Tesla Motors Announces Major European Distribution Center in the Netherlands

[NigelM]

Today:

New Facility Will Serve as Final Model S Assembly Point, VehicleDistribution Hub and Regional Service Center

PALO ALTO,CA and TILBURG, NETHERLANDS-- (Marketwire) -- 12/12/12 -- As a key step towards beginningworldwide distribution of Model S, TeslaMotors (NASDAQ: TSLA) announced today that it will begin operationsthis month at its new European Distribution Center in Tilburg, Netherlands.This new facility will serve as Tesla's European service and partsheadquarters, as well as the final assembly and distribution point for Model Svehicles sold in Europe.General production of European left-hand drive Model S is planned to begin in March2013.


Tesla's new 62,000 square foot facility is centrally located toenable efficient, timely and cost effective operations throughout Europe.Starting this month, the new distribution center will begin stocking parts forboth the Tesla Roadster and Model S. In addition to parts warehousing, Teslaplans to utilize this facility for vehicle importing operations, final vehicleassembly and distribution, service headquarters, technical training operations,parts remanufacturing, collision repair and more. The new Tesla EuropeanDistribution Center will lead to the creation of approximately 50 jobs in thenext few years.


Tesla's decision to locate the new European Distribution Center inTilburg is the result of almost two years of on-going cooperation betweenTesla, BOM Foreign Investments, NFIA (Netherlands Foreign Investment Agency),CBRE Group, Inc. and the City of Tilburg.


About Model S
ModelS is the world's first premium sedan built from the ground up as anelectric vehicle and has been engineered to elevate the public's expectationsof what a premium sedan can be. At the heart of Model S is the proven Teslapowertrain, delivering both unprecedented range and a thrilling driveexperience. With a rigid body structure, nearly 50/50 weight distribution and aremarkably low center of gravity, Model S offers the responsiveness and agilityexpected from the world's best sports cars while providing the ride quality ofa luxury performance sedan. Model S has received many of the industry's mostprestigious awards and accolades during its first year on the market.


Model S offers multiple battery options that set the benchmark forelectric driving range. All batteries use automotive-grade lithium-ion cellsarranged for optimal energy density, thermal management, and safety.


Without an internal combustion engine or transmission tunnel, theinterior of Model S has more cargo space than any other sedan in its class andincludes a second trunk under the hood. The Model S interior features a 17 inchin-dash touchscreen with Internet capabilities, allowing for streaming radio,web browsing and navigation.


About Tesla
Tesla's goal is to accelerate the world's transition to electricmobility with a full range of increasingly affordable electric cars. California-basedTesla designs and manufactures EVs, as well as EV powertrain components forpartners such as Toyota and Daimler.

Tesla has delivered more than 2,400Roadsters to customers worldwide. Model S, the world's first premium sedan tobe engineered from the ground up as an electric vehicle, began deliveries toU.S. customers in June of this year. Tesla has already received more than13,000 reservations worldwide for Model S.


Individuals interested in employment at the Tesla EuropeanDistribution Center in Tilburg should send resumes and inquiries to tilburgrecruitment@teslamotors.com.

[jcstp]

Tesla Motors opent Europees Distributie Centrum in Tilburg - Brabantse Ontwikkelings Maatschappij

Via googletranslate :

This month the U.S. Tesla Motors opens its European distribution center in Tilburg. For this market leader in the field of electric vehicles Tilburg's strategic location in Europe. In 2013, the first copies of the award-winning Model S Tesla from Tilburg Europe go. "Tilburg is our strategic milestone for European expansion," said Vice President Global Services Joost de Vries of Tesla Motors. With the advent of the center will be an estimated 50 new jobs become available, and in the coming years is expected to follow a number of additional jobs.

In California in the United States-based Tesla Motors plays a leading role in the development and production of electric vehicles. Tesla succeeded in the first all-electric sedan on the market, the Model S. This now winning car accelerates in 4.6 seconds from 0 to 100 km / h without a drop of gasoline to use and can with the 85 kW variant battery unprecedented distance of 500 km accountable. The Model S has been in production since June this year. Tesla has from around the world for more than 13,000 reservations within. The overall production of the Model S for Europe is expected to start in early March 2013.

Tilburg perfect business location
Europe goes for Tesla Motors as one of the key markets for its international growth plans. On entering the European market Tilburg as a location for Tesla meant to play a key role. From the distribution will include logistics, spare parts and maintenance of Tesla products occur in Europe. The Tesla Model S drives later, after the final assembly operations from Tilburg Europe.

"The central location makes us Tilburg in the vicinity of our largest markets are located," said Vice President Global Services Joost de Vries of Tesla Motors. "We consider our office in Tilburg as a strategic milestone for our European expansion. Thanks to the help of the Brabant Development Agency (BOM) and the Netherlands Foreign Investment Agency (NFIA), which for us has been invaluable, we have a perfect location location found in Europe. "

Intensive cooperation
Tesla's choice to Tilburg to establish, was born out of a two-year, intensive cooperation with the BOM, the NFIA, the municipality of Tilburg, CBRE Group (as a real estate advisor Tesla) and DTZ (as representative of owner building Syntrus Achmea). "Together we have Tesla guided through the entire process of finding a suitable location," said Senior Project Investment Promotion Bodo de Wit of the BOM: "We are the company with the information needed for a location decision from the country that the best choice would be to find the definitive establishment location of 19,000 square meters in Tilburg. We have several site visits and property viewings care, acquaintances organized with experts in Brabant in the field of HR and logistics, our guidance taken around fiscal aspects and important contacts between Tesla and the relevant authorities. Now we focus on our activities include recruiting new staff. "

