Should GM Lose Sleep Over Tesla?
Should GM fret at the thought of Tesla? The Big 3 automakers had sneered at electric vehicles (EVs) for years, but a slow shift is underway. Ford has its plug-ins with the Fusion Energi and C-MAX Energi; Chrysler, thanks to Fiat, has a little toe in the EV waters with the 500e on California roads; and GM touts the Volt and Spark EV. Speaking of GM, the stodgy automaker may be slowly changing its ways: CEO Dan Akerson told Bloomberg in an interview last week the company is taking a close look at Tesla Motors to gauge how the Silicon Valley upstart could eventually threaten GM’s business.
Considering GM still draws the ire of electric car advocates years after the EV1 saga, Ackerson’s comments might induce eye-rolling. But the road to electrification, while full of potholes, is underway; and speaking of Tesla, the company scored its first profitable quarter this year and has a market capitalization now slightly higher than Fiat. Meanwhile, Ackerson has succeeded in changing GM’s sclerotic and inward-looking company culture. With a new focus on innovation and design, electrification has got to be part of any automaker’s strategy. A close examination of Tesla and its success would only be logical on GM’s behalf.
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