Tesla Week: Stealing Porsche Customers, Model 3 Update, Speed Vs. Quality

Credit: Tesla

Tesla Model 3.

The week saw media coverage ranging from a Tesla employee-sourced story on quality to a Porsche executive admitting that it's losing some customers to the Silicon Valley carmaker. [For the week ending Friday December 1, 2017.]

Tesla Quality: Tesla is a force of nature -- with a large, devoted following -- that will be hard to stop unless the company screws up in a galactically stupid way.  The jury's still out on the Model 3 since the company has yet to produce more than a trickle as it grapples with production purgatory.

As Tesla slowly (very) ramps up Model 3 production, Reuters tried to ding Tesla on Model X and S "defect rates." I won't quote at length from the story. One brief excerpt will suffice:

The luxury cars regularly require fixes before they can leave the factory, according to the workers. Quality checks have routinely revealed defects in more than 90 percent of Model S and Model X vehicles inspected after assembly, these individuals said, citing figures from Tesla’s internal tracking system as recently as October. Some of these people told Reuters of seeing problems as far back as 2012.

--Reuters, "Build fast, fix later: speed hurts quality at Tesla, some workers say"

In response, a Tesla spokesperson provided a statement to me -- and the media in general. I will quote more extensively from Tesla because I think it's important to get its statement about production and quality control on the record.

"Last year we confirmed a 92% improvement in Model X reliability compared to early 2016. This year we have continued driving improvements to achieve another 24% improvement in the first half of the year.

"Most customers would never notice the work that is done post production, but we care about even a fraction of a millimeter body gap difference or a slight paint gloss texture. We then feed these improvements back to production.

"The number of labor hours needed to complete a vehicle has decreased 33% since early 2016. Of the 250,000 Tesla vehicles ever produced, more than half were built in the past 18 months. Whereas before, it took three shifts with considerable overtime to produce our target annual production of 100,000 Model S and X vehicles, now it can be done with only two shifts and minimal overtime."

About the 90% rate cited in the Reuters story:

First pass yield is confidential, according to Tesla. Tesla does discuss, however, what this rate represents. When the rate is determined internally, something only passes if there are zero non-conformities on the car, no matter how minor it is and how long it takes to repair it.  And most non-conformities at the end of the line are very minor and fixed in a few minutes. Tesla says it is misleading to use this rate to suggest that most cars have significant issues when they reach the end of the line. They do not, according to Tesla.

Other quality control measures that Tesla performs, according to the company:

--Near the end of the line, every vehicle is put through an additional quality control process involving more than 500 other inspections and tests.  Some of these tests cannot be done while a vehicle is on the assembly line.  There is no separate “repair yard” outside.

--Most issues identified at the end of line inspection are minor and...resolved in a matter of minutes.

--Factory performance (which includes manufacturing and service/repair teams) is measured by the number of vehicles gated. A vehicle cannot be gated unless the vehicle has passed all required inspections.

Credit: Tesla

Tesla Model 3.

Tesla stealing Porsche customers: (via Electrek): CNBC posted an interview with Porsche North America CEO Klaus Zellmer that kind of states the obvious:

We have lots of respect for Tesla – and, yes, I'm sure there are some Porsche customers, that in terms of connectivity, digital stuff in the car and electric battery in the vehicles, didn't find the car that they wanted with Porsche so they bought somewhere else.

Porsche North America CEO Klaus Zellmer on CNBC's Closing Bell (November 29)

My take: I've seen this happening in Los Angeles for a long time. I frequent places in Century City and Beverly Hills and have witnessed the rapid rise of the Model S and more recently the Model X. In short, the Model S and Model X are now a conspicuous presence (ubiquitous) in these neighborhoods. Five years ago the Tesla presence was virtually zero. So, something (like the Panamera) has got to give.

Model 3 software updates: finally, an FM radio. The Model 3 is missing some pretty basic software features, as Electrek points out. That's because the 3's software is still a work in progress. But that's improving: the Model 3 now has the radio and tire pressure and energy consumption screens.

It is also getting features that have more recently been introduced to the S and X:

Starting in this release, you can get in and out of the driver’s seat more easily. When you park, the steering wheel and driver’s seat will automatically adjust for an easier exit. After you return to the vehicle, they automatically adjust back to the recent driving profile when you step on the brake. Or, if your keyfob is linked to your driver profile, the seat and steering wheel adjust accordingly. As always, you can restore your profile by selecting it from the list.

--Electrek, "Tesla updates Model 3 software with radio, odometer, and more" (December 2)

Model 3 gets EPA rating: An official EPA rating of 310 miles combined, 322 city via InsideEVs.  "At 321.9 miles, that’s just over 11 miles shy of the Tesla Model S 100D." Inside EVs notes.

Model 3 attracts crowds at LA Auto Show: "Tesla’s booth — strategically located inside the entrance of the luxury-focused South Hall of the Los Angeles Convention Center — was swarmed all week by the curious who were eager to see a Model 3, perhaps the most talked-about car in autodom," according to Detroit News.  Interestingly, the story cites a comment by Karl Brauer, executive publisher with Cox Automotive. "The Model 3 could be an inflection point or it could be the end of Tesla," the Detroit News story says.

Despite only three cars in the market (and the Model 3 is barely in the market), Tesla’s influence was felt throughout the show. And that meant the company was a target.

BMW and Mercedes-Benz both highlighted their Tesla-fighting EV brands at their respective LA press conferences. BMW rolled out three versions of its electric i-badge, including a show-stopping i8 Roadster, an updated i3 S compact and the futuristic i Vision concept.

--Detroit News, "Tesla generates buzz as electrics rule LA show" (November 30)

">

Credit: Tesla

Tesla Model 3.

