When a small (yet growing) company like Tesla can outsell the $39,145 Chevrolet Volt with the $69,900 Model S, you’ve gotta give credit where credit is due. But it’s more than just a sales numbers game, as Tesla’s innovations allow its vehicles to swap out a depleted battery for a new one in just 90 seconds, plans to install supercharging stations nation-wide, and is in pursuit of manufacturer-owned dealerships. With all of this forward-thinking, General Motors CEO Dan Akerson has noticed what Elon Musk is doing, and as a result, assigned a small team to study Tesla so the company can learn from the smaller automaker, and won’t be caught off guard in the future.
In a Bloomberg interview, Steve Girsky, GM vice chairman, said, “History is littered with big companies that ignored innovation that was coming their way because you didn’t know where you could be disrupted.”
At the very least, it all ties in with Akerson’s desire to continually change the internal culture of General Motors, pushing for more meaningful spending in the R&D department by monetizing or using more of its patents, or even investing in smaller businesses developing new technologies.
Comments
This is not a case of ingenuity. The fact is Tesla has done a hell of a marketing job and has turned many into fans of this car some how.
GM could build a car like this easily but the truth is they never thought they could sell it and for the price Tesla gets. Lets face it the car is not $69K as once you add the needed options most are pushing or over $100K.
There is no secret technology to this car as it get the same range as most other have with the same batteries. Also the car gets the same performance many electric cars would get with the same motors.
Now look at the reality here Tesla has become a major thing with tech people and web people. Musk has taken peoples imaginations and thoughts captive with his speeches and promotion of the car.
It is almost like he has started a cult of follows for this car as you read on other sites owners and non owner fans alike spew things about him and the car like he invented a cure for Cancer.
While I do not hate the car it is a nice car but for that price I have better things to buy and better ways to spend my time vs. waiting for a battery to charge. Whole Musk is promoting battery swaps and charging stations there is still a lot of work to do.
The greatest failure of the Volt is the promotion of it to the right people. It was tossed to the general public and it has done ok but there is a segment out there that Tesla and the Prius has tapped that have become loyal followers. Diciples if you like as they have not only taken to the car but have gone out and preach the faith in the car. I do not mock religion here but some have almost made these product base a religion.
GM almost had it at Saturn at the start till they left the division rot with no new product. People were excited about the car and preached the word of Saturn. This is what GM needs to capture.
The only strong voice at GM on the Volt was Bob Lutz but since then who has really spoke out for the car and where has GM really targeted those who are receptive to this kind of car.
The big thing is it is easy to build a car like the Tesla if you can sell it for near $100K but to sell one for $32K it is difficult if you want to make money.
GM needs to learn this with the ELR and apply more things to this car to attract the kind of people that will be excited to spend that much on a car like this. Now if they leave it as a nicer Volt it will fail in the long run as leather and awesome styling only get you so far. Like a knock out movie star she may be great when she is young as her looks will carry here. As age takes it’s toll she had better know how to act very well as Hollywood will forget her fast otherwise.
I think GM could do a full eclectic at Cadillac like the Tesla and do well with it. I know they know how to build it but will they ever understand how to sell it.
GM is only losing money they could make now but if Musk figures out how to sell a Tesla like this at $25K he will put a major hurt on everyone.
First let me say great comment Scott.
Musk has set a goal for Tesla “they wont stop until they can mass-produce an electric at a price anyone can afford”, He feel that would be $35K. This is why he has set a deadline for the middle of the year 2016, this is when he feels that a $35K fully electric car will begin to be sold. He has said he feels that Tesla can innovate a battery that is cheep enough to mass produce and still keep a range of about 200 miles per charge & cheep enough to make a profit.
If GM doesn’t want to stay behind it truly need to get a team together to make the “best electric car money can buy” with the technology that is available today, then strip it down peace by peace and figure out how to make each part less expensive and of higher quality. Then and only then will they ever have a change to stop Tesla or expect to compete with them.
The problem is that the Voltec powertrain utilizes an ICE; something that can stain the image of GM as being too reliant on gas engines. The Voltec system is great for the present, but it will eventually be out-gunned by EV’s; a day that is soon coming.
