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Can someone explain why they didn't go all in on EVs ten years ago? After all they had a lot more profits than Tesla to invest into R&D and a lot more knowhow o

Can someone explain why they didn't go all in on EVs ten years ago? After all they had a lot more profits than Tesla to invest into R&D and a lot more knowhow on manufacturing cars. Instead they just sat there milking profits from ICE engines just like GM, Ford, Stellantis, BMW, Mercedes etc. And now they have the legacy perception with Tesla taking sales on the high end and Chinese EV startups(who copied Tesla) squeezing them on the low end. They have no one to blame but themselves.

trilbyglens 2y ago
My guess is typical German conservatism and lack of imagination. For all the discipline and efficiency the Germans bring, they also bring a listlessness and a ridgedness that is never an asset in a dynamic environment. I've worked with a few German startups and investors and the common thread is that there's too much process and not enough comfort with chaos to really be very innovative. Rapid change necessitates a level of comfort with uncertainty, which I think is culturally lacking in Germany for the most part.
- xadhominemx 2y ago
  It's proven very difficult for any legacy ICE manufacturer to successfully compete in BEVs. BYD is really the only example. Whipping around the Titanic is already extremely difficult, and you're right, German culture makes it basically impossible.
  - JojoFatsani 2y ago
    GM and Hyundai/Kia are having success. Not with the share of Tesla, but Tesla has the advantage of being 100% EV.
    - xadhominemx 2y ago
      Hyundai is still navigating the transition but seems poised for success, you’re right
  - wenc 2y ago
    While German rigidity and risk-aversion might have made it more difficult (I used to work for a German multinational so I have some experience with this), it's true that for any big company -- even American ones -- that it is hard to disrupt yourself. Clay Christiansen wrote a book about this called the Innovator's Dilemma. https://en.wikipedia.org/wiki/The_Innovator%27s_Dilemma https://en.wikipedia.org/wiki/The_Innovator%27s_Dilemma
tim333 2y ago
I was just looking at an article: Volkswagen to hit 1m electric cars milestone two years early (2019) https://www.theguardian.com/business/2019/dec/27/volkswagen-to-hit-1m-electric-cars-milestone-two-years-early https://www.theguardian.com/business/2019/dec/27/volkswagen-... So they've been doing that but they keep making what the market buys. I think one of the problems is it's hard to keep up with the competition given a high cost base in Germany. Ironically one of the leading companies now is Xpeng which is making a Tesla 3 like thing for $16k, after turning itself around after a $700m investment from Volkswagen of all companies https://youtu.be/ci5b3GgK7OA?t=250 https://youtu.be/ci5b3GgK7OA?t=250

trilbyglens 2y ago

My guess is typical German conservatism and lack of imagination. For all the discipline and efficiency the Germans bring, they also bring a listlessness and a ridgedness that is never an asset in a dynamic environment. I've worked with a few German startups and investors and the common thread is that there's too much process and not enough comfort with chaos to really be very innovative. Rapid change necessitates a level of comfort with uncertainty, which I think is culturally lacking in Germany for the most part.

xadhominemx 2y ago
It's proven very difficult for any legacy ICE manufacturer to successfully compete in BEVs. BYD is really the only example. Whipping around the Titanic is already extremely difficult, and you're right, German culture makes it basically impossible.
- JojoFatsani 2y ago
  GM and Hyundai/Kia are having success. Not with the share of Tesla, but Tesla has the advantage of being 100% EV.
  - xadhominemx 2y ago
    Hyundai is still navigating the transition but seems poised for success, you’re right
- wenc 2y ago
  While German rigidity and risk-aversion might have made it more difficult (I used to work for a German multinational so I have some experience with this), it's true that for any big company -- even American ones -- that it is hard to disrupt yourself. Clay Christiansen wrote a book about this called the Innovator's Dilemma. https://en.wikipedia.org/wiki/The_Innovator%27s_Dilemma https://en.wikipedia.org/wiki/The_Innovator%27s_Dilemma

tim333 2y ago

I was just looking at an article: Volkswagen to hit 1m electric cars milestone two years early (2019) https://www.theguardian.com/business/2019/dec/27/volkswagen-to-hit-1m-electric-cars-milestone-two-years-early https://www.theguardian.com/business/2019/dec/27/volkswagen-... So they've been doing that but they keep making what the market buys. I think one of the problems is it's hard to keep up with the competition given a high cost base in Germany. Ironically one of the leading companies now is Xpeng which is making a Tesla 3 like thing for $16k, after turning itself around after a $700m investment from Volkswagen of all companies https://youtu.be/ci5b3GgK7OA?t=250 https://youtu.be/ci5b3GgK7OA?t=250