Thursday, March 26, 2015

Daimler CEO Dieter Zetsche on Tesla, Aston, Mercedes-Based Infinitis, and More

 Dieter Zetsche with Mercedes-Benz F 015 Luxury in Motion concept

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C/D: Your fully autonomous F 015 concept is intriguing. When will we be able to drive/not drive it?

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Dieter Zetsche: We have partially autonomous driving now up to 15 mph, the next steps will be freeway driving of up to 75 mph, including passing. We will also launch self-parking cars without the presence of a driver. But a vehicle like the F015 is surely for the next decade, not this one. [So, you're saying it'll be a while?—Ed.]

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What is the outlook for carbon fiber at Mercedes?

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We have previously built a fully carbon-fiber car with the SLR McLaren, and we have a few series-production parts, but we are not working on a fully carbon-fiber body and we do not believe that makes sense.

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And electric vehicles? Buyers seem unconvinced.

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And that is not truly surprising. Put simply, the customer gets a car with less range, longer refueling times, somewhat less space, and a higher price tag. Of course, there are some advantages, like the torque from zero rpm, and there are people who simply want to assume a leadership role in technology. But [customers] are focused mainly on value. As long as there are disadvantages, it will only be possible to gain customers through incentives and subsidies. I am convinced it is the technology of the future, however. The question is how long the transition will take. You can accelerate this process, or let it go its natural course.

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Does this mean you believe the internal-combustion engine will go extinct?

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Yes—in the long run. It will be around for a long time, especially [in regards to commercial vehicles], but passenger cars will increasingly use hybrid powertrains. And eventually even the battery-electric vehicle will sell in relevant numbers.

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2015 Tesla Model S P85D

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Daimler divested itself of its final holdings in Tesla, maker of the Model S sedan, last October.
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Daimler sold its shares in Tesla Motors; what role do you expect that company to assume in the wider automotive landscape?

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If you choose to believe the financial analysts, a very heavy role. First, I have great respect for the work Elon Musk has done so far. Whether he will succeed with his future plans remains to be seen. At least he has managed to offset the aforementioned disadvantages of the electric motor with other fun factors, and he has been more successful at it than his competitors. The big question is whether this success is scalable and whether it can be transmitted to other segments. And I don't have an answer to that.

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Would Mercedes-Benz have gotten away with such a car and all of its compromises?

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Of course not. But this should not be taken as criticism of Tesla, because their customers are satisfied and proud of their cars. Seen this way, Tesla has done a great job.

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Will Daimler be involved in future Tesla models to the same extent as with the Model S?

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It doesn't look like it right now. We are always open for talks, but it is not our primary interest to help Tesla develop their next cars.

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Some of your competitors want to build "Tesla fighters"—do you?

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We will most certainly not build a Tesla fighter. We have our own strategy and aim to define our own products. Of course, we observe the competition and try to understand its strengths—but we act, we don't react. And if we build a fighter, it will be directed at our established competitors, not at Tesla.

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Denza-electric-vehicle-placement1

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The Denza is a B-class–based electric vehicle co-developed with BYD for the Chinese market.
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What are the long-term prospects for your partnership with Chinese carmaker BYD?

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When we started that partnership, we were convinced that we shouldn't just go to China to make a profit and send it back home; we also wanted to make a lasting impact. And since the interest in e-mobility is especially strong in China, we set out to jointly develop one with BYD. It was a considerable investment for us, and the Denza has become a really good car. Now we will wait and see how it performs on the market.

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Would you export the Denza from China?

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It is not in our plans, but I don't want to rule it out.

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There will be Mercedes-based Infinitis as part of your cooperation with Renault-Nissan. Are you concerned that they will be direct competitors?

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No. We have discovered little overlap in our market research. The main movements are between Mercedes and Lexus, and BMW and Infiniti.

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Will you expand the Maybach brand into other segments beyond the full-size sedan?

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AMG is our sporty sub-brand, while Maybach stands for absolute exclusivity—and that won't work in every segment, but of course has potential beyond the current offerings.

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Will you buy Aston Martin?

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There are no plans and we are very satisfied with the status quo. The technological partnership is beneficial for both sides. We don't want more, and it would not be good for a large corporation to choke a small series manufacturer with too much "love" and proximity. But we are happy to talk about further cooperation.

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What's next?

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Be the clear number one.

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