Daimler – Page 1569 – I wish I had more to offer

Capital One: Value of Luxury Gas Cars Getting Slammed by Tesla Model 3

Invest
Electric Cars
Electric Car Benefits
Electric Car Sales
Solar Energy Rocks
RSS
Advertise
Privacy Policy

Cars

Published on October 6th, 2019 |

by Zachary Shahan

Capital One: Value of Luxury Gas Cars Getting Slammed by Tesla Model 3

Twitter
LinkedIn
Facebook

October 6th, 2019 by Zachary Shahan

We talked at length about it years ago at a CleanTechnica conference in Berlin. The night the Tesla Model 3 was first shown to the public, it also crossed our minds. Kyle Field and I were on the test track — only sharing the road and driveway with a few Tesla employees, a black matte Tesla Model 3 prototype, a silver Tesla Model 3 prototype, and a couple of other Teslas. In the 20 minute video I shared of that extremely lucky test track experience (but not the 10 minute abridged video), I didn’t interrupt the fun sounds of the test track fog shooters and the smoothly rolling Teslas very much, but while talking with a Tesla employee near the beginning I laughed a bit out of my awe for the beautiful, super fresh Model 3 and what it would mean for the auto industry. I was picturing elite auto giants in the board room of BMW and Audi sobbing. This was a disruptor, a truly disruptive product that would transform the auto industry, starting with the luxury car market.

A couple of weeks later, at our first Cleantech Revolution Tour conference, in Berlin, we discussed a matter that seemed absolutely imminent: a crash in luxury gas and diesel car resale values. The ramifications of a disruptive new electric luxury car that genuinely embarrasses the Audi A4, Mercedes C-Class, and BMW 3 Series are manifold, but perhaps one of the biggest is that strong depreciation of these previous industry leaders could be disastrous for their parent companies and further accelerate the switch to electric transport.

Notably, a crash in resale values means leasing companies have to increase what they charge customers — otherwise, they’ll lose money on the cars over time. Raising leasing prices means that those vehicles become less competitive, which means fewer people leasing.

An employee of one of the largest auto leasing companies in Europe told me a couple years ago that the CEO of the company had already committed to a quick transition to 100% electric vehicles as a result. It would simply be bad business management to walk into a collapsing market and financial crisis. All he had to do was look the superiority of the Tesla Model 3 and reflect on where the market was headed.

Normal new car buyers may be slower to pick up on the market trends. If they didn’t put down money for a Model 3 reservation or at least jump into the crowd once production ramped up, there’s a good chance they’re simply out of touch. So, it should come as a surprise when they bring their 2018, 2019, and 2020 BMW 320i, Audi A4, or Mercedes C300 “luxury automobiles” to auto dealers or the private used car market and find they lost far more value than the consumers anticipated. Nonetheless, that is what’s going to happen, and that is what’s starting to happen.

No, this is no longer just CleanTechnica saying so. It is not simply Teslarati and Teslamondo saying so. It is Capital One saying so. As the non-analyst tweeting above highlights, Capital One now says that the Tesla Model 3 is “wreaking havoc” on the used luxury car market — that is, the used luxury gas and diesel car market. To Tesla owners, the most confusing part of that some people still consider those cars luxury cars. They have horrible, non-luxury drive quality compared to a Model 3. They have horrible, non-luxury tech compared to a Model 3. The don’t meet the safety level or performance of a Model 3. The interiors or cluttered with old technology, knobs, buttons, and an antiquated interior design. Perhaps we’re Tesla fanboys and fangirls, but there are many reasons for that, and the fan population is growing fast.

Nonetheless, it’s both surprising and exciting that such a mainstream, establishment company like Capital One is publishing the news. It does not mince words. Here’s the headline and summary statement:

The report also notes that 22.2% of Tesla buyers are trading in European luxury vehicles when buying their Teslas.

