Tired of Tesla? German Automakers Ready An Electric Blitzkrieg

Audi e-tron Quattro concept. Photo: Reuters

After years of watching Tesla Motors steal sales and attention with the all-electric Tesla Model S, German automakers are finally striking back with several high-volume production EVs of their own — seeking to outflank the California start-up, even as they struggle to make sense of the electric car business.

Three years from now will see the launch of two all-electric models from Audi and Porsche based on concepts revealed at the Frankfurt Motor Show this week. Both the e-tron Quattro and Porsche Mission E production vehicles will feature a range of about 310 miles, with massive floor-mounted lithium-ion battery packs — just like Tesla builds with the Model S sedan and upcoming Model X SUV.

In addition, Mercedes-Benz will have its own unique electric vehicle for high-volume production within a similar time and with a similar driving range. Thomas Weber, Mercedes chief of research and development, says the first volume EV with a Mercedes badge will not be a variant of a current vehicle, but compete in a “new space.”

Those models will join the BMW i3 and i8 electric cars, which BMW execs have said would portend additional all-electric models.

“This is our first bigger volume (electric) car, and we will see how the customer is accepting of that,” said Ulrich Hackenberg, head of research and development for Audi. “If you look over a long time e-mobility will have a very dominant function.”

Porsche Mission E Concept. Photo: Getty

But the new German thrust comes from a different motivation than Tesla’s co-founder and CEO Elon Musk’s near-messianic belief in electric drive as a planet-saving technology. Hackenberg noted that two developments had finally pushed Audi off the fence toward EVs — the development of a large public charging network in Germany, and improvements in battery packs that gave them twice the energy density they had eight years ago.

The e-tron Quattro will have a 95-kWh battery pack, the first time a major automaker has attempted to build something as large as Tesla’s 90 kWh pack — in part, Hackenberg said, because it was now clear a roughly 300-mile range would be required by buyers. Audi wouldn’t discuss the price of its compact SUV, but it will likely cost just less than the $80,000 Tesla Model X.

Even as they build them, the executives speaking in Frankfurt were still unsure what the actual demand was for EVs – especially when incentives like the U.S. government’s $7,500 tax credit were prone to political changes.

“The demand around the world is still weak. Even Tesla on a global scale is in small numbers,” said Mercedes’ Weber. “So far the tech is too expensive. We see demand where the incentives are…and less demand where nothing’s done for the customer.”

Mercedes-Benz Chairman Dieter Zetsche with the Mercedes Concept IAA. Photo: Getty

All three major German luxury makers have gone far further on plug-in hybrids, offering several models spread across their lineup. Executives said they believed a combination of liquid fuel and electric drive would prove far more popular and accessible for buyers who care about fuel economy and the environment.

That said, this was the Frankfurt motor show where the challenge posed by Tesla three years ago was finally accepted.

If a competitor “has revolutionary ideas we have to take care and act very carefully,” said Hackenberg, “because revolutions have the potential to define the business.”