Volkswagen is acting like a startup
While most legacy automakers still dismiss Tesla’s achievements, Volkswagen currently shows more than admiration and in some ways even tries to blindly follow Tesla’s formula for success.
Tesla’s formula is simple and smart. When production capacity is low, focus on more profitable models – that can have paid software upgrades. Nowadays, this successful formula seems to be a no-brainer for startups that have limited resources, but does it make sense for the world’s biggest automaker?
Now that Volkswagen realized that it doesn’t need the electric triplets UpMiiGo to comply with mild EU emissions regulations, it can follow Tesla’s formula and focus on more profitable models made on the new MEB platform. Why wouldn’t Volkswagen follow a formula with proven success?
The difference is that with very limited resources Tesla had to follow this formula to survive, while Volkswagen is doing it just for convenience.
World’s biggest automaker has all the resources it needs to aim higher and should have electric cars in every segment, from ten million euros hypercars to affordable small cars that cost little more than 10.000 euros.
With the VW electric triplets out of the way, suddenly the Renault Twingo ZE and Dacia Spring seem great electric cars in the more affordable car segment. VW just did a favor to the Renault Group and leaves a door open for Chinese automakers that are eager to arrive in Europe with affordable electric cars.
The A-segment is especially important in Europe, where many people don’t want to buy polluting ICE (Internal Combustion Engine) cars, but also can’t afford a 30.000 euros electric car. This segment is also very important for rental and carsharing services.
On the positive side, Volkswagen discontinuing the popular electric triplets instead of increasing production proves one thing. It’s not the customers that don’t want electric cars, it’s the legacy automakers…
What do you think about Volkswagen’s strategy of focusing solely on highly profitable electric cars?