The searing reflection of market trends, perhaps written by a Tesla owner, sounds more like something you’d find on CleanTechnica than in Capital One’s Learning Center:

“The decisions car-buyers make are increasingly on the side of technology—or more specifically, Tesla’s version of it—than the traditional luxury cars that have long been industry benchmarks. What does that mean? Tesla’s sales successes are wreaking havoc on the pre-owned luxury car market. Once-strong demand for European luxury brands like Mercedes, Audi, and BMW is evaporating as buyers that used to spring for premium luxury sedans now want a Tesla. Any Tesla.”

But it’s absolutely true.

Not only are European luxury vehicle owners trading in those cars for Teslas, but the Tesla Model 3 is setting a whole new frame for what is possible from an entry-level luxury car. It is demolishing previous sales records in those markets and competing in the mainstream car market with the likes of the Toyota Camry and Honda Accord — as it should. Good luck, Audi. Good luck, BMW. Good luck, Mercedes.

The Capital One report is about the US market, but the Model 3 is the #1 best selling automobile (of all classes and vehicle types) in the Netherlands and Norway this year. The base version of that car just started getting delivered to many of those markets, and the higher trim is just starting to make its way to Australia, Japan, South Africa, etc. The disruption is just beginning. The signs are clear, and Capital One has even felt compelled to coin a term around this transition:

“In particular, Tesla’s Model 3 went from zero to over 140,000 units faster than any other luxury vehicle had before, and the demand for new Teslas is, in a very real sense, driving the used car market. With buyer after buyer trading in a still new-ish luxury vehicle for a brand-new Tesla, traditional luxury brands appear to be traded-in more frequently than all American and Korean manufacturers combined.

“Tesla now gets European vehicles as trade-ins 22.2% of the time—more than double the industry average of 10.9%. Because of this uptick, the market is becoming flooded with more affordable cars from Mercedes, Audi, BMW and the like—without a corresponding increase in demand.

“We’re calling this The Tesla Effect. It’s strong enough to cause prices to plummet, because the market has an excess supply of used luxury cars.”

It is a great article and analysis from Capital One, even if it comes a few years after CleanTechnica was blasting this message out from microphones and keyboards around the world. Of course, they needed to wait on some proof and robust figures, not in the same market of forecasting and speculation we are sometimes in. The good news is that we are arriving. A short stop for some Supercharging and I’m sure we’ll be back with more exhilarating analysis and fast-paced note-taking.

In the meantime, we should perhaps recognize that Capital One wasn’t the first to use the term “Tesla Effect.” Almost exactly one year ago, Paul Sankey of Mizuho Securities used the term on CNBC while talking about oil stocks. Without a doubt, “Tesla effect” will mean different things to different industries. We’ll keep you updated as recognition of that effect soars.

About the Author

Zachary Shahan Zach is tryin' to help society help itself one word at a time. He spends most of his time here on CleanTechnica as its director and chief editor. He's also the CEO of Important Media. Zach is recognized globally as an electric vehicle, solar energy, and energy storage expert. He has presented about cleantech at conferences in India, the UAE, Ukraine, Poland, Germany, the Netherlands, the USA, Canada, and Curaçao.

Zach has long-term investments in Tesla [TSLA] — after years of covering solar and EVs, he simply has a lot of faith in this company and feels like it is a good cleantech company to invest in. But he offers no investment advice and does not recommend investing in Tesla or any other company.

Advertise with CleanTechnica to get your company in front of millions of monthly readers.

Press: Formula E: ZF Becomes “Official Powertrain Partner” of Mahindra Racing

The first test bench tests and test drives of the newly developed driveline, which builds on the successful ZF development status of recent years, are currently being planned for the beginning of next year. In addition to the electric motor, development includes both a single-gear, highly efficient transmission and power electronics, which have been specifically… Continue reading Press: Formula E: ZF Becomes “Official Powertrain Partner” of Mahindra Racing

