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Audi is a sore loser: "Audi Responds to Report About Tesla Model S Beating its A8's"

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According to this article, Audi has been eyeing Tesla for awhile so maybe that's why they wanted to respond. The article is very old, June 30,2010.

http://www.thetruthaboutcars.com/2010/06/will-audi-put-tesla-out-of-business/

Reminds me of this article from 2009 from - you guessed it - Dan Neil, who predicted that the likes of Audi would step in and quickly surpass Tesla:

Audi e-tron: Taking the e-train - Los Angeles Times

Picture this: Elon Musk and Henrik Fisker -- impresarios of the electric Tesla Roadster and the soon-to-be, sort-of-electric Fisker Karma, respectively -- are running for their lives through a cave. Rolling behind them, gathering momentum, thundering ever closer, is an enormous boulder.

"Look out, Henrik!" "Save yourself, Elon!" Cue the John Williams soundtrack.

Can Elon get out of the cave in time? Will Henrik manage . . . Splat! Oh no! Look at the blood! There's rich guy everywhere!

I just spent a few minutes driving the boulder.

The Audi e-tron -- a spectacularly cool and highly evolved prototype of an electric sports car due from the German giant at the end of 2011 -- may not be the car that crushes California's bold pioneers of electric mobility.

But what it represents could.

In the next couple of years, globe-striding automakers such as Nissan-Renault, Mercedes-Benz, VW Group, GM and Ford will begin cranking out tens of thousands of electric cars. Not just small electric city cars and mid-size family sedans (like GM's Volt and Nissan's Leaf) but powerful, dead-sexy sports cars.

The Audi e-tron, whose only shared component with the look-alike Audi R8 are the halfshafts, will at some point have company in the luxury electric sports car segment in the form of Mercedes' electric-version SLS gullwing (and no, I never thought I'd be writing those words).

This armada of electron-burners will not be diffident, underbaked beta-testers. No asterisks they. These will be -- they have to be -- fully fledged Nissans, Mercedes and VWs, built to these companies' exacting standards and sold at a price that economizes their global scale.

"Do you hear something, Elon?"

"Don't be silly, Henrik. It's just the wind."

Let's stipulate that Tesla and Fisker are fine companies with great people and ideas, and a not-inconsiderable $1 billion in public money between them. Both companies' business plans call for using the glamour of a sporty halo car (the Tesla Roadster and Fisker Karma) to build brand cachet and help fund development of more attainable, real-world cars: Tesla's Model S and Fisker's Nina.

While the majors were sitting on the sidelines, these electric car wildcatters could reasonably expect success.

But now the majors are coming fast. And the Audi e-tron, which took Ingolstadt all of nine months to build, insists that we reconsider the viability of these low-volume upstarts in light of their highly resourced imperial competitors.

First-year production of the 2012 model year e-tron (perhaps called R8e?) will be limited to a mere 100 cars; as for out-the-door sticker, nobody really knows. A good guess is between $160,000 and $200,000.

"Do you think the natives are friendly, Elon?"

"Absolutely, Henrik. They invited us for dinner."

Nine months? If I were in the electric sports car business, the e-tron would make me drop a toaster into my bathwater. While it's often said the big organizations are slow and unresponsive, it's also true that big organizations can achieve amazing things by dint of board management fiat.

Predicting their demise is not the same as wishing for it, and I do hope that Fisker and Tesla survive and thrive. I just don't see how. Ironically, the explosive growth in the e-car market might be the very thing that does them in.

As they say, the pioneers get the arrows.

It's pretty funny reading it today. 3 years later and all we have are a bunch of canned projects and 80-mile city cars.
 
There is too much internal resistance for the legacy automakers to switch in time. Tesla will have huge market share before they realize what's fully happening.

"Do you hear something, Elon?"

"Don't be silly, Rolo. It's just the wind."

Don't underestimate the cash that OEM's can throw at this problem. If the CEO's of these companies come to their senses and decide to go full steam ahead, they can catch up really quick. Actually, I wouldn't be surprised if they have research on the back burner and they're buying an occasional EV to take apart and learn. I'd be shocked if GM didn't do exactly that by now.
 
It is not the learning they lack, it is enthusiasm.
Every EE knows what makes EV tick, very few of them have the slightest idea how to sell them.
Before Audi makes a good EV they would have to fire all their exhaust-tuners and rumble-lowers that know very well what a good ICE car is and just cannot imagine what a good EV is. They are not an asset anymore, they are liability.

How many big HDD makers are big in SSD market? (N)one?
 
Several things must happen here (in order of increasing improbability):

  • board decides to go all-in on that EV thingy
  • overcome reluctance of dealer networks to sell these cars
  • educate customers on advantages of an EV that will be at a disadvantage to the conventional ICE of the same car maker, be it range, price, size, cargo volume, charge time, you name it.
 
HAH - apparently Audi deleted their own press report on their blog!! LOL!!!! http://www.greencarreports.com/news...success-deleted-press-release-seems-to-say-so

I can just see the internal conversation:
"Frans, I saw our blog post today."
"Yah, Karl, I don't get it. This Tesla company, they get way too much attention, and the Americans are getting all the facts wrong in their media."
"Well, you know, Americans have been getting their facts wrong in the media for a long time. I did have one question for you, though."
"What is that?"
"Why are we blogging about the competition on our website? How does that sell our cars?"
"That point is good. We should delete it straight away, Karl."
<next day>
"Oh no, Frans, the Americans noticed we deleted the blog post, and now that is also news!"
"Should we put it back?"
 
