Persistance Is A Bitch
- May 18, 2012
You are outdated and know very little about what is going on.
If Chrysler doesn't change fast, their competitors will continue to crush them. Tesla and other EV startups pose a threat to FCA. Incumbents such as Ford and VW recognize the threat and they have invested in unlearning outdated processes that don't work anymore. FCA barely grew their top-lines, it was less than 3%, barely below the inflation rate. Tesla is growing more than 60% a year.
Chrysler is an example of a company that is hopelessly outdated. They move at a snails pace, whereas Tesla moves at a lightning pace. Tesla is able to change designs on the fly to reduce cost in their vehicles. Tesla continuously changes its electronic architecture. Chrysler would never do such a thing. Look at the Challenger and the Charger. They are still on old, outdated chassis because they don't touch their platforms for decades. Tesla was able to save hundreds of dollars when they switched up their architectures after two years. That is impressive savings in an industry that fights over pennies. The key to Tesla's profitability has always been its ability to cut cost and increase capability for their customers.
Tesla makes money off carbon credits and NOTHING from their cars. The EV mandates will take that carbon money off the table and Tesla will then be sky rocketing the price of their cars to survive. They will then be crushed by the legacy dealers who have the dealer network to sell and service. They will end up with a SAAB size market share of the EV pie.