Zetsche: There's No Money In The EV Stand
Though Daimler made $780 million off of its recent Tesla stake sale, CEO Dieter Zetsche says there’s no money in the EV stand.
AutoblogGreen reports Daimler is leasing its Mercedes B-Class Electric Drive for €399 ($498 USD) a month for 36 months with a down payment of €8,473 ($10,582) due at signing in European showrooms. Were Zetsche to have his way, however, those payments would be higher:
You can reasonably say that nobody today is making a battery-powered vehicle that’s economically viable in its own right. Manufacturers will not see a return within a reasonable time on the billions they’re investing now.
Zetsche’s remarks echo those of Fiat Chrysler Automobiles CEO Sergio Marchionne, who would rather spend $10,000 on a more profitable product than lose said amount every time a Fiat 500e is sold. On the other hand, Nissan and Tesla — the latter having worked with Daimler on the B-Class Electric Drive — have found their respective gambles paying off thus far, though neither are planning to show their hands just yet.
So, the reality sets in EVs are not profitable, next...
He is right, there is no money in for companies that overslept the trend and are technologically behind. The same way the Germans still deny hybrids are profitable. Well, they are. Just not for the OEM that missed the boat. I'm sure 5 more years of R&D and oil price spike will make EV viable for short distance for many. I'm not saying as a long distance or only car. But as second car for sure. In the engineering world havin thousands of Leaf, Volt and Tesla on the road and starting mass production is a great step towards much better and cheaper EV. Too bad some OEM will be left out.
Pssh, what does Zetsche know? According to the B&B, this is the business model of the future.
There's always money, IN THE BANANA STAND!