavours

[BobbyD]

What I think is going on is that nextmove are using social media to try and get Musk to overule the German senior/sales manage team. It will be interesting to see if that happens, and I hope it does not as it seems to me that the German managent team have made the right judgement call on this case at this time.

regards, dspp

This despite Tesla's claim that they didn't cancel the order?

[BobbyD]

Audi e-tron electric SUV becomes first battery-electric vehicle to get highest safety rating from IIHS

The Audi e-tron electric SUV is officially the first battery-electric vehicle to earn a “2019 TOP SAFETY PICK+ award from the Insurance Institute for Highway Safety” (IIHS).
The IIHS made the announcement today after releasing the crash test results:

“The e-tron, introduced for the 2019 model year, is a plug-in battery-electric vehicle with no gasoline or diesel engine to help power the car. The e-tron fulfills the criteria to earn a TOP SAFETY PICK+ award with standard equipment. To qualify for the award, a vehicle must earn good ratings in six crashworthiness evaluations, as well as an advanced or superior rating for front crash prevention and a good headlight rating.”

In 2017, Tesla Model S achieved a good score, but it failed to get the top IIHS crash rating.

The Chevy Bolt EV also achieved a “Top Safety Pick” from IIHS, but it wasn’t awarded the ‘+’ like the Audi e-tron.

- https://electrek.co/2019/08/14/audi-e-t ... ting-iihs/

[dspp]

So just to make sure I understand your point here dspp.

You are happy being invested with a company who feel it is OK to turn down an order for 85 cars on the basis that the customer (who is possibly your biggest single customer in Germany perhaps Europe) is insisting on a process that allows them to identify quality issues pre-delivery and payment so they can be rectified?

If this is correct does this sound to you like a company who seems to lack the will to improve and is chasing short term cash at the expense investments in process improvement in order to make more profit in the future?

John

I am happy being invested in a company that is making difficult decisions in a complex and fast-moving environment, and which is forcing a restructuring of at least one industry as it does so.

- dspp

[Howard]

So just to make sure I understand your point here dspp.

You are happy being invested with a company who feel it is OK to turn down an order for 85 cars on the basis that the customer (who is possibly your biggest single customer in Germany perhaps Europe) is insisting on a process that allows them to identify quality issues pre-delivery and payment so they can be rectified?

If this is correct does this sound to you like a company who seems to lack the will to improve and is chasing short term cash at the expense investments in process improvement in order to make more profit in the future?

John

I am happy being invested in a company that is making difficult decisions in a complex and fast-moving environment, and which is forcing a restructuring of at least one industry as it does so.

- dspp

As an investor, it’s important to recognise that there are different factors which drive success for large and small businesses.

As an MD of a small business, you can probably afford to upset a few customers who demand the highest standards on the basis that you can find business elsewhere. You may not be subject to the scrutiny which affects a large business and you can probably get away with a few service problems.

From my previous experience of running a large operation with hundreds of thousands of customers and potential customers making more than a million phone calls to us a year, one really had to concentrate on getting the highest quality service for all customers. Yes, there were occasional problems but they were quickly communicated to senior staff and solved immediately to the customer’s satisfaction. We tried to excel at service and in that way we generated loyalty, more than 95% of our customers purchased again over the many years I ran the operation. That led to sustainable profits.

It’s vitally important for senior management to “walk around” a large operation and talk to front line staff. They are the people who know immediately if there is a service problem. (And usually have a good idea how to solve it.) And it is not a good idea to “shoot the messenger” if they report a problem.

The reputation of a large business is paramount. We used to pick up valuable customers from competitors who let their standards slip. And they weren’t as slipshod as Tesla!

In the competitive environment that I was used to one had to set a high standard and, indeed every member of staff, was motivated and proud to work for a high quality company. I would never dream of copying Elon Musk’s behaviour in immediately firing employees who didn’t give him the right answer. This behaviour won’t create the success Musk’s investors are hoping for.

Customers ordering millions of dollars of product, especially when they are acting as brand ambassadors for the company, must be handled professionally and any product defects must be rectified immediately. The type of problems identified by the boss of the German rental firm were inexcusable - how could any quality company let that situation develop the way it has?

Tesla aren’t growing fast enough to re-structure an industry. In producing sub-standard cars, they are conceding the quality high ground to their competitors and giving them time to develop superior products. It could be argued that the re-structuring of the car industry is being led by politicians, regulators and, perhaps even a 16 year old girl.

