While Tesla Suffers Model 3 Production Woes, Chevrolet Does Little To Persuade Reservation Holders22
The idea of converting every reservation holder of a Tesla Model 3 to another electric car simply will never happen, but some of them could be persuaded with a little direct marketing. Automotive News reporter Michael Wayland penned an opinion piece on Monday stating what seems obvious: Chevy should strike at Tesla while the iron is hot.
By that, it means Chevrolet could, and should, incentivize Model 3 reservation holders with a sweeter deal on the Bolt EV. Chevrolet could tack on additional incentives such as an extra $1,000 off, which is the same amount over 400,000 individuals pledged to secure a Model 3. Even if Chevy lost slightly more on a particular Bolt EV sale, converting a Tesla reservationist to Chevy could have brand building effects for years to come.
Steve Majoros, U.S. marketing director of Chevrolet cars and crossovers, admitted the brand had conducted early buyer research on Bolt EV owners to see if they were once interested in the Model 3. He did not provide details, but he did say the conclusions were “pretty interesting.” “You can imagine it was a pretty healthy number,” he added.
What do you think? Is Chevrolet not doing enough to sway potential Tesla owners? Let us know in the comment section below.
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Chevy is not only not doing enough to sway potential Tesla owners, it is also not doing enough to advertise the Chevy Bolt EV for all potential customers. So far, I have seen zero ads for the Chevy Bolt EV on television. Maybe there is a good reason for it, but I don’t know what it might be. The only thing I can think of is they don’t have enough battery supply to keep up with the potential demand TV advertising might do to sway potential Tesla owners and new owners.
Good idea for GM to stick it in to Tesla and give it a good twist at the same time. It would be nice to see Chevy take 50 or 100k sales away from Mr. Musk. Musk makes plenty of promises, but – thus far anyway – hasn’t delivered. I don’t think GM would have that problem.
So, Chevy, try a Beta-test in a state, or tri-state area that’s GM-friendly?
Just a thought. But please don’t make it ‘real people/not actors’ unless it’s done for real, not staged.
I don’t know who would rather have a butt ugly Bolt instead of any Tesla. Just my opinion and I know bowtie fan boy will roast me.
Me, I’d rather own a Bolt and do. I think the Tesla’s are ugly.
It’s an interesting question . Didn’t GM just slow production of the car recently to control inventory levels .
And in a recent article at Jalopnik claims GM isn’t making a ton of money selling these . Maybe GM thinks problems at Tesla are a long term thing and aren’t worried for now about any serious competition from them . And Buick is coming out soon with their own version of Bolt that may be looked at as the Model 3 competitor .
That is because people are waiting to say “I have a Tesla”, the next look at me item to buy.
Lol! Tesla – a four wheel Iphone!
We covered this a couple weeks ago here.
A good marketing deal would be to offer a lease to the 3 pre buyers.
What you could do is offer a lease to those with money down and run it till they get their car or two year what ever comes first. Also give them a buy option should they decide the want to keep it.
The number of sales are irrelevant but the PR is golden. Also you can take any conquest sales and market them too.
Very bad idea from a PR point of view. This would backfire badly. Best to focus on the customer and bring more EV’S to market that are sexier or just as sexy as the Model 3.
Honestly, I don’t think it’ll be easy to “persuade” Model 3 reservation holders. These people are clearly okay with waiting an unspecified (excessively long) amount of time, for a vehicle they know nothing about. One that, following in the footsteps of the Model S or Model X, will likely be put together like garbage and really not all that revolutionary – though they will deem it to be.
Those kind of people are nearly impossible to persuade, since the majority of their outlook on EVs is that Tesla is the best, no matter how much you prove them otherwise (not hard to do).
The Bolt is a fantastic little car – if a little funky looking (though, not ugly – and certainly not mind-numbingly boring – and oddly proportioned – like the Model 3). It’d be even better if they shoved that powertrain into the Volt.
Good point. I think Tesla fans are very much like Apple iPhone fans, very loyal, which is in part based on their leader’s aura, the product’s perceived prestige and it’s quality. Only a few would switch.
I agree it will not change many minds as a Tesla is more a religion than a company.
