Tech rivals new worry for luxury car-makers
Google, Apple and Tesla are now a bigger threat to Mercedes-Benz than traditional rivals Audi and BMW, according to Daimler boss Dr Dieter Zetsche. By
Google, Apple and Tesla are now a bigger threat to MercedesBenz than traditional rivals Audi and BMW, according to Daimler boss Dr Dieter Zetsche.
Speaking at the media launch of the upcoming Mercedes-Benz S-class cabriolet, Zetsche talked openly about the new challenge from technology giants such as Google and Apple, neither of which has produced a single car, but each of which is pouring hundreds of millions into what most expect to be game changers for a very mature industry.
‘‘Now we don’t see BMW and Audi as our main benchmarks any more, but we see the tech companies as much as our benchmark,’’ said Zetsche of the threat from companies best known for consumer electronics and internet software.
It’s a marked change from even a few months ago, when Mercedes-Benz executives were more likely to brush off the imminent threat from soon-to-be four-wheeled players. The Google car is a low-speed cityfocused pod with limited opportunities, they reasoned. And Tesla is still tiny and insignificant.
It seems the unprecedented excitement and demand for the planned Tesla Model 3 – with claimed pre-orders of over 300,000 cars – that has Zetsche taking more notice of start-up car companies than he has previously.
‘‘The only mistake you shouldn’t make is to take a defensive path but consider every view, competitor... as a welcome challenge to be measured against and that’s exactly how we look at it.’’
But Zetsche acknowledges history and tradition are stacked against the company that produced the first car in 1886.
‘‘Historically, when these kinds of new S-curves developed in certain markets, most of the companies that are prior players are not the dominant new players any more,’’ he said. ‘‘Whether it’s steam locomotives versus electric locomotives, or prop engines versus jet engines, you name it.
‘‘So the statistics aren’t speaking for us. Our clear path and objective is to beat the odds.’’
Key to changing a possible downward spiral is fast tracking a pure electric car to rival those from Tesla.
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