Maybe a better investment is VW? Over the last three years their shareholders must be more satisfied with their performance than Tesla. Time will tell.

regards

Howard

[odysseus2000]

Howard
Tesla aren’t growing fast enough to re-structure an industry. In producing sub-standard cars, they are conceding the quality high ground to their competitors and giving them time to develop superior products. It could be argued that the re-structuring of the car industry is being led by politicians, regulators and, perhaps even a 16 year old gIrl.

Politicians & regulators & 16 year old girls have made how many cars?

The status quo in the car industry pre-Tesla was that the politicians & their appointed regulators were in a deep complacent relationship with the ice makers.

GM made electric cars, then took them back literally with court orders & broke them.

All big legacy auto was doing as little as possible, giving various sops to the politicians & telling them how clean their cars were whilst deliberately cheating on emissions. Meanwhile they were telling any politician ignorant enough to believe them that the future was hybrids & hydrogen & they all had pilot programs to show how they were really keen on these evolutionary dead ends.

Whether you like or hate Tesla they are the company that has made the transition to BEV the clear evolutionary path forward & all legacy auto is now stuck between wanting all the profits they can have from ice sales & loathing the forced need to crawl as slowly as possible to BEV.

As any new business crawls upwards their are growing pains. One can not argue based on the experience of mature industries that it is all about service, as it clearly is not. It's about performance, price & reliability.

Legacy auto can have the best service, the best dealer network, the best call centres etc, but if they haven't got what punters want it counts for very little.

Regards,

[BobbyD]

As any new business crawls upwards their are growing pains. One can not argue based on the experience of mature industries that it is all about service, as it clearly is not. It's about performance, price & reliability.

Then Tesla are screwed. They may have paper performance, but they are expensive and unreliable...

[Legacy auto can have the best service, the best dealer network, the best call centres etc, but if they haven't got what punters want it counts for very little.

You literally just said it was about service...

[odysseus2000]

Tesla solar new rental scheme:

https://cleantechnica.com/2019/08/16/te ... tal-plans/

The advantages of solar with a rental & no cancelation fees comes to roof tops around the world.

Regards,

[BobbyD]

Speaking of doing things differently:

Amazon delivered the first of 65 "Final Edition" Volkswagen Beetles on Saturday. The vehicles are being sold exclusively by Amazon Mexico after VW wrapped up production of its legendary car in Cuautlancingo, Puebla state, last month.

The Beetles are being delivered in special custom boxes to their new owners.

One of these owners is car collector Joaquin Jasso, who told news website Expansion that it was "very simple, it took me barely three minutes to buy," the $21,000 vehicle.

- https://www.dw.com/en/amazon-delivers-v ... a-50067148

Perhaps delivery is something Tesla should outsource to professionals so they can get on with making cars?

[BobbyD]

Porsche drives Taycan electric car at high speed for 3,425 km (2,128 miles) in 24 hr endurance test

- https://electrek.co/2019/08/19/porsche- ... ance-test/

Not shoddy.

[BobbyD]

Why Tesla should reconsider its stance against heads-up displays

- https://mashable.com/article/heads-up-d ... urope=true

[Howard]

Walmart sues Tesla.

This Tesla quality problem looks a bit more serious than the German rental company issue.

Tesla will have difficulty shrugging off a company the size of Walmart if, as alleged, their products really have caused fires at seven Walmart stores.

Again this looks like sloppy quality control by Tesla.

"Walmart claimed, among myriad complaints, that “Tesla routinely deployed individuals to inspect the solar systems who lacked basic solar training and knowledge.” In the suit, they also alleged that Tesla failed to ground its solar and electrical systems properly, and that Tesla-installed solar panels on-site at Walmart stores contained a high number of defects that were visible to the naked eye, and which Tesla should have found and repaired before they led to fires."

As I have posted before, there appears to be evidence that senior management at Tesla are not in touch with their front-line quality problems. This lack of attention to detail could hurt the company's reputation further. And being forced to remove Solar Panel installations from 240 stores is a bit humiliating.

https://www.cnbc.com/2019/08/20/walmart ... tores.html

regards

Howard

[BobbyD]

As I have posted before, there appears to be evidence that senior management at Tesla are not in touch with their front-line quality problems. This lack of attention to detail could hurt the company's reputation further. And being forced to remove Solar Panel installations from 240 stores is a bit humiliating.

Last week Musk was shocked to discover that Tesla have been moving from providing loan cars to customers whose cars are in the shop to rentals or uber credits.