The week saw media coverage ranging from a Tesla employee-sourced story on quality to a Porsche executive admitting that it's losing some customers to the Silicon Valley carmaker. [For the week ending Friday December 1, 2017.]

Tesla Quality: Tesla is a force of nature -- with a large, devoted following -- that will be hard to stop unless the company screws up in a galactically stupid way.  The jury's still out on the Model 3 since the company has yet to produce more than a trickle as it grapples with production purgatory.

As Tesla slowly (very) ramps up Model 3 production, Reuters tried to ding Tesla on Model X and S "defect rates." I won't quote at length from the story. One brief excerpt will suffice:

The luxury cars regularly require fixes before they can leave the factory, according to the workers. Quality checks have routinely revealed defects in more than 90 percent of Model S and Model X vehicles inspected after assembly, these individuals said, citing figures from Tesla’s internal tracking system as recently as October. Some of these people told Reuters of seeing problems as far back as 2012.

--Reuters, "Build fast, fix later: speed hurts quality at Tesla, some workers say"

In response, a Tesla spokesperson provided a statement to me -- and the media in general. I will quote more extensively from Tesla because I think it's important to get its statement about production and quality control on the record.

"Last year we confirmed a 92% improvement in Model X reliability compared to early 2016. This year we have continued driving improvements to achieve another 24% improvement in the first half of the year.

"Most customers would never notice the work that is done post production, but we care about even a fraction of a millimeter body gap difference or a slight paint gloss texture. We then feed these improvements back to production.

"The number of labor hours needed to complete a vehicle has decreased 33% since early 2016. Of the 250,000 Tesla vehicles ever produced, more than half were built in the past 18 months. Whereas before, it took three shifts with considerable overtime to produce our target annual production of 100,000 Model S and X vehicles, now it can be done with only two shifts and minimal overtime."

About the 90% rate cited in the Reuters story:

First pass yield is confidential, according to Tesla. Tesla does discuss, however, what this rate represents. When the rate is determined internally, something only passes if there are zero non-conformities on the car, no matter how minor it is and how long it takes to repair it.  And most non-conformities at the end of the line are very minor and fixed in a few minutes. Tesla says it is misleading to use this rate to suggest that most cars have significant issues when they reach the end of the line. They do not, according to Tesla.

Other quality control measures that Tesla performs, according to the company:

--Near the end of the line, every vehicle is put through an additional quality control process involving more than 500 other inspections and tests.  Some of these tests cannot be done while a vehicle is on the assembly line.  There is no separate “repair yard” outside.

--Most issues identified at the end of line inspection are minor and...resolved in a matter of minutes.

--Factory performance (which includes manufacturing and service/repair teams) is measured by the number of vehicles gated. A vehicle cannot be gated unless the vehicle has passed all required inspections.

Credit: Tesla

Tesla Model 3.

Tesla stealing Porsche customers: (via Electrek): CNBC posted an interview with Porsche North America CEO Klaus Zellmer that kind of states the obvious:

We have lots of respect for Tesla – and, yes, I'm sure there are some Porsche customers, that in terms of connectivity, digital stuff in the car and electric battery in the vehicles, didn't find the car that they wanted with Porsche so they bought somewhere else.

Porsche North America CEO Klaus Zellmer on CNBC's Closing Bell (November 29)

My take: I've seen this happening in Los Angeles for a long time. I frequent places in Century City and Beverly Hills and have witnessed the rapid rise of the Model S and more recently the Model X. In short, the Model S and Model X are now a conspicuous presence (ubiquitous) in these neighborhoods. Five years ago the Tesla presence was virtually zero. So, something (like the Panamera) has got to give.

Model 3 software updates: finally, an FM radio. The Model 3 is missing some pretty basic software features, as Electrek points out. That's because the 3's software is still a work in progress. But that's improving: the Model 3 now has the radio and tire pressure and energy consumption screens.

It is also getting features that have more recently been introduced to the S and X:

Starting in this release, you can get in and out of the driver’s seat more easily. When you park, the steering wheel and driver’s seat will automatically adjust for an easier exit. After you return to the vehicle, they automatically adjust back to the recent driving profile when you step on the brake. Or, if your keyfob is linked to your driver profile, the seat and steering wheel adjust accordingly. As always, you can restore your profile by selecting it from the list.

--Electrek, "Tesla updates Model 3 software with radio, odometer, and more" (December 2)

Model 3 gets EPA rating: An official EPA rating of 310 miles combined, 322 city via InsideEVs.  "At 321.9 miles, that’s just over 11 miles shy of the Tesla Model S 100D." Inside EVs notes.

Model 3 attracts crowds at LA Auto Show: "Tesla’s booth — strategically located inside the entrance of the luxury-focused South Hall of the Los Angeles Convention Center — was swarmed all week by the curious who were eager to see a Model 3, perhaps the most talked-about car in autodom," according to Detroit News.  Interestingly, the story cites a comment by Karl Brauer, executive publisher with Cox Automotive. "The Model 3 could be an inflection point or it could be the end of Tesla," the Detroit News story says.

Despite only three cars in the market (and the Model 3 is barely in the market), Tesla’s influence was felt throughout the show. And that meant the company was a target.

BMW and Mercedes-Benz both highlighted their Tesla-fighting EV brands at their respective LA press conferences. BMW rolled out three versions of its electric i-badge, including a show-stopping i8 Roadster, an updated i3 S compact and the futuristic i Vision concept.

--Detroit News, "Tesla generates buzz as electrics rule LA show" (November 30)

Let's block ads! (Why?)

Read Again https://www.forbes.com/sites/brookecrothers/2017/12/03/tesla-week-stealing-porsche-customers-model-3-update-speed-vs-quality/

Bagikan Berita Ini