Monday Morning Auto News, Oct 07, 2019

Volvo and Geely to Merge Engine Operations in Electric Car Push – Bloomberg: Volvo and Geely to Merge Engine Operations in Electric Car Push Bloomberg
VW in talks to share its electric know-how – The Detroit News: Ford agreed earlier this year to use VW”s main electric-car platform for a high-volume car in Europe
Volvo and Geely to merge combustion-engine programmes – Autocar: Volvo engine New engine division will focus on hybrid development, while Volvo will push resour…
Week 4: As UAW GM strike takes its toll, workers vow they’re more committed than ever – Freep: Sounds of gospel music filled what was once the gymnasium in the old Gundry School, now a church with deep connections to GM’s factory workers.
Move to close training center emerges in midst of GM-UAW contract talks – Freep: Key issues remain on the table between GM and the UAW and one of those is the training center embroiled in part of a federal corruption probe.
Harley struggles to fire up new generation of riders with electric bike debut – CNBC: The bike costs nearly as much as a Tesla Model 3, and aims for a market that does not really exist: young, “green” and affluent first-time motorcyclists.
Mercedes-Benz sales soar to record on back of boost from China – FT: Mercedes-Benz sales soar to record on back of boost from China

Swedish EV firm NEVS to sell final new Saab 9-3 this month – Autocar: An unused crash test model from 2013 will be auctioned to raise funds for sustainable mobility res…
1964 Olympic cauldron returns ‘home’ to Saitama Pref. after touring disaster-hit areas – Mainichi: … diameter and weighs approximately 4 metric tons, was created by local metal worker Mannosuke Suzuki and his son Bungo, both now deceased.
Volvo, Geely to merge combustion engine operations – Reuters: Volvo, Geely to merge combustion engine operations Reuters
New Aston Martin Vantage Roadster: first images released – Autocar: V8-powered drop-top will take on the Porsche 911 Cabriolet with over 500bhp and a price tag around…
Analysis: How China is fuelling Volkswagen’s electric dream – Autocar: Volkswagen”s global ID models will be joined by China-only variants Volkswagen”s ambitious EV p…
Jobless claims up around U.S. amid GM strike – The Detroit News: As 46,000 walk picket lines outside GM facilities in 19 states, thousands laid off because of the strike are waiting for a call to return to work.
When harm comes from safety tech, what to do? – Automotive News: More than 800 motorists have lodged complaints about false positive incidents on Nissan Rogues with automated emergency braking systems.
FCA chief cleans up the messes of a legend – Automotive News: When Mike Manley was thrust into the role of CEO of Fiat Chrysler Automobiles in 2018 as his predecessor, Sergio Marchionne, lay dying, the …
V2X might speed progress on the road to autonomy – Automotive News: At the time, only Tesla appeared to be working towards “fake human” driving, by which I mean, relying on cameras/visible spectrum and using artificial …
Peugeot to ditch GTi badge? – Autocar: Peugeot to ditch GTi badge? NZ Autocar

Cupertino Taps Via to Provide New On-Demand Public Transportation Network

Published October 7, 2019 9:00 am, Via NYC
Cupertino Taps Via to Provide New On-Demand Public Transportation Network
Residents
and commuters will soon be able to hail a Via anywhere within the City of
Cupertino, improving public transit and enabling easier connections to CalTrain

October
7, 2019 (CUPERTINO, CA) — The City of Cupertino will
soon offer a new on-demand public transportation network in partnership with
Via, a cutting-edge provider of on-demand public mobility solutions. Starting
October 29, residents and commuters in Cupertino will be able to use the Via
app (or phone reservation system) to hail a shuttle directly from their mobile
devices, providing more efficient connections to CalTrain and increasing
connectivity across the city.

Unlike traditional bus networks that rely on
routes and schedules, Cupertino’s new partnership with Via allows riders to
hail a shared ride right when they need it. The on-demand transit network will
span 11-square-miles — the entirety of the City of Cupertino — with a satellite
zone surrounding the Sunnyvale CalTrain station for commuters. By making public
transportation more comfortable, convenient and affordable, city leaders hope
to encourage residents to leave their private vehicles at home, reducing
traffic congestion and vehicle emissions.

