Mercedes U.S. Head Steve Cannon Criticizes Tesla, Says Long-term Outlook is Poor
April 22, 2014 9:42 AM
2015 Mercedes-Benz S500 Plug-In Hybrid
Cannon says Tesla wont be alone in the premium EV space forever
Tesla may be a smaller automaker, but the major carmakers out there can’t deny that the EVs Tesla produce are very popular and -- for the moment -- successful. At last week's New York Auto Show, Mercedes U.S. head Steve Cannon criticized Tesla, saying that the EV maker has "no network" and operates "little shops that don’t have service capability."
“Folks are buying a Tesla now because they’re kind of cool, but if you’re a Tesla buyer, you have to have multiple cars,” said Cannon. He also indicated that the infrastructure for EVs wouldn't hold up to mass demand.
Cannon made the Tesla comments when talk of Mercedes' plans to add more plug-in hybrid cars to its line came up. He also believes that the Mercedes plug-in hybrids will give drivers a more viable option than Tesla.
“Tesla is great, but you’ve got plenty of well-established brands that mean luxury, like Porsche or Mercedes-Benz, and how long do you think we’re going to wait and let Tesla be out there alone [selling premium electric cars]?” he said. “So, good job, Tesla, but will they be able to maintain that with the others of us out in the market? That remains to be seen.”
Tesla Model S
Cannon says that Mercedes is able to cater to luxury buyers with a complete luxury experience when servicing the car, which is something Tesla can’t do. He also touts Mercedes and its multiple powertrain options as something Tesla can’t match.
Mercedes is investing heavily in
plug-in hybrid vehicles
for the U.S. market.
"Google fired a shot heard 'round the world, and now a second American company has answered the call to defend the rights of the Chinese people." -- Rep. Christopher H. Smith (R-N.J.)
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