AD #3181 – ZF’s Solution for Commercial Truck PTOs; VW Productivity Behind Tesla; GM Sees Dealers as Advantage in EV Race

October 13th, 2021 at 11:48am

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Listen to “AD #3181 – ZF's Solution for Commercial Truck PTOs; VW Productivity Behind Tesla; GM Sees Dealers as Advantage in EV Race” on Spreaker.

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Runtime: 9:25

0:08 VW Productivity Lags Behind Tesla
1:12 Battery Production in China Soars
1:40 GM Sees Dealers as Advantage in EV Race
2:56 Concern Over Raw Material Supply for EV Batteries in Europe
3:38 Tesla Signs Nickel Supply Deal
5:14 Bringing AI to the Shop Floor
7:17 Honda Shows Off New Jet Concept
7:55 ZF Creates All-In-One Solution for Commercial Vehicle PTOs

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22 Comments to “AD #3181 – ZF’s Solution for Commercial Truck PTOs; VW Productivity Behind Tesla; GM Sees Dealers as Advantage in EV Race”

  1. Wim van Acker Says:

    @TESLA: the regulation of dealership which prevents TESLA from selling directly in Texas and other states puts a burden on TESLA. I know it has also benefitted from support during its initial stage of development, but to me it seems that this type of regulation prevents us from seeing what the most competitive sales and service model is. Let’s make automotive retail a free market and let it play out. If the dealership networks need to be restructured so be be it. Any labor that can be freed up can be deployed in new, more productive companies. There is enough work to be done in our economy, so there is no need to lock up labor in obsolete jobs.

  2. Rey Says:

    # 1,, True, let there be competition , banning Tesla from operating the way it wants smacks of protectionism and NADA and MAGA are acting like Goons.

  3. bradley cross Says:

    GMs (& others) dealers have lobbied for the laws to keep Tesla etc out. Not sure all GM dealerships are that interested in EVs. Thought a recent story had some Cadillac dealers “retiring”.

  4. Rey Says:

    During Battery day last year Elon asked all raw suppliers to ramp up production and said Tesla was ready to sign contracts for supply as long as it was produced ethically and clean & concientiously with regards to the environment. The Caledonia contract sounds like it is for annual 800,000 units of cars just for Tesla battery cells of inhouse production, this is separate from LG CATL, and Panasonic contracts as those companies provide finished cells, GIGA Berlin and GIGA Texas will have its own 4680 Cell production lines , as of today GIGA Shanghai is supp,I’d with cells from LG 2170 cylindrical cells, CATL supplies LFP cells for base SR models are 3 and Y LG cells for higher end LR models , margins per car could be 18% to 25% or more.

  5. Rey Says:

    #3 GM is the most active and involved in lobbying MAGA in keeping Tesla out of Michigan, shows that they are scared like S. Let the US Supreme C fix this monopolistic practice if they are serious about interstate commerce and true free market.

  6. Rey Says:

    There are way less parts in BEV compared to ICE , and less maintenance and service required, the Auto World is ripe for disruption as the world turns to fix the environment and goes to BEVs.
    Making batteries and E traction motors can easily be automated, giant MegaCast end pieces simplifies substructure, batteries as a structural member saves weight and materials. If the current mod 3 & Y requires less time than VW id 3&4 imagine what structural batteries will do to assembly process, as Elon says a box is eliminated and the steps for that box.

  7. Roger T Says:

    #1 – agree.
    #3 – I can share my experience here in TX. Went to look at a Chevy Bolt and the Chevy salesman told me not to because it was electric. “Like a toaster oven” is how he described it. Pushed me to test drive an Equinox. I decided they would likely not be good servicing the Bolt, I just left. Got a Mazda instead, as Tesla was more than I wanted to pay and not good with trades.

  8. GM Veteran Says:

    On dealer network laws – y’all are missing the biggest piece of this story. I used to work in this area and got involved with state dealer boards in several states. The laws on the state books that protect the dealership franchise model are not there because of GM or other OEMs. Just the opposite. They are there because the dealers in those states did not want the OEMs to compete with them.

    In the past, GM owned dealerships and the franchised dealers saw this as unfair competition and saw that GM had a distinct pricing advantage. Ditto for other OEMs. So, the dealers lobbied for laws prohibiting the manufacturers from owning dealerships in their states. It is primarily the state dealer groups that continue to push back against Tesla, not the OEMs. They want to compete with other dealers, not manufacturers.

  9. Kit Gerhart Says:

    8 Exactly. I remember hearing stories from my father, born in 1914, about GM and other OEMs wanting to sell directly and/or own stores, but the existing dealers didn’t want any part of it.

