Tesla isn’t quite part of the premium segment – BMW CEO Oliver Zipse criticises Tesla’s quality, reliability

Tesla isn’t quite part of the premium segment – BMW CEO Oliver Zipse criticises Tesla’s quality, reliability

BMW CEO Oliver Zipse has, for the second time this year, taken a swipe at Tesla. According to a Bloomberg report, Zipse singled out the US automaker’s quality and reliability as issues that set it apart from BMW.

“Where we differ is our standard on quality and reliability,” he said at a Handelsblatt conference recently. “We have different aspirations on customer satisfaction.” Zipse also said “Tesla isn’t quite part of the premium segment,” and that Tesla is only “growing very strongly via price reductions. We wouldn’t do that since you’ve got to last the distance.”

For some perspective, Tesla is now leading the electric car sales chart in Europe, with the Model 3 (pictured below) being the best-selling EV in Europe in September. In the third quarter alone, Tesla shipped 241,300 cars globally and achieved record revenue and profits. BMW, on the other hand, sold 230,000 cars in the first three quarters combined, which is almost twice that compared to the previous year.


Tesla is also closing in on BMW in Interbrand’s most valuable global brands

Tesla’s bullish growth comes at a time when car manufacturers are facing critical supply issues with semiconductors, forcing production plants to be temporarily shuttered, as well as the deletion of several key features, such as touchscreen functionalities and a fully digital instrumentation.

In a recent earnings call, Tesla said “a variety of challenges, including semiconductor shortages, congestion at ports and rolling blackouts, have been impacting our ability to keep factories running at full speed,” although the company reiterated that it expects to “achieve 50% average annual growth in vehicle deliveries” over a multi-year horizon.

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Matthew H Tong

An ardent believer that fun cars need not be fast and fast cars may not always be fun. Matt advocates the purity and simplicity of manually swapping cogs while coping in silence of its impending doom. Matt's not hot. Never hot.

 

Comments

  • digidigi on Nov 11, 2021 at 10:31 am

    Bmw, your car really more reliable than Tesla?

    Like or Dislike: Thumb up 21 Thumb down 8
    • Avenger on Nov 11, 2021 at 12:22 pm

      BMW driving aids system haven’t killed anyone yet, so I’d say reliable enough?

      Like or Dislike: Thumb up 14 Thumb down 1
  • Absolutely right. It is proven that JD Power said Tesla has lowest rank of quality compare to BMW.

    Like or Dislike: Thumb up 26 Thumb down 2
  • Mohd Yusof Ab Rahman on Nov 11, 2021 at 10:49 am

    Quality and luxury yes I agree with you Mr BMW. Reliability I really doubt BMW is doing any better than Tesla.

    Like or Dislike: Thumb up 21 Thumb down 6
    • BMW, in fact, does score higher than Tesla by a huge margin. At this point, BMW is sitting above industry standards in terms of reliability. Their cars also lead the pack for some segments. They are doing a mega job there. Have a read on JD Power report on vehicle dependability.

      Like or Dislike: Thumb up 17 Thumb down 3
    • Unknown on Nov 11, 2021 at 12:23 pm

      Some say Tesla quality is like Proton quality during Madey era ie Saga LMST, Waja, Gen2 kosong.

      Like or Dislike: Thumb up 10 Thumb down 1
  • Danny Tay on Nov 11, 2021 at 10:57 am

    BMW: Tesla is not reliable.
    Tesla: BMW is not reliable since 1916.

    Like or Dislike: Thumb up 5 Thumb down 14
  • Mr Fakta on Nov 11, 2021 at 11:35 am

    BMW’s Nokia moment

    Like or Dislike: Thumb up 7 Thumb down 3
  • How can an internal combustion engine car betters an electric on reliability baffles me, one has gazillions of moving parts while the other mostly static. When they can’t beat tesla they are trying to confuse potential customers. Salesman at talk here, ignore.

    Like or Dislike: Thumb up 8 Thumb down 21
  • mirage on Nov 11, 2021 at 2:25 pm

    Can you even put BMW and reliability in the same sentence?

    Like or Dislike: Thumb up 4 Thumb down 3
  • Leafable on Nov 11, 2021 at 3:29 pm

    New generation of car buyers are looking for an ipad on wheels. “Sheer Driving Pleasure” doesn’t apply anymore. Autonomous is the future and thats nothing to do about “driving” anymore. Not everyone bother about build quality.

    Like or Dislike: Thumb up 1 Thumb down 4
    • Incorrect. Everyone are bothering on built quality. “Sheer Driving Pleasure” can be everything like performance, handling, features, reliability and others

      Like or Dislike: Thumb up 4 Thumb down 0
  • Flykly on Nov 11, 2021 at 4:44 pm

    Everything spoils in a bmw including electrical cables Lose of power is 50% after 4 years and 80% after 6 years

    Like or Dislike: Thumb up 1 Thumb down 6
  • Everything spoils in a bmw including electrical cables Lose of power is 50% after 4 years and 80% after 6 years

    Like or Dislike: Thumb up 0 Thumb down 7
  • seancorr (Member) on Nov 11, 2021 at 4:54 pm

    BMW isn’t really a reliable brand but yeah they still outrank Tesla in the reliability ranking so they can bash Tesla for it. Tesla needs to up their game in this department in order to gain more market share and yes, their autopilot system still needs some work on it to stop killing people on the road. Elon’s still stubborn in not wanting to use Lidar and keep insisting on pure camera setup when the best solution is to rely on both systems as a fail safe backup.

    Like or Dislike: Thumb up 7 Thumb down 4
  • While Tesla’s reliability from the reports are indeed bad; BMW reliability reputation in our country is not that great either. To be fair, most premium contis have this issue, due to;

    1. The sheer number of parts and complex systems in their cars to test and make sure to work right in our hot & humid climate. Something will bound to be overlooked, intentionally or otherwise.
    2. Lack of proper maintenance on the cars. Some common workshops will just claim they can do anything because of $$$.
    3. Cutting corners when it comes to repairs by technicians or car owners or both.
    4. Proliferation of bad recond units.

    Like or Dislike: Thumb up 1 Thumb down 0
  • Sean Seet on Nov 12, 2021 at 8:26 am

    Waaaa….BMW talks about reliability? Lu sure boh?
    Without 5 years waranty nobody will buy ur car in Malaysia.
    Hahaha

    Like or Dislike: Thumb up 0 Thumb down 3
 

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