Musk creates a cult of production hellNovember 20, 2019
Europe does not need another car factory, according to Business Insider. It would be much more profitable for Tesla to buy one of the existing ones and start production in the near future.
Last week, Tesla CEO Ilon Musk announced the construction of a new Gigafactory in Germany. It will become the fourth plant of the company: two work in the USA, one more – in China. But if the appearance of a factory in China is justified, given the pace of consumption of electric vehicles and the desire of Western firms to produce where you sell, then Europe is another matter.
Europe’s automotive market is large and developed, and its growth potential is not very large. What the impact of electrification will be under the influence of increasing pressure from governments and fuel economy standards is not yet clear.
However, electric cars will definitely not solve the problem of market oversaturation. Europe does not need new car factories, writes Business Insider.
In this context, the decision to build a new factory in Europe seems, to put it mildly, mysterious. There are a lot of factories that the owners would gladly sell the Mask. For example, Ford has reduced the number of plants in Europe from 23 to 18. There are also qualified contractors who are ready to start assembling Tesla cars faster than the construction is completed. However, building a new one, of course, is cooler than buying an old one.
Without a doubt, Musk produces high-quality cars. But at the same time he creates a cult of “production hell”, incomprehensible to industry professionals who know how to bring the car to mass production for a year or two. Germany has become especially adept at this.
Musk is the greatest car dealer of the living. But when it comes to assembly, his genius passes. He constantly complicates the process and chooses a roundabout way, although simple – at arm’s length.
As a result, he and his staff heroically overcome difficulties. But over time, even hell becomes boring. In order to sell more electric vehicles, it is not necessary to build another factory where they are not needed.
Moreover, problems with the production part are not the only strange feature of Tesla’s business. After the company started working on the assembly line, a new problem arose – how to quickly deliver finished machines to dissatisfied customers. In a conversation with employees, Musk repeatedly compared Tesla with Amazon – and not for the better.
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