Item — HN Reader

The Model S is extremely simply from a drivetrain perspective. AC motor <-> energy transfer management <-> energy storage

Chevy Volt: AC motor <-> energy storage <-> onboard generator

So I can keep my Model S reservation and shell out $600/year on top of the $50K+ purchase, or I can purchase a Volt and have a generous warranty I don't need to pay extra for.

Hard choice for the practical among us.

1 comments

The Volt is even more complex; IIRC in some scenarios (such as when driving at high speed with a low battery) the internal combustion engine can also provide power to the drive train through mechanical means.

I was not implying that it was less complex. I chuckled about the suggestion that because the Volt was more complex, Tesla maintenance should be cheaper. Once does not imply the other.

Do note that the additional 'complexity' of a combustion engine actually makes several things much easier, not in the least the fact that running dry is far less likely, power to all systems is pretty much guaranteed, etc.

Of note and relevant: http://www.complex.com/rides/2012/09/general-motors-is-losin...

Oh, I was just noting that the Volt's system for getting power to the wheels is more complex than the "series hybrid" it is widely believed to be. I.E., the engine is not merely just a generator, as it is the case of the Fisker Karma. (It was late, and I wasn't actually making a comment on the cost justification of the maintenance program.)

But I agree that the pricing of the maintenance program should be independent of the complexity of the vehicle architecture. One is an engineering decision, the other is largely marketing & customer relations (not to the exclusion of financials, of course).

As far as Tesla's choice to price their program at $600 a year, it seems in poor form for a luxury priced vehicle. To me, the hallmark of a true "concierge" level of service (which is what Musk indicated as their goal) would be that it's included in the vehicle price, at least for the first few years, a la BMW. Beyond that, perhaps they should just take a page from Apple's book, and offer an extended "Tesla Care" warranty program to continue the service.

$600 a year seems like petty nickle and diming your customer if you're already charging them 80 to 100K for the car.

I think the argument was that the Volt is more complex, but still has a much lower maintenance cost. If Tesla is worried about ongoing service costs eating their bottom line, include the price in the car, don't tack it on as a "service contract" this late in the process.

At $600/year and assuming a 10 year vehicle life, that's an additional $6000 towards the vehicle purchase price. People buying a Model S aren't going to flinch at that (myself included); demanding it as a yearly service fee and creating fear about losing your warranty is disingenuous at best.