Tesla has a huge manufacturing advantage and most other automakers are too “asleep at the wheel” to realize it – and they won’t until it’s too late.
Manufacturing will be Tesla’s long-term competitive force
– Elon Musk (@elonmusk) October 2, 2021
Volkswagen is starting to wake up – it may still be too late
I will paraphrase what has been heard about the VW Group and share some of my findings afterwards. This was according to various BI sources:
According to BI sources, Herbert Diess and brand CEO Ralf Brandstätter brought together the 120 senior Wolfsburg executives on Thursday for a crisis meeting.
Diess said that compared to Tesla and Chinese manufacturers, VW is overpriced, slow and with low uncompetitive productivity.
– Alex (@alex_avoigt) October 1, 2021
According to BI sources, Herbert Diess and brand CEO Ralf Brandstätter have called a crisis meeting with the company’s 120 senior executives on Thursday, 08/30/2021.
Diess said the following:
Compared to Tesla and Chinese automakers, VW is overpriced, slow, unproductive and uncompetitive.
We must resume the “fight against Grünheide”
If everything stays as it is, VW will no longer be competitive.
We have a great responsibility for this site. We need to embrace the new competition.
It is urgent that a new course be drawn in Wolfsburg. Future competition with Tesla’s new Giga factory will be brutal. The electric car pioneer sets new standards in automotive production.
A Model 3 is built in 10 hours, more than 3 times faster than a VW ID.3 in Zwickau. This puts Tesla in another dimension in terms of productivity and profitability.
We need a will to live and a start on the site.
Trinity must bring the site to a new competitive level, must revolutionize it. Also with new processes.
Note that the board says the project designs so far don’t go far enough.
Diess also said:
At the end of the day, it’s also about the jobs we have here. Mr. Diess or the Supervisory Board or the staff representatives do not decide on the positions. It’s the customer who decides, and the customer buys the product that offers more quality, more functionality for a better price.
That is why we must fight, attack and not let Grünheide ruin our location.
I’m not sure VW can catch up with Tesla
There is something very real about life, progress, and getting results. And that’s all you encourage that will happen.
What is the incentive for Diess, the CEO of VW, and the members and executives of Volkswagen to innovate with extreme urgency? I would say there is no incentive in place, otherwise they would now. There is not enough reward in place to bring about the change.
The same is true with other car manufacturers. If there really was an incentive to innovate and high rewards for doing it, then these companies would.
There’s a reason Elon Musk delivers and gets such great stock options based on performance goals related to increasing market cap, income, profit, etc. of Tesla … Because if he succeeds, he is rewarded. It is a very simple system.
I highly doubt that another CEO of another automaker has a rewards program with stated goals of growth and market capitalization like Elon Musk does. This is one of the many things that are done differently by Elon Musk and Tesla.
Tesla’s Manufacturing Advantage
Tesla has a strong manufacturing advantage. The fact that a Model 3 can be manufactured 3 times faster than a VW ID.3 is astounding. What about a Model Y, which can be manufactured even faster than a Model 3 with front and rear castings?
What about the new Giga factories going online and the $ 25,000 Tesla Model 2 coming out?
I’ve read articles about VW’s plan to overtake Tesla in 2026 with a project called Trinity. Well where is he? Where will Tesla be in 2026? What are the odds that VW will magically overtake Tesla when the only game in town is electric vehicles?
Tesla will continue to improve manufacturing because it’s their culture. They innovate with extreme urgency and no other company can follow.
What do you think of Tesla’s manufacturing – do they have an advantage? Is Elon Musk’s compensation package the reason Tesla is successful?
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Jeremy Johnson is an investor and supporter of Tesla. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. He has since grown into a Tesla Bull, covering everything he can find on Tesla, while also taking an interest in other EV companies. Jeremy covers Tesla developments at Torque News. You can follow it on Twitter, Facebook, LinkedIn and Instagram to stay in touch and follow her Tesla news coverage on Torque News.