Tesla fans: Study Ford’s China joint venture very carefully

Send in the clones: Zotye’s Macan left, Porsche’s Macan right – Pictures Carnewschina.com

Hopping on the Chinese EV bandwagon, and trying to comply with looming tough EV mandates in China, U.S. carmaker Ford has signed a joint venture agreement with Zotye Auto to make low-cost electric cars in China. Investors in Californian carmaker Tesla should closely study this agreement.

The jointly produced cars won’t be sold as Ford cars, but under “a new brand,” Ford group vice president Peter Fleet told Reuters. Why would Ford give up the strong brand cachet it has, and embark on the long, arduous, and expensive schlep to build a new brand nobody has ever heard of? Simple answer: [Continue Reading]

Source: Tesla Responsible For Model 3 “Production Hell”

Tesla has been vague about its reasons for missing its first full-quarter Model 3 production goals by more than 80%, blaming “bottlenecks” for the delay and “emphasizing” that “there are no fundamental issues with the Model 3 production or supply chain.” But according to a source familiar with the development and deployment of the Model 3 production system, Tesla’s rushed and disorganized approach made the current “production hell” inevitable.

At the outset of the Model 3 program, Tesla asked a major automated tooling supplier to develop two Body In White (BIW) transfer lines for the Model 3. The source, who spoke on condition of anonymity for both himself and the supplier, says disagreements between Tesla’s designers and engineers resulted in numerous revisions to the scope of the contract and eventually led Tesla to drop the second line from its purchase order (PO).

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Model S September’s top-selling BEV in Western Europe. That’s the good news

Model S in Norway. Picture by Matthias Schmidt

AID, the must-have newsletter for people in need of unvarnished automobile sales data, has an explosive mix of good-news / bad-news for Tesla friends and foes alike. Tesla is racking up impressive sales gains in the world’s second-largest battery-electric EV market. That’s the good news. The not-so-good news is that if Elon Musk won’t act fast, the sudden gains are liable to evaporate, writes AID publisher Matthias Schmidt. [Continue Reading]

Volkswagen boss rips Elon Musk as destroyer of jobs and money

Matthias Müller (Picture: Volkswagen)

Car companies used to refrain from commenting on the competition, but the veil of propriety seems to develop more rips than the jeans of a grunge rocker. Last night, Volkswagen’s CEO Matthias Müller tore Elon Musk a big one, blasting the head of Californian carmaker Tesla as deficient of both social responsibility, and profits.

At an evening talk show in Passau, Germany, the moderator mentioned that Tesla “fascinates customers with its electric cars.” This triggered Müller to deliver a forceful statement he audibly had wanted to make for quite some time. Here is the video, along with a translation from Müller’s heavily Bavarian-tinged German:

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Tesla about to lose a big chunk of one of its most important markets, Norway

Ice age ahead: Model S in Norway (Picture: Youtube)

For electric carmaker Tesla, Norway is a paradise. Lavish tax breaks for electric cars, combined with expropriative taxes on gas cars (such as “total taxes for a Chevrolet Camarao V6? 125,000 dollars” as a Redditor writes) are the reason why nearly one in every ten Tesla cars go to the rugged and cold 5 million people country in Scandinavia. In yet another blow in a rough week, Tesla is about to lose its Nordic paradise.

“Norway plans to trim lavish tax breaks for Tesla and other electric cars that have given it the world’s highest rate of battery-vehicle ownership,” Reuters wrote today after reading a proposal by Norway’s right-wing government. At closer reading, one sees that the main target is Tesla. [Continue Reading]

The indignity! Tesla Model 3 could be out-produced by “fool cell” Mirai this year

Mirai production in Motomachi, capacity 3,000 units per year

Californian carmaker Tesla is close to suffering yet another insult. The company infamously managed to deliver only 220 of its more affordable Model 3 in the two months since production was kicked-off with great fanfare. Should Tesla remain on that pace – and an article by my partner Ed Niedermeyer paints that as a strong possibility –  the allegedly mass-produced Tesla Model 3 could be out-produced by Toyota’s lowest-volume car, the hydrogen fuel cell Mirai.

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Source: Tesla’s “Pilot” Model 3 Body Line Still In Development Near Detroit

Photos, apparently of a Model 3 “pilot team” in “Area 51,” were subsequently deleted by a now-private Instagram account.

Three months ago Tesla CEO Elon Musk tweeted that production of the new Model 3 in “Aug[ust] should be 100 cars and Sept[ember] above 1500.” But over the following quarter Tesla ended up delivering only 220 of its new more-affordable electric cars, or just 15% of Musk’s guidance. Though Tesla’s delivery press release didn’t identify the cause for this dramatic miss, it did state that

“It is important to emphasize that there are no fundamental issues with the Model 3 production or supply chain. We understand what needs to be fixed and we are confident of addressing the manufacturing bottleneck issues in the near-term.”

What does and does not constitute a “fundamental issue” with the Model 3 production ramp is open to debate, but a source tells Daily Kanban that elements of the Model 3 body line are still in development at the Michigan-based supplier Thai Summit America and not yet installed at Tesla’s Fremont facility.

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Tesla: Production Capacity Of Model 3 To Average 226,563 Units Per Year Over Next Five Years

George Orwell famously wrote that “to see what is front of ones nose takes a constant struggle,” and it turns out that the answer to one of the biggest mysteries in the auto industry has been hanging out directly in front of the public’s nose for some time. In a January 2017 application [PDF] for sales tax exemption (STE) from the CAEATFA program, the California Treasurer revealed that

“Tesla represents the Project will launch the Model 3 and provide the capacity to produce and deliver an average of 226,563 units per year over a five year period, in addition to its Model S and Model X production.”

This revelation provides an unprecedented clarity about Tesla’s production ambitions for its “more-affordable” Model 3 sedan, and contradicts representations that Tesla executives have made in quarterly conference calls with analysts and the media.

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