    At one time, car companies did have “factory stores.” The Auburn Cord Duesenberg museum was a factory showroom.

  10. Rey Says:

    #8 Tesla never had a Dealer Franchise model, so why lobby to prevent them from doing bznz the way Tesla wants too.

  11. Dave Says:

    Most states do not want casinos but they now have them on Indian reserves [First Nations] now there is a Tesla centre within the borders of New Mexico

  12. Tony Gray Says:

    That’s a pretty cool drill. Going to have to check out the full video.

  13. wmb Says:

    #10.) OEMs are supporting the the organizations that are selling their product, not that they necessarily agree with the said organization. That is why OEMs give awards to those that, not only sell the most of their products, but also offer the best level of service. This clearly demonstrates that there are some dealerships that are better then others, because, for the most part, dealerships are independent companies. So you can imagine some of the bigger dealership networks, not interested in OEMs selling directly to customers. It’s the same as the theater companies protesting movie makers streaming films direct to customers, for it cuts out the middle man, so to speak! Conversely, that also means that every buyer is dealing with a big, international company on a major purchase. Cutting out the dealership (a smaller company), when there is a problem, the buyer could feel like going from finding a goldfish in a fish bowl, to finding the same goldfish in a lake or ocean! With all the different points of contact at a dealership, from the inventory lots, sales floor, financing, service and parts, they do offer a lot for the customer. Not all of it may be good or necessary, and I’m sure the everyone has a horror story. But that said, most remember the bad much more clearer and longer, then remember the good! Should their be laws to force new vehicle sells to use dealerships and keep OEMs from direct sells? I don’t know or ccan’t say, but there was a reason that automakers were forced out and dealerships were locked in. Since i wasn’t around when these changes were made, I cannot answer that question. But could the large automakers been using their leverage, to push their buyers around, if the buyer had problems with their products after the sell? Without context and knowing the reasons why these changes were made, it’s difficult, for me that is, to support one side or or the other.

  14. Kit Gerhart Says:

    11 Could Tesla put stores on Indian reservations in Michigan?

  15. Bobby T Says:

    14, good question. There are a lot of reservations in MI,based on the number of casinos. 9, the ACD Museum is a wonderful place. Great Art Deco architecture too.

  16. Kit Gerhart Says:

    15 The ACD Museum and the Chrysler Building in NYC are art deco at it’s best, and both auto industry related.

  17. Lambo2015 Says:

    8-10 Seems the laws were put in place to protect a dealership from opening shop and then getting undercut by the manufacturer. So as Rey said Tesla and many of these new EV start-ups that haven’t had a dealerships to start with this law shouldn’t apply.
    I think they just know that once it starts the ball will be rolling and it wont be long before other manufacturers will want to operate the same way. I think they are more fearful of what will happen than how Tesla or anyone else does business.

  18. Kit Gerhart Says:

    One advantage dealers have over internet sales with home delivery, is that they do trades. That is a convenience for many customers, and also, the dealers can give ~7% less for a trade than you’d need to get in a private sale of your used car, because you pay sales tax on the “difference” when you trade a car to a dealer.

  19. cwolf Says:

    Another benefit of dealerships starts on the manufacturing side of things and the need to maintain capacity. Unlike the present, when supplies become greater than demand, dealerships are offered sizeable discounts from the manufacturer to reduce inventory. Buyers share the savings and have a large inventory to choose from. Direct sales does not have this advantage for the consumer.

  20. MERKUR DRIVER Says:

    Most of the complaints I hear about dealerships centers around the negotiation and finance process. TESLA, with their phone app, does away with negotiations and financing options. You accept whatever TESLA tells you to accept or you don’t buy a TESLA. People find this less stressful and even preferable.

    Funny thing is, you can have this experience at any dealership. Just walk in and pay whatever is on the sticker and accept whatever financing the dealership throws in front of you. It gets really simple, fast, and zero stress when you do that. It isn’t necessarily cheap, but it is simple and low stress.

    I suspect GM will introduce no haggle pricing and financing in the future. I am sure that financing will only be with GMs financing arm. They can still use the dealerships for all the good things that have been discussed in this thread, but do away with what people complain about the most. Sure it will get more expensive for the consumer, but nobody these days cares. Everyone has been conditioned to pay whatever a multinational company tells you to pay.

  21. Sean Wagner Says:

    15 & 16 – Three cheers for Art Deco! I looked it up – the Auburn Cord Duesenberg museum is nice indeed.

  22. Jim Head Says:

    Get rid of the chicken laws like we have in Michigan and let the franchise dealers survive without hiding behind the direct sales lockout. Allow freedom of sales and freedom of purchase. The franchises may thrive in that environment if they truly are better.

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