Skip to main content

Bob Lutz Offers Tesla A Warning

Bob Lutz is a motor industry old hand, having served BMW, Chrysler, Ford and GM at positions up to and including CEO. So when Bob has something to say the industry listens.
In a piece for Road and Track magazine Lutz offers some warnings for Tesla, in particular pointing out some significant flaws in the company's operating model and financial structure.
Before you discard this information as the vindictive rants of a motor industry apologist you should be aware that Lutz has been predicting the electrification of the passenger car for years and was responsible for green lighting the Volt almost a decade ago. The fact that Tesla's cars are electric has no relevance to Lutz's warnings.
There's no question that the adoption of electricity as a power source for cars by mainstream manufacturers is a risk for Tesla. Especially since the VW scandal virtually guarantees the Germans will have to undertake a wholesale adoption of EVs to wipe away the bad taste of diesel emissions cheating. VW's brands include Porsche, Audi and Bentley. Any one of these trumps Tesla for cachet and with the might of VW behind them will no doubt do so technically too.
Tesla's future looks like that of a boutique manufacturer. Selling premium cars at a solid profit is a workable model. Lutz points out several areas where Tesla isn't making this choice.
Tesla has only a short window to fix its operating model before it gets run over by the mainstream motor industry and probably Apple too.


Popular posts from this blog

F1: Robert Kubica Impresses In Renault Test Run

The car may be old but its the performance of the driver that's the story here. Robert Kubica returned to F1, after a fashion, earlier this week with an extensive test run in a 2012 Lotus Renault F1 car at Valencia.
The age of the car and the circuit were likely determined by F1's current rules which ban testing, but the reason for Kubica being in the car is far more interesting. Considered by many to be a potential World Champion and certainly one of the fastest drivers of his generation, Kubica's F1 career seemed to be over after a 2011 crash whilst driving in the Rally of Andora. His Skoda Fabia was penetrated by a guardrail in the high speed accident partially severing his right arm.
Up until last year Kubica has been competing in rallying, with the expectation that the limited movement in his repaired arm would prohibit a return to single seater racing.
So this week's test is both interesting and confusing. Interesting because Kubica completed 115 laps of the ret…

F1: Robert Kubica's Williams Test Asks More Questions Than It Answers

Comparing driver's times at a tyre evaluation test like last week's Abu Dhabi event is difficult at the best of times, but when trying to assess the performance of a driver who has been out of the sport for six years, that difficulty level is raised even higher.
On the face of it Robert Kubica's test for Williams was a success. Fastest of the three Williams drivers present the headlines look promising. However, taking into consideration the different tyres used to set those times muddies the water considerably.
Kubica ran a three lap qualifying simulation on the new 'hyper-soft' tyre - which should have given him a two-second advantage. Correcting for tyres it would appear that Kubica was significantly slower than Sergei Sorotkin - who was on the harder 'soft' tyre - and marginally quicker than Lance Stroll, the team's only contracted driver.

Stroll's family fortune currently funds Williams, so there' no chance that he will be anywhere but in a…

Panos Panay's Defence Of Microsoft Surface Hardware Sounds Eerily Familiar

This weekend I went out with my ten year old daughter to select a laptop for her school year beginning in January. The schools requirements are quite specific, requiring a Windows 10 device, with a preference for a touchscreen and a stylus. She chose a Surface Pro, after trying a large number of different options. Having seen the way I use my own Surface Pro - and tried it herself there was only ever going to be two options - and the other was a Surface Laptop.
I tell you this so that you understand I am a buyer of Microsoft's products through choice, not compulsion. I'm on my third Surface device now. 
So when Panos Panay dismissed reports of the death of the Surface hardware line, I was very interested to see exactly how strong these denials were. Especially how they reflect what has gone before. To whit: Windows 10 Mobile.
Panay claimed that Microsoft is in hardware for the long haul. Almost exactly mirroring the words of Terry Myerson, when he claimed Windows Mobile was g…