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Byton’s Nanjing Manufacturing Bet Is On Quality, Control, Long-Term Execution

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Published on November 15th, 2019 |

by Nicolas Zart

Byton’s Nanjing Manufacturing Bet Is On Quality, Control, Long-Term Execution

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November 15th, 2019 by Nicolas Zart

Byton doesn’t do anything halfway. That much is obvious by now. The company never shied away from gigantic work and its gargantuan Nanjing production facility is a testament to its ambition. I met Mark Duchesne, who is the Vice President of Manufacturing Operations at Byton, at the Frankfurt Auto Show earlier this year. What he had to tell me was impressive.

Building Customized Manufacturing Plant For Total Control — The Right Manufacturing For Complete Quality Control
Duchesne told me about how his previous experience with Toyota and Tesla helped the task he faced 3 years ago. Taking on a project that size from minus ground zero – as Duchesne likes to say – to where it is now was no small feat. He told me Byton did the right thing compared to how others approached manufacturing plants in the past. In the end, Byton will make its vehicle more affordable from good planning to execution, including contract negotiations, Duchesne notes.

Byton Nanjing Facility, courtesy Byton.

I asked Duchesne if contracting manufacturers isn’t easier and cheaper. His answer was, yes, but there is much less quality control and more chance to lose the long-term goal. Byton made it clear it wanted to have complete control over the high level of quality it was aiming for. It could have chosen a prime location in the heart of Beijing or Shanghai but instead found Nanjing had more potential to build a full manufacturing plant from the ground up. This involved remediation, a ground leveling of up to 1.4 meters, which you can multiply by 800,000 square meters (861,112.83 sq-ft). The plant will have a capacity of 300,000 units annually. Although, for the first year, Byton expects between 100,000 and 150,000 units. This will grow until capacity is reached in another year or so. Overall, it is 8.6 million square feet.

It seems that Byton has truly laid the foundation for a financially sustainable future. The local Nanjing government worked closely with the startup. If it wasn’t the fastest way to do it, it was probably the best approach to controlling quality and costs. He says it was a way for Byton to get the maximum ROI for its investors — more so than if it had outsourced its production needs.

Duchesne made sure he had the right team that understands what to do, and that buys into the mission. This is something he learned at Tesla, that taking care of your employees, respecting and challenging them, is the most important part of the recipe.

Byton On Working With Chinese Workforce
Working in China has its advantages and challenges. Overall, Duchesne said it is different working with a Chinese workforce and that they rise to meet challenges in an impressive way. The Chinese workforce is very motivated to retire the negative “Chinese quality” stigma. He feels that having the best people from other industries and appointing them intelligently in the right places is what makes a successful recipe for a startup. He told me he has the most dedicated team he’s ever worked with. Byton is targeting European quality with an Asian workforce, and Duchesne feels confident his team will deliver that. And remember, your smartphone was built in China at a high quality!

Asked about the production delay of the M-Byte, Duchesne said it is millions of data points that need to come together coherently. Byton had nothing a few years ago and designed a car, with another concept on the way, the factory, hired a workforce it trained, build the factory, and is now putting everything together. The Nanjing manufacturing plant was designed with the final product in mind, something that doesn’t happen often lately. The manufacturing plant is highly flexible and, compared to other startups, Byton has 100% control over the product and the quality.

Byton Nanjing Facility, courtesy Byton.

The company didn’t feel comfortable rushing the M-Byte. That is not the Byton culture, according to Duchesne, who says: “Spending extra time making engineering, software, and assembly to meet the global quality without making rushing mistakes is the name of the game. Too many startups made that mistake of rushing to the market and are no longer around.”

I asked Duchesne how he handles the back and forth between design and manufacturing and how he manages expectations with the reality of production. He said that Benoit Jacob, who is the Vice President of Design, is one of the rare professionals who designs a car that is both stunning and manufacturable. That is one less step manufacturing needs to worry. David Twohig, Chief Technical Officer, whom we will interview next, knows how to balance it all and keep the company steady. What Duchesne brings from Toyota is the planning know-how. From Tesla, he learned that you need to do whatever it takes to make a startup survive. That means finding a way to build the car no matter what.

Byton Nanjing Facility, courtesy Byton.

Byton Nanjing Facility, courtesy Byton.

Byton Nanjing Facility, courtesy Byton.