The Bolt is what it is due to meeting goals of cost and range. The 3 will never be sold as cheap unless it is gutted for a media price.
As we move forward a GM will answer the 3 and other models that Tesla may never get to.
The longer the 3 production is stopped or slowed the more cash Tesla burns through everyday and they need that cash badly to move forward.
Even if they survive the 3 issues they have lost 2 years or more of moving forwards they try to recover.
If the try to ramp up at a faster pace they may create even more problems for themselves.
The are trying to do a Semiand still have an X model to fix and S model to update as it gets old and loses sales to the less profitable 3.
Dear Scott3, Don’t forget the Model Y (budget version of the Model X) coming out next year. After thinking more about this and reading several articles (“UBS’s $41,000 Tesla Model 3 Break-Even Estimate Means Massive Continuing Losses…” from Seeking Alpha) on Tesla’s financial problems, even if the Model 3 is successful and they are able to fill all the supposed 400,000 orders and keep up sales of the Model S and X by the end of 2018 they will at best brake even which means they will continue to operate at a loss and not reap the huge profits Musk was expecting from the Model 3. They may be able to come out with their budget SUV Model Y if they continue to get bank loans and sell bonds, but if they continue to only brake even, that means they are still left with tremendous debt. After their Model 3 and Y has been out for a couple years say in 2020, there is sure to be another recession soon. What will happen to Tesla then? There is a huge difference between Tesla and Apple, Apple is making goo gobs of money. The only way Tesla is going to make it is if they figure out how to make their cars a lot less expensive to build in order to increase their profits which is possible according to the UBS report, “Q-Series UBS Evidence Lab Electric Car Teardown – Disruption Ahead?” which says the biggest EV sales will be coming from Europe and China.
Will see. Right now there is billions going out but even if production improves only hundreds of millions will be coming in.
Just to overcome the loses from this year alone will take more than a year and this is from a company that has been living on its yearly income only.
Discounted versions of present models may mov,e models but will cut into the more profitable models and not return the same profits.
The path forward is a narrow one.
I agree building cars is much different than building automobiles.
Tesla now is learning that while successful as a tech company that does not translate to mfg.
They have invested into a company to help with improving assembly but it may not have been done in time.
Tesla was shooting fish in a barrel but the future will become much tougher. Even the Elon hype will not continue to work and they need to have a better cash flow plan in place.
I see the latest on Tesla is that Musk is going to bet big on building trucks. Semis no less. If Tesla can’t get a handle on electric cars, I wonder what makes Musk think he can produce electric semis for 20% less than diesel semis?
Ego or BS. Elon has two modes.
Just like when Toyota had their “run away vehicles” scare. GM did nothing to sway potential buyers or people wanting to trade in their vehicles.
I remember I was looking buy a chevy at the time, but the brilliant minds at GM decided they weren’t going to offer incentives to sway people over. Instead all I saw was MSRP for everything. Maybe $1000 off. Laughable.
All the while, Toyota was doing everything to keep owners happy and potential buyers coming into the lots. offering a we messed up and buy a Toyota for $5000 off.
This is why GM will go bankrupt again. The hey people are unhappy with another brand, let’s just sit here and do nothing attitude reigns supreme. all the while crying why people don’t buy “American” anymore.
First GM is far from going bankrupt. Ford is closer to it but they will not go that road either any time soon.
Second the Toyota deal was different. Generally automakers will not attack each other over defects. They know al so well what goes around comes around.
Funny you don’t claim Toyota failed to attack GM when they had the ignition issues.
It is a competitive market and going after a automaker for not making cars is ok but if the have stuck throttles or bad ignitions you don’t go there. People could be hurt with one but no one ever died not getting their car.
I would wager that the 23 new electric cars on top of a whole new Cadillac line up along with the other new coming gas vehicles is cars short of sitting back and doing nothing.
After decades of building bad cars it takes time, investment and hard work
To bring people back. GM does not have the advantage of unhappy owners in crummy cars willing to look else where. They gave away a great advantage and discounting their way back is not going to do it.
People don’t buy American cars is not about looking for a discount it is about they are happy and loyal to this brand they are in now.