I can just see the internal conversation:
"Frans, I saw our blog post today."
"Yah, Karl, I don't get it. This Tesla company, they get way too much attention, and the Americans are getting all the facts wrong in their media."
"Well, you know, Americans have been getting their facts wrong in the media for a long time. I did have one question for you, though."
"What is that?"
"Why are we blogging about the competition on our website? How does that sell our cars?"
"That point is good. We should delete it straight away, Karl."
<next day>
"Oh no, Frans, the Americans noticed we deleted the blog post, and now that is also news!"
"Should we put it back?"

LOL! Every swing of the shovel takes you deeper...
 
I can just see the internal conversation:
"Frans, I saw our blog post today."
"Yah, Karl, I don't get it. This Tesla company, they get way too much attention, and the Americans are getting all the facts wrong in their media."
"Well, you know, Americans have been getting their facts wrong in the media for a long time. I did have one question for you, though."
"What is that?"
"Why are we blogging about the competition on our website? How does that sell our cars?"
"That point is good. We should delete it straight away, Karl."
<next day>
"Oh no, Frans, the Americans noticed we deleted the blog post, and now that is also news!"
"Should we put it back?"

This is even funnier if you read it while looking at VolkerP's avatar picture right above it, now imagine the accent...
 
Honestly, if the Audi R8 e-tron gets the same range, Audi can effectively price it below the Tesla even if they make a loss on the car for the sole purpose of putting Tesla out of business.. The entire Volkswagen - Lambo - Audi group is large enough to throw that kind of money down the drain similar to how Fiat "loses $10k for each of the Fiat EV sold".

The R8 is honestly a beautiful car.

EDIT: The R8 e-tron was revived this year via product placement on Iron Man 3. It is also the car "Tong Stark" "drove" to the gala premiere of the movie (he actually switched cars a few miles out and only drove the last few miles to the red carpet in the e-tron).
 
Honestly, if the Audi R8 e-tron gets the same range, Audi can effectively price it below the Tesla even if they make a loss on the car for the sole purpose of putting Tesla out of business.. The entire Volkswagen - Lambo - Audi group is large enough to throw that kind of money down the drain similar to how Fiat "loses $10k for each of the Fiat EV sold".

The R8 is honestly a beautiful car.

EDIT: The R8 e-tron was revived this year via product placement on Iron Man 3. It is also the car "Tong Stark" "drove" to the gala premiere of the movie (he actually switched cars a few miles out and only drove the last few miles to the red carpet in the e-tron).

First to market principle will make Audi look like copycats. Apple had plenty of imitators, but consumers are brand loyal. Tesla Nation is growing every day and it will be harder to sell other EVs in Tesla's class.
 
Audi R8 is a low volume car. They only sold 800 in the US in 2012 Audi sets new U.S. sales record of 139,310 vehicles in 2012; December ranks as best month ever

Plus it only seats two - a very different car than the Model S.

Could they sell 10,000 A8/R8s at a loss to put Telsa out of business? Seriously doubt it. At least in the US that would open them up (and Germany) to anti-dumping trade sanctions. I'm guessing that the German gov. and even merc/BMW would be aligned against this as they have much, much, much larger US business interests to protect.
 
The R8 is more comparable to the Roadster. I looked at buying the R8 instead of the Roadster, it was a pain to find one and the dealer didn't really want to sell it to me.
The car is like a work of art. But the same could be said of the Roadster.

At least Tesla would sell to anyone instead of having dealers who just show off a pretty car to draw customers in.
 
Audi group is large enough to throw that kind of money down the drain similar to how Fiat "loses $10k for each of the Fiat EV sold".
Fiat is only doing that because they have ZEV credit obligations in California. It'll cost them $5k in penalties per credit that they don't reach, which for the 500e means $15k since it gets 3 credits. So even if they lose $10k, that's better than losing $15k in penalties. Plus they will probably need to sell only a couple hundred per year to meet obligations.

I doubt Audi (or any company really) would throw money down the drain just to get back at Tesla. They would need to subsidize about 10k-20k cars per year to squeeze Tesla out, which can get quite expensive.
 
Chrysler just made the same mistake: Chrysler Blog - Not Exactly, Tesla
I read a commenter making a similar claim on Japlopnik.
It's a half truth.
Chrysler had a $1.9 billion outstanding loan that will never be paid since it went down with the "old company". And the US government was paid $560 million by Fiat for its 6.6% stake in Chrysler. That leaves $1.3 billion owed to US Taxpayers that will never be paid back.
http://www.politifact.com/truth-o-m...ys-chrysler-group-now-square-american-taxpay/
http://money.cnn.com/2011/07/21/autos/chrysler_government_exit/index.htm

They are stupid if they draw too much attention to this given the backlash they got from the conservatives in 2011.
 
I read a commenter making a similar claim on Japlopnik.
It's a half truth.
Chrysler had a $1.9 billion outstanding loan that will never be paid since it went down with the "old company". And the US government was paid $560 million by Fiat for its 6.6% stake in Chrysler. That leaves $1.3 billion owed to US Taxpayers that will never be paid back.
http://www.politifact.com/truth-o-m...ys-chrysler-group-now-square-american-taxpay/
http://money.cnn.com/2011/07/21/autos/chrysler_government_exit/index.htm

They are stupid if they draw too much attention to this given the backlash they got from the conservatives in 2011.
In any event, FIAT owns 58% of Chrysler anyway -- that doesn't sound so "American" to me.