Nov 9, 2011: Tesla's Elon Musk, GM's Bob Lutz To Appear On 'Charlie Rose' Tonight

[Lloyd]

[video]http://www.charlierose.com/view/interview/11984[/video]

 

[dmckinstry]

You have to give Bob Lutz credit, in some ways, the Volt is better than the Prius. If most of your driving is under 50 miles a day, the Volt is much better. The 14 mile range (prob. 10 real world miles) of the plug-in Prius is pathetic.

Yep. It's just too bad they couldn't have come closer to matching the Prius mileage on pure ICE mode.

 

[richkae]

Prius: 3000 pounds, 0.26 Cd, not very quick
Karma: 5000 pounds, 0.31Cd, tries to be quick

Physics is going to make it hard for them.

 

[TEG]

Prius: Atkinson cycle...

There is a long list of hybrids that use them for efficiency reasons, but not Karma or Volt... Stuck with Otto...

 

[dpeilow]

If you're really concerned about gas mileage for long distance journeys, buy a diesel.

For everyone else, run the numbers and see how high the percentage of EV miles is you will do.


Here's a hint for GM: put a calculator on your websites where buyers can punch in their commutes, regular trips and where they can charge and have it work out the proportion of electric miles, mpg and annual savings they would make.

 

[Norbert]

But back to topic please.

What's the topic if not those things which Elon and Bob discussed in the interview?

 

[TEG]

Did it sound like Bob Lutz was suggesting he might be getting a Roadster?

Charlie Rose - Robert A. Lutz & Elon Musk
Speaking of Roadster, he said [3:45] "I don't have mine... yet..."

 

[Lloyd]

Did it sound like Bob Lutz was suggesting he might be getting a Roadster?

Charlie Rose - Robert A. Lutz & Elon Musk
Speaking of Roadster, he said [3:45] "I don't have mine... yet..."

Well, they gave one to Mr. Toyoda. Perhaps he was referring to that!

 

[TEG]

If GM were to have invested $50m in Tesla, and practically give them a giant factory, and collaborate on vehicle power-trains, and...

 

[Mycroft]

What's with millionaires like Leno needing $100,000 cars given to them? Like TEG said, Toyoda was a brilliant move by Elon. That's exactly how the Japanese do business. I wonder if he thought that up or if a Japanese expert recommended the move.

 

[Norbert]

Did it sound like Bob Lutz was suggesting he might be getting a Roadster?

Charlie Rose - Robert A. Lutz & Elon Musk
Speaking of Roadster, he said [3:45] "I don't have mine... yet..."

Taking it literally, it would mean he already ordered one and it isn't delivered yet, but in context I'd think he just expressed that he is in the 'customer target group' and could imagine having one. My impression was he expressed more fondness of the Model S, though. It is, as it seems, not just politeness in the presence of Elon:

The Chevy Volt Energy and Clean Tech | an SFGate.com blog
(SFGate interview with Bob Lutz, goes more into the depth of several related questions)

WE’RE ALL VERY CURIOUS TO SEE IF TESLA’S GAMBLE ON THE MODEL S PAYS OFF.

The stock’s doing well and everyone’s got a buy on it. Meanwhile, they’re losing a ton of money. My philosophy always is, if you have a desirable product, you can muddle your way past the financial problems. Elon Musk and the team were smart enough to get, without question, some of the world’s finest designers on the Model S. The car is so beautiful that you look at it and say, “I don’t care what drives it, I just want one.” That’s really the secret of this business.

I honestly think they’re going to make it. Now, long term, when Volkswagen, Audi, General Motors, Ford, Mercedes Benz, BMW, all adopt the same technology using pretty much the same battery suppliers, with their stronger marketing and dealer networks, whether long term Tesla can survive against that is another question.

So, some caution, but basically he appears to say Tesla is now a proper car company.

