Tuesday, October 13, 2015

Nissan Exec: Uber, Not Tesla, a Bigger Threat

Uber At Igby's In Cincy Circa April 2014

John Martin, Nissan North America's senior vice president of manufacturing and supply chain management, had some harsh words for Tesla on Friday. According to him, Uber — not Tesla — is the real disruptor, and what Tesla is doing now is relatively easy, Automotive News reported.

"Lot's of people are calling Tesla a disrupter. They are not," he said while arguing that building a performance vehicle that's priced over $100,000 is much easier than manufacturing an electric car for under $30,000.

And what about Apple and Google? Martin doesn't foresee either of them getting into the auto manufacturing business anytime soon.

The reason: The profit margin in building cars is too low to interest the technology giants. While cars typically return 10-percent margins, those companies are used to 30 to 40-percent margins from their products.

But, Martin really drove home his view on Tesla.

"People ask me: 'When are you going to compete with Tesla?' And I ask them, 'When is Tesla going to compete against me?'"

As for Uber, Martin sees them as a bigger threat as they are a service provider with significantly lower costs than a manufacturer. Uber is mixing it up in the taxi space and pushing the taxi industry as a whole to evolve.

The post Nissan Exec: Uber, Not Tesla, a Bigger Threat appeared first on The Truth About Cars.



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