“This partnership with Via is the next
generation of what public transportation can be, allowing us to increase
mobility while taking a step toward our larger goal of reducing traffic
congestion across Cupertino,” said Mayor Steven Scharf.

Using the Via app (iOS and Android), riders will be able to hail a
shuttle directly from their smartphone or tablet. Via’s advanced algorithms
will enable multiple riders to seamlessly share the same vehicle. The powerful
technology will direct passengers to a nearby virtual bus stop within a short
walking distance for pick up and drop off, allowing for quick and efficient
shared trips without lengthy detours, or inconvenient fixed routes and schedules.

“Via’s powerful technology is seamlessly
integrating with public transit infrastructure around the globe, redefining the
way people get around cities,” said Daniel Ramot, co-founder and CEO of
Via. “We’re delighted to join forces with city leadership to bring this
cutting-edge, on-demand shuttle system to Cupertino, providing residents with a
convenient, affordable, and congestion-reducing dynamic transportation
alternative.”

Via will operate at $5 per ride, with weekly
and monthly passes available for just $17 a week and $60 a month. Service will
operate Monday through Friday from 6 a.m. to 8 p.m., and on Saturdays from 9
a.m. to 5 p.m.

In partnership with Avis Budget Group, the
service will start with six Cupertino-branded Mercedes Metris vans, which seat
six passengers in addition to a driver, growing to 10 vehicles over time. The
fleet will also include a wheelchair accessible vehicle for riders needing
greater accessibility. Avis Budget Group helps to provide turnkey fleet
management service, including maintaining the vehicles to ensure they are ready
to hit the road and provide on-demand public mobility solutions to the City of
Cupertino.

Via has been tapped by cities and
transportation players around the world to help re-engineer public transit from
a regulated system of rigid routes and schedules to a fully dynamic, on-demand
network. Neighboring cities like Los Angeles, Pacifica, Marin, West Sacramento
and Orange County also use Via’s technology to operate on-demand transit
networks, as do some of the world’s largest transportation authorities. Via now
has more than 80 launched and pending deployments in over 20 countries,
providing more than 60 million rides to date.

About
Via

Via is re-engineering public transit, from a
regulated system of rigid routes and schedules to a fully dynamic, on-demand
network. Via’s mobile app connects multiple passengers who are headed the same
way, allowing riders to seamlessly share a premium vehicle. First launched in
New York City in September 2013, the Via platform operates in the United States
and in Europe through its joint venture with Mercedes-Benz Vans, ViaVan. Via’s
technology is also deployed worldwide through dozens of partner projects with
public transportation agencies, private transit operators, taxi fleets, private
companies, and universities, seamlessly integrating with public transit
infrastructure to power cutting-edge on-demand mobility. For more information,
visit www.platform.ridewithvia.com.

07. Oct 2019Mercedes-Benz achieves new September record and best-ever third quarter

In the Europe region, 99,092 Mercedes-Benz vehicles were handed over to customers last month (+8.2%). Unit sales since beginning of this year rose for the first time in this region in 2019, with 692,533 units representing an increase of 0.5%. In the core market of Germany, double-digit growth was achieved for the third consecutive month… Continue reading 07. Oct 2019Mercedes-Benz achieves new September record and best-ever third quarter

Mercedes-Benz sales rise to record on back of boost from China

Record-breaking car sales in Asian powerhouse helps lift German brand in third quarter Go to Source

Road map E: Audi in the era of electric mobility

Consistently electric Audi is becoming a provider of integrated, carbon-neutral premium mobility with the goal of taking the leadership role in the competition. To this end, the manufacturer is accelerating its electrification road map and company-wide decarbonization. By 2025, the carbon footprint of the vehicle fleet across the entire life cycle is to be reduced… Continue reading Road map E: Audi in the era of electric mobility

Sports car brand belongs to Daimler shareholder Li Shufu: How the Chinese revive the myth Lotus