Byton Builds Its Ideal Manufacturing Plant & Team
Byton culture has been established. Duchesne says he’s witnessed it from the beginning but wasn’t sure at first if it was real. I feel the same. I approached Byton cautiously at first. But its culture is very palpable. There is an indescribable enthusiasm that is tangible from design to manufacturing to the executive level. Waves might come and go, but the people make the culture, and that never changes. Culture comes from passion, and it seems that Byton has it in all the right places.

Byton at 2019 Frankfort Auto Show. Photo by Nicolas Zart, CleanTechnica.

Byton M-byte. Photo courtesy Byton.

Byton M-byte body in white factory photo. Photo courtesy Byton.

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About the Author

Nicolas Zart Nicolas was born and raised around classic cars of the 1920s, but it wasn't until he drove an AC Propulsion eBox and a Tesla Roadster that the light went on. Ever since he has produced green mobility content on various CleanTech outlets since 2007 and found his home on CleanTechnica.

His communication passion led to cover electric vehicles, autonomous vehicles, renewable energy, test drives, podcasts, shoot pictures, and film for various international outlets in print and online. Nicolas offers an in-depth look at the e-mobility world through interviews and the many contacts he has forged in those industries.

His favorite taglines are: “There are more solutions than obstacles.” and “Yesterday's Future Now”

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Tesla = 3rd Most Valuable Automaker In The World

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Published on November 13th, 2019 |

by Johnna Crider

Tesla = 3rd Most Valuable Automaker In The World

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November 13th, 2019 by Johnna Crider

With the companies recent stock price rise, Tesla [TSLA] has surpassed Daimler for the #3 spot on the list of most valuable automakers in the world. This is on the heels of news of Gigafactory 4’s location — Berlin. Many may see Tesla coming to Germany as a slap in the face of some of the legacy automakers, but I see it simply as Tesla establishing another foothold as it climbs its own personal mountain. That mountain is its goal of accelerating society’s transition to 100% sustainable energy.

Tesla took the spot from Daimler in the wee hours of the trading day in Germany — which makes the milestone especially interesting as Elon Musk stands in Berlin. At the time of this writing, Tesla is worth almost $64 billion, while Daimler is worth almost $63 billion. Of course, as the market dances around, the two companies could easily trade places and fight for the #3 spot, or Tesla could slowly (or quickly) climb to the #2 spot and take it from VW.

Eventually, as Tesla continues to progress, many shareholders expect it will take over the #1 spot from Toyota.

Photo by Chanan Bos, CleanTechnica

What Does This Mean For America?
When compared to other vehicles made at other companies, American autos are generally seen as not so great. Toyota is known as one of the safest and most reliable brands among my friends, and Mercedes is the equivalent of luxury. However, this is changing as Tesla continues to dominate the premium-class markets. We see this in somewhat symbolic fashion with Tesla taking Daimler’s spot at number 3.

This is a great thing for the US, as it shows that we are taking a spot at the table among leaders in the industry again. Tesla is seen as a threat to other automakers because of how high tech its cars are. Porsche’s response to Tesla is the Taycan, and although many do love it, not as many love its price tag.

The Porsche Taycan starts at $150,900 while the most powerful Turbo S is $185,000. Fully loaded, it’s $241,500. The Tesla Model S starts at under $100,000, and the Model S Plaid will be lower than Tesla’s competitors — the prices haven’t been announced yet — while offering greater performance. Also, the new 2020 Tesla Roadster will cost around $200,000 and the first few will be $250,000 (those will be the Founder’s Edition), while it will outcompete million-dollar supercar “rivals.”

For the everyday American who goes to work, comes home, and maybe goes out for entertainment a few times a month — they just want a car to get them from point A to point B. This is where the value of Tesla has already come into play as more and more people choose the Model 3 over any other car. Safety is a concern and we already know it’s received top scores in that department. Want fast? Tesla. Want the best autonomous driving tech? Tesla.

What this means for America is that Tesla is already being recognized as a leader in the auto industry and is revitalizing a portion of the manufacturing base. This is something we should be proud of. Tesla is our quarterback. It’s our Drew Brees. (Yes, I’m a Saints fan, WhoDat!) As the European car market and Germany’s auto industry transitions to e-mobility, Tesla will also have a positive force within its borders, boosting the economy and creating jobs. That’s something for all parties to be thankful for.
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About the Author

Johnna Crider Johnna Crider is a Baton Rouge artist, gem and mineral collector, and Tesla shareholder who believes in Elon Musk and Tesla. Elon Musk advised her in 2018 to “Believe in Good.”

Tesla is one of many good things to believe in. You can find Johnna on Twitter

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