Also interesting this Q&A:

WHAT DO YOU THINK OF THE FUTURE OF THE CAR, 10-15 YEARS DOWN THE ROAD? WILL WE STILL MOSTLY HAVE GASOLINE ENGINES?

It’s going to be a gradual transition. The scenario I like, the one that makes sense to me, is that in 10 years, somewhere around 10 to 15 percent of the cars produced worldwide will be alternative-energy powered.

The only reason gasoline engines are so cheap is because we’ve got the global economies of scale, and we’ve been producing them for over a hundred years. But when you look at it, there’s a ton of hardware in there. And I think it’s going to be possible to get the price of a 300-mile battery pack, with the attendant power electronics, to be no more expensive than today’s gasoline powered technology. When we get there, there’s just not going to be any more reason to have conventionally fuelled cars.

Makes me wonder what Bob Lutz would be like as Tesla Marketing...

 

[Doug_G]

Makes me wonder what Bob Lutz would be like as Tesla Marketing...

Certainly could do a lot better than the current GM marketing! "Better than Electric"

 

[AnOutsider]

I honestly think they’re going to make it. Now, long term, when Volkswagen, Audi, General Motors, Ford, Mercedes Benz, BMW, all adopt the same technology using pretty much the same battery suppliers, with their stronger marketing and dealer networks, whether long term Tesla can survive against that is another question.

I've always wondered the same, and what Tesla plans. Hope they've got some patents up their sleeves. I know Elon wants the industry to follow him, but at the expense of them pushing him off the road at the same time?

 

[Mycroft]

They have a bunch of very solid patents! That's one of the reasons why Toyota and Daimler are enmeshing themselves with Tesla. Elon's very smart. He definitely does not want to sell the company. By enmeshing with multiple big boys with very good contracts, he's making it impossible for a single company to buy the company out from under him.

 

[Robert.Boston]

"Stronger marketing" -- marketing can be bought, very rapidly. There's very little inertia in the marketing world.
"Stronger dealer network" -- needs to be parsed:

• Stronger sales-point network: Most people won't buy a car without a test drive, so this has to be addressed by Tesla-specific stores with a small number of testers. It will be interesting to see if Tesla continues the "lean" model, carrying no inventory (like the original Saturn model). I hope so, but again, Americans are impatient, and Tesla will lose some sales if people can't drive off with their new car immediately.
• Stronger service network: Is the Tesla Rangers model sustainable with an installed base of 100k+ cars? As a premium service, yes, but more service centers will be important. EVs also cannot tap the huge range of independent car repair shops.

These are significant challenges for Tesla, but we know it can be done: consider that Kia and Hyundai (among others) have executed successful U.S. market-entry strategies in the past decade.

 

[stopcrazypp]

It will be interesting to see if Tesla continues the "lean" model, carrying no inventory (like the original Saturn model). I hope so, but again, Americans are impatient, and Tesla will lose some sales if people can't drive off with their new car immediately.

It depends on if Tesla can offer some additional perk for not having immediate inventory. Saturn's perk was non-hassle pricing and a good buying experience, and it seems Tesla's going to do something similar. Of course, Saturn folded in the end, but I think it was mainly from GM building cars at a loss, the line-up going stale, and some of the better models (the Aura and Astra) being under-marketed.

 

[raymond]

Did it sound like Bob Lutz was suggesting he might be getting a Roadster?

Charlie Rose - Robert A. Lutz & Elon Musk
Speaking of Roadster, he said [3:45] "I don't have mine... yet..."

TM will soon announce Bob moving from GM to TM.

 

[vfx]

... Of course, Saturn folded in the end, but I think it was mainly from GM building cars at a loss, the line-up going stale, and some of the better models (the Aura and Astra) being under-marketed.

Saturn must have died for other reasons as well.

 

[vfx]

TM will soon announce Bob moving from GM to TM.

That's the thought when watching.

 

[Todd Burch]

Saturn must have died for other reasons as well.

I heard the main reason was that the profit margin on Saturn's cars was small and GM wanted to unload the small profit margin brands.