Healthy Competition for German Auto Makers

[ron_b]

A side discussion on impact of Tesla on German Auto Industry. I agree that healthy Competition is a good thing, however, is it healthy?

I am hoping folks who live closer to it can comment.

I read that Tesla bought the company that provided batteries for the EQC.

https://europe.autonews.com/automakers/daimler-says-no-battery-bottleneck-eqc-electric-crossover

Daimler's works council chief Michael Brecht told Manager Magazin that one of the reasons the company is struggling to meet battery demand is because Tesla bought Grohmann Engineering, a battery automation specialist hired by Mercedes to build up its own battery manufacturing capacity.

Also related to Tesla apparently getting subsidies from Germany to build their Gigafactory?
Tesla to Build Factory in Germany After Subsidies Announced
And
FCA, Tesla Strike Emissions Deal That Could 'Effectively' Pay for Berlin Gigafactory

I am not anti-Tesla, I would just like to have more than 1 EV manufacturer. I am not sure Tesla has a similar belief.

I am really curious if it's believed the German government is doing the right thing here?

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[epirali]

Why do you think its a bad idea? Battery supply has been an issue and Tesla had to end up building a plant. If they have excess they can sell to other companies.

 

[Reg]

Also Mercedes tried to kill Tesla by first buying and forcing and then selling at difficult moment. Neither worked so now bad blood...... Sadly kind of normal behavior in a competitive business......

I believe it was just the opposite. Mercedes invested in Tesla at a very difficult time providing much needed cash. The partnership also provided a lot of expertise to Tesla. Due to competition, Mercedes later sold their stake in Tesla (making a $700M profit). Selling their shares had no impact on Tesla since they were public and they just sold their shares in the open market. Later Tesla even provided the electric powertrain for a B-class car.

 

[Reg]

I read that Tesla bought the company that provided batteries for the EQC

...

Also related to Tesla apparently getting subsidies from Germany to build their Gigafactory?


...
I am really curious if it's believed the German government is doing the right thing here?

Mercedes and plenty of other OEMS also had the opportunity to buy that company and probably could have easily outbid Tesla. For whatever reason they decided not to, so it is odd that they would now complain that they are missing expertise. Besides, that acquisition was over 3 years ago, so it isn't as if there wasn't time to develop alternatives.

As for subsidies, I expect that Tesla isn't the only ones that got some sort of government help.

 

[DeciusCaeciliusMetellus]

Also Mercedes tried to kill Tesla by first buying and forcing and then selling at difficult moment. Neither worked so now bad blood...... Sadly kind of normal behavior in a competitive business......

That's plain and simply wrong. This was in the aftermath of the Great Recession and it saved Tesla from bankruptcy.

To quote Musk:

We were saved by Daimler

https://www.tesla.com/blog/strategic-partnership-daimler-acquires-stake-tesla
https://www.digitaltrends.com/cars/elon-musk-daimler-not-the-government-saved-tesla/

 

[Scandinavian]

A side discussion on impact of Tesla on German Auto Industry. I agree that healthy Competition is a good thing, however, is it healthy?

I am hoping folks who live closer to it can comment.

I read that Tesla bought the company that provided batteries for the EQC.

https://europe.autonews.com/automakers/daimler-says-no-battery-bottleneck-eqc-electric-crossover



Also related to Tesla apparently getting subsidies from Germany to build their Gigafactory?
Tesla to Build Factory in Germany After Subsidies Announced
And
FCA, Tesla Strike Emissions Deal That Could 'Effectively' Pay for Berlin Gigafactory

I am not anti-Tesla, I would just like to have more than 1 EV manufacturer. I am not sure Tesla has a similar belief.

I am really curious if it's believed the German government is doing the right thing here?

This is so wrong! Grohmann never produced any batteries!
They are an automation robotics company! And Tesla acquired them in 2017, so surely a company like Mercedes would have alternative robotics supplier if needed?

Yes competition will be very healthy for the Germa car companies. They need it! Just look at the advance that BMW had when it launched the i3 and now they are so FR behind. And strongly arguing against EVs?? Too much investment in ICE engines?

 

[ron_b]

I had no particular agenda here just a topic related to EVs from Germany.

More Related news on LG which is the current supplier for the Taycan battery.


Ekectrek: LG reportedly threaten to cut VW’s battery cell supply for EVs over gigafactory plans

PV Magazine: Tesla gigafactory orders see LG Chem supplant BYD as third biggest global battery supplier

Ekectrek: Tesla makes battery supply deal with LG for Chinese Gigafactory 3, report says

 

[charliemathilde]

I had no particular agenda here just a topic related to EVs from Germany.

More Related news on LG which is the current supplier for the Taycan battery.


Ekectrek: LG reportedly threaten to cut VW’s battery cell supply for EVs over gigafactory plans

PV Magazine: Tesla gigafactory orders see LG Chem supplant BYD as third biggest global battery supplier

Ekectrek: Tesla makes battery supply deal with LG for Chinese Gigafactory 3, report says

VW is going to have to unravel that knot. They can’t stay dependent on LG Chem. That’s giving one supplier an insane amount of leverage. Also seems unnecessary. Batteries are a commodity. I hear Panasonic feels Tesla doesn’t treat them very well ....

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