Nine years ago, in May 2009, Daimler, the parent company of Mercedes-Benz, and Tesla signed a partnership and began working closely together on electric vehicles.Mercedes-Benz
On Monday, Polish newspaper Rzeczpospolita published an interview of Dieter Zetsche in which the Daimler CEO didn’t rule out a future partnership with Tesla, weeks only after the American automaker outsold Mercedes-Benz in the U.S. for the first time in Q3.
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“Let’s start with the fact that we decided to buy shares in Tesla at the critical moment for this company,” said the Mercedes-Benz Cars head. “We wanted to show the market that we believe in electric drive technology.”
Nine years ago, in May 2009, Daimler, the parent company of Mercedes-Benz, acquired an equity stake of nearly 10% of the Silicon Valley carmaker and the 2 companies were working closely to integrate Tesla’s lithium-ion battery packs and charging electronics into the first 1,000 units of Daimler’s electric smart car.
At the time, the investment enabled the partners to collaborate even more closely on the development of battery systems, electric drive systems and in individual vehicle projects, including the first generation of Mercedes-Benz’s B-Class electric car.
Five years later, in October 2014, Daimler announced that it has sold its stake in the electric car maker for a gain of nearly $800 million.
“However, when Tesla shares went up sharply, we came to the conclusion that since we are not specialists in stock market games, only from building cars, it is better to withdraw. We got rid of the action and I did not regret it for a moment,” Zetsche added.
Two years later (2106), despite repeatedly saying that the Tesla partnership was very successful and will continue, the Stuttgart-based manufacturer stopped working with the electric automaker.
“But this does not preclude cooperation in the future,” said Zetsche in today’s interview, quickly adding that he would prefer that the 2 companies remain competitors still. “This will be good for the automotive market.”
Atherton Research’s Take
Almost 10 years after its initial partnership with Tesla, Mercedes-Benz’s electric strategy is clearly on a bind and the comment from Zetsche could be construed as a call for help.
Earlier this year, the German automaker dissolved its U.S. energy subsidiary that built batteries for residential homes, ending a short-lived challenge to Tesla’s energy storage division, while its first all-electric crossover (EQC) – expected in 2o2o in the U.S. – is no match to today’s Tesla drivetrain, battery, over-the-air updates and autonomous technologies.
Zetsche said last month that he’ll quit Daimler’s top post next May, leaving his chosen successor, the Swedish-born Ola Källenius, to figure out a new vision for the German company’s failed electric vehicle strategy.
CEO of German carmaker Daimler AG and Head of Mercedes-Benz Cars Dieter Zetsche presents the new Mercedes-Benz EQC during the press days of the Paris Motor Show on October 2nd, 2018. (Photo by ERIC PIERMONT / AFP) (Photo credit should read ERIC PIERMONT/AFP/Getty Images)