It’s been two years since Geely founder Li Shufu (56) appointed former Lotus boss Jean-Marc Gales (57) to the Hanghzou headquarters. He had just signed the contract that secured him a majority stake in British sports car maker Lotus. And he already knew what he wanted next: a car that never existed before. Very fast,… Continue reading Sports car brand belongs to Daimler shareholder Li Shufu: How the Chinese revive the myth Lotus

Mercedes-Benz achieves new September record and best-ever third quarter

223,838 vehicles with the three-pointed star were sold worldwide in September – a new record for this month due to a double-digit growth (+10.4%). Car deliveries from Mercedes-Benz rose worldwide from July to September with 590,514 units to a new record for the third quarter (+12.2%). In China, the Stuttgart-based company with the star even… Continue reading Mercedes-Benz achieves new September record and best-ever third quarter

City of Birmingham Selects Via for On-Demand Bus Service

Published September 24, 2019 7:35 pm, Via NYC
City of Birmingham Selects Via for On-Demand Bus Service
The partnership will extend access to public transportation with on-demand microtransit technology

September 25, 2019 (Birmingham, AL)– Via, the world’s leading provider and developer of on-demand public mobility solutions, announced today a partnership with the City of Birmingham and the Community Foundation of Greater Birmingham for a six-month dynamic, on-demand shared ride service that will complement, extend and fill the gaps in existing public transit infrastructure in select areas of the city that need it most.

“We’re delighted to partner with the City of Birmingham to provide an affordable, convenient, and reliable transportation option for residents,” said Daniel Ramot, co-founder and CEO of Via. “Via’s powerful passenger matching and vehicle routing algorithm is the solution to improving access in transportation deserts, seamlessly integrating into the existing public transit infrastructure to connect residents to work, education, healthcare, and opportunities in their communities.”

“We have been looking for additional layers of service to support the transportation needs of our residents. Through this partnership with the Community Foundation of Greater Birmingham, we are confident Via’s innovative transportation system will offer an additional option for on-demand transportation to our residents with an emphasis on connecting them with the services they need on a daily basis,” Mayor Randall Woodfin said. “We are proud to add another tool to our toolbox as well as joining more than 80 cities and partners who have worked with Via to provide innovation to public transportation.”

Via’s advanced algorithm enables multiple riders to seamlessly share a single vehicle. The powerful technology directs passengers to a nearby corner – a virtual bus stop – for pick up and drop off, allowing for quick and efficient shared trips without lengthy detours, or inconvenient fixed routes and schedules. The service zone was specifically designed to provide affordable and efficient transportation for high-need and underserved communities, and will operate Monday through Friday from 6 a.m. to 8 p.m. and Saturday from 10 a.m. to 8 p.m. Riders can request a wheelchair accessible vehicle should they indicate it is needed.

“The on-demand and curbside service allows more flexibility and convenience for me in traveling from my home to the doctor and shopping,” said Amy Thornton of Elyton Village. “I’m particularly pleased that it will also service disabled travelers as well.”

“I’m particularly happy this will serve the western communities,” said Dora Sims, president of the Five Points West Community. “We have a number of seniors who can really benefit from it. It enhances our mobility to get to jobs and important visits like doctor’s appointments. This is a big plus.”

Via has been tapped by cities and transportation players around the world to help re-engineer public transit from a regulated system of rigid routes and schedules to a fully dynamic, on-demand network. Via now has more than 80 launched and pending deployments in nearly 20 countries, providing more than 60 million rides to date.

About Via:
Via is re-engineering public transit, from a regulated system of rigid routes and schedules to a fully dynamic, on-demand network. Via’s mobile app connects multiple passengers who are headed the same way, allowing riders to seamlessly share a premium vehicle. First launched in New York City in September 2013, the Via platform operates in the United States and in Europe through its joint venture with Mercedes-Benz Vans, ViaVan. Via’s technology is also deployed worldwide through dozens of partner projects with public transportation agencies, private transit operators, taxi fleets, private companies, and universities, seamlessly integrating with public transit infrastructure to power cutting-edge on-demand mobility. For more information, visit www.platform.ridewithvia.com.