Being sued by a long term partner doesn't seem like a good idea, I guess Walmart have joined the FUD conspiracy.

[odysseus2000]

Interesting bear take on the solar panel fires at Walmart:

https://youtu.be/WzpXyNNZg38

Regards,

[Howard]

Tesla solar new rental scheme:

https://cleantechnica.com/2019/08/16/te ... tal-plans/

The advantages of solar with a rental & no cancelation fees comes to roof tops around the world.

Regards,

This announcement seems strange, given that Tesla knew that Walmart were suing them for the fires on their store roofs. One wonders whether consumers are going to be persuaded to rent.

Presumably Tesla are going to say that they have improved their service and their current panels and installations are safer. It will be interesting to see whether insurers are relaxed about Tesla solar installations.

regards

Howard

[BobbyD]

Tesla solar new rental scheme:

https://cleantechnica.com/2019/08/16/te ... tal-plans/

The advantages of solar with a rental & no cancelation fees comes to roof tops around the world.

Regards,

This announcement seems strange, given that Tesla knew that Walmart were suing them for the fires on their store roofs. One wonders whether consumers are going to be persuaded to rent.

Presumably Tesla are going to say that they have improved their service and their current panels and installations are safer. It will be interesting to see whether insurers are relaxed about Tesla solar installations.

regards

Howard

The other boot which was supposed to fall there was the the $1500 cancellation fee...

[odysseus2000]

Tesla solar new rental scheme:

https://cleantechnica.com/2019/08/16/te ... tal-plans/

The advantages of solar with a rental & no cancelation fees comes to roof tops around the world.

Regards,

This announcement seems strange, given that Tesla knew that Walmart were suing them for the fires on their store roofs. One wonders whether consumers are going to be persuaded to rent.

Presumably Tesla are going to say that they have improved their service and their current panels and installations are safer. It will be interesting to see whether insurers are relaxed about Tesla solar installations.

regards

Howard

The other boot which was supposed to fall there was the the $1500 cancellation fee...

No, it is a removal fee, not a cancellation fee.

Regards,

[BobbyD]

This announcement seems strange, given that Tesla knew that Walmart were suing them for the fires on their store roofs. One wonders whether consumers are going to be persuaded to rent.

Presumably Tesla are going to say that they have improved their service and their current panels and installations are safer. It will be interesting to see whether insurers are relaxed about Tesla solar installations.

regards

Howard

The other boot which was supposed to fall there was the the $1500 cancellation fee...

No, it is a removal fee, not a cancellation fee.

Regards,

...and therefor has to be paid when you want to cancel the contract...

[odysseus2000]

The other boot which was supposed to fall there was the the $1500 cancellation fee...

No, it is a removal fee, not a cancellation fee.

Regards,

...and therefor has to be paid when you want to cancel the contract...

Yes, but there is no cancellation fee.

Most other rentals are for a fixed period & if you cancel before the end of the contract you will have to pay a cancellation fee.

Regards,

[Howard]

Electrek are beginning to sensibly report on the competition in the EV market. Like us all they are trying to guess at what the future holds.

Has Fred been reading our comments on this site? If you look back some of us have made virtually the same statement a week or two ago.

https://electrek.co/2019/08/21/electric ... on-engine/

He writes "I think this more aggressive approach by Volkswagen, which has arguably been forced onto them after the Dieselgate fiasco, will prove successful and could influence other automakers to do the same."

Can I add: "Forget about engineering minutiae and daft features. Make a quality product which delights the average customer and meets their needs for sensible motoring with a price range which starts at around £30,000. Offer VW quality sales and service and you have a winning formula for a BEV which will compete with ICE models and sell in volume around the world." Maybe Fred will be writing something like this soon.

regards

Howard

[dspp]

Indeed VW / VAG are one of the more likely survivors, ironically courtesy of dieselgate.

However they do have a problem and that chart illustrates it, and everyone shares the same problem. VAG are converting one factory to EV production, of 300,000 cars per year, and plan [that factory] to be fully converted by 2021. So clearly they are lining up the battery capacity to support that. Unfortunately VAG produce about 11 million cars/year.

Globally cars are about 70 million/year, and commercial vehicles 20 million/year.

This is going to be a long-haul changeover. However being a laggard in that process, at the point when ICE vehicles are worse than the comparable EV, is going to be a real "burning platform" moment. For some vehicle types, in some countries, that moment is now (I'm thinking Norway, or the upmarket sedans in the USA).

regards, dspp