What gets me is how Tesla made a go of instead of just fissling with a repurposed Elise after a few year. It seems now that you can’t keep people from investing in Tesla. I ask why GM couldn’t do with Cadillac and EV powertrains? Why is the only EV to come from GM the Spark EV, a car that will have limited availability for the first MY? Why couldn’t GM lead in this segment rather that hold onto Voltec and it’s forthcoming replacement?
When the Tesla lux-compact arrives, it’s price will hurt all in that segment, even the ATS. That, and it’ll also render the ELR meaningless.
Interesting times ahead for Cadillac and Tesla.
There is no problem with the ICE as it is the only Electric that you can drive cross county in less than a week. It is a car that someone can own and use as a only car daily and drive city to city. Now once faster charging and better batteries come they can remove the engine.
For me the Volt is the first electric car I could live with.
Note that if you investigate most Tesla owners they are wealthy and generally have a SUV or larger gas car that they fall back on. Most times the Tesla is a 3rd or 4th car in their fleet.
GM could build a car like this but one they could not do it at the price of the Volt and second to be honest few people ever thought Tesla would pull it off. This is why Dan has interest as this would be a low volume but highly profitable deal for GM. It would not be hard for them to do as all they need to do is remove the Engine and add more batteries in a more upscale vehicle. There is no reason they could not take a Alpha and remove the drivetrain and replace it with a full electric system that is as good or better than Tesla. Add some weight savings items to the car and there you go. GM could have one on the road in 4-5 years and that is no longer than any other gas car if started now.
The real key is marketing. If GM were to do this they would need to generate the marketing and internet chatter that has played up the Tesla.
The bottom line is there is nothing any more special about the Tesla than any other electric car than it looks great and had a lot of marketing to attract up scale buyers.
One has to keep in mind Musk has the internet well figured out in how, when and where to use it. GM is still trying to figure it out by changing marketing firms yearly.
The Tesla will not really hurt the ATS but it will challenge the ELR unless GM really markets the positive clearly on the car. If they do not promote how you can drive farther in one day they will be in deep do do .
GM would LOVE to see Tesla succeed so that the General can open its own stores.
My blog on this subject: http://blogs.strategyanalytics.com/AMCS/post/2013/02/21/The-Model-S-is-shaking-up-the-automotive-industry-but-not-in-the-way-you-think.aspx
Hey this is simple, the Big Automakers need to orchestrate a tragic accident with the Tesla and public sentiment will seal the coffin through social media. You know, much like one wanky journalist proclaiming Apple Inc. cannot innovate and the stock loses 35% of his market share or Toyota carpets getting stuck on accelerator pedals, etc.. It speaks in volumes about our American Culture LMAO. Destroying reputations is easy in the good old USA.
The Model S is freaking awesome… but expensive. However, idk how the ELR stays relevant as essentially a rebadged 2 door Volt when you could have the smaller capacity battery Model S.
Manufacturer owned dealerships would be a more efficient allocation of economic resources and lead to more uniform pricing, but there is such a vested interest in not allowing that to happen I don’t know how they overcomes the legislative hurdles.
“2 door Volt ”
Volts are only available as sedans, so in practice, the ELR isn’t a rebadge of anything.
They share a similar powertrain (with component differences) and the same platform, as do many other cars in the auto industry, but the ELR and Volt are not “rebadges” as their bodystyles are completely different.
If you want rebadges, look no further than the BRZ, 86GT, and the FRS. Those cars are complete rebadges with no variation in bodystle or powertrains, unlike the ELR and Volt.
As long as tesla stays in the 100k area then GM will not have to worry about tesla!
Tesla has the vision GM lacks, Tesla cars have the looks and performance necessary to satisfy the needs of the niche these cars are aimed at. Volt has been a flop from the get go, too late to the game and offering less than vehicles preceding it from other manufacturers, including but not limited to Tesla.
Too see other cars outselling Volt is expected, too bad GM lacks the vision to create a car that would offer a selling point.