Gain
Tesla Motors is located in Tilburg on industrial Vossenberg and opens its doors this month. "Tesla is a wonderful asset to Tilburg," said Alderman for Economic Affairs Erik Knight. "The city is living proof yet again that its central location and excellent intermodal connections via motorways, railways and water conditions are excellent establishment. In addition, the choice of Tesla clearly Tilburg closely linked to the high-tech and automotive industries in Southern Netherlands as High Tech Campus in Eindhoven and Helmond AutomotiveCampusNL. "

According to Deputy Economy Bert Pauli of the Province of North Brabant, the arrival of Tesla strengthening the Brabant position in the field of electric vehicles. "Tesla's choice to Tilburg in the Netherlands and to establish, in many ways crucial for our province. The company mission regarding the sustainability of electric mobility and energy, is closely related to the focus and skills in this area. The highly developed logistics infrastructure and highly skilled workforce in Brabant offer the company a solid foundation for its expansion in Europe. We welcome the company warmly in our province and look forward to further cooperation on Tesla's road to success. "

[wstuff]

I also read this report on Ameritrade this morning, it also mentioned that cars were going to be assembled there. The european market is going to be HUfor tesla. Europeans are far greener than we are and much more readily adapted to EV's. I think they are going to fly off the shelves there.HUGE

[AustinPowers]

I also read this report on Ameritrade this morning, it also mentioned that cars were going to be assembled there. The european market is going to be HUfor tesla. Europeans are far greener than we are and much more readily adapted to EV's. I think they are going to fly off the shelves there.HUGE

Don't bet on it!

The European market on the whole may be huge, but the market for luxury vehicles like the Model S is not only quite small, but also very demanding.
Many of the shortcomings of the S on the features front (and I am only referring to actual annoyances that come to the surface now that the first cars have been delivered - like the wiper mess, door handle problems - especially in cold weather, the lack of proper interior storage, the wear and tear on the leather edges on the B-pillar etc.) that we early adopters might be willing to accept are no-goes for most prospective buyers in that segment.
And that doesn't even take into account the many features the S doesn't even offer that are considered necessary/desirable to successfully compete in the luxury segment (technically Tesla might call it a "premium" sedan, but as far as pricing is concerned it is a luxury vehicle).

And even though it might be correct that Europeans in general are "greener" than Americans (even though I'm not even sure that this generalization holds true any more), many people in the market for such expensive cars don't care as much about fuel costs / environmental impact of their cars. Otherwise luxury automakers here wouldn't sell ever more cars with ever more horsepower.

And think about the incentives for EV's, that some countries offer but many others don't. At least for the German market (which is one of the largest in Europe) I can say that the Model S will seem like a possibly attractive but very expensive proposition that only few people will be able to afford. And whether those people will actually consider buying an EV by an American newcomer car company with little track record over their usual Merc/BMW/Audi etc. is open to speculation.

I do agree that the S will fly off the shelves in countries like Norway or the Netherlands, where EV's are highly subsidized/incentivized. But those are even smaller markets than the European luxury market itself.

[Yggdrasill]

I think Tesla will probably sell somewhere between 2000 and 5000 Model S per year here in Norway. The biggest problems with the Model S for selling it here is the lack of tow hitch and AWD. Things like lack of top-end features doesn't matter that much, because the Tesla Model S is competing against cars like the VW Passat, Toyota Avensis, Skoda Octavia, Ford Mondeo, Toyota Prius, etc.

TCO over 200 000 km/8 years disregarding maintenance, insurance, remaining value, toll road fees, ferry fees and parking:

85 kWh Tesla Model S including tech package:
Purchase cost: $86,000
Electricity: $4,000
Annual fees: $550

60 kWh Tesla Model S including tech package:
Purchase cost: $76,000
Electricity: $4,000
Annual fees: $550

40 kWh Tesla Model S including tech package:
Purchase cost: $66,000
Electricity: $4,000
Annual fees: $550

VW Passat cheapest 5-door no optionals:
Purchase cost: $51,300
Fuel: $18,600
Annual fees: $3850

Toyota Avensis cheapest 5-door no optionals:
Purchase cost: $46,400
Fuel: $30,300
Annual fees: $3850

Skoda Octavia cheapest 5-door no optionals:
Purchase cost: $40,900
Fuel: $26,600
Annual fees: $3850

Ford Modeo cheapest 5-door no optionals:
Purchase cost: $38,100
Fuel: $14,700
Annual fees: $3850

Toyota Prius cheapest 5-door no optionals:
Purchase cost: $46,500
Fuel: $18,200
Annual fees: $3850

To sum up, arranged by price:

85 kWh Tesla Model S: $90,550
Toyota Avensis: $80,550
60 kWh Tesla Model S: $80,550
VW Passat: $73,750
Skoda Octavia: $71,350
40 kWh Tesla Model S: $70,550
Toyota Prius: $68,550
Ford Modeo: $56,650

Around 15,000 of the mentioned fossil cars are sold in total each year, and I am sure Tesla will seem like a very competitive alternative, so 5000 is not impossible. Especially as I've compared the price of the most basic models with a fairly well equipped Model S. And I haven't factored in that electric cars are exempt from road toll fee, ferry fees, parking fees, and will probably have lower maintenance costs and lower depreciation. And they can drive in the car pool lanes. But most of these other cars are for the most part *primary cars*, used to drive furniture to cabins and the like, so lack of tow hitch and AWD will affect sales. How much remains to be seen.

[widodh]

Again, we are going very offtopic directly It keeps getting back to the pricing of various cars vs the Model S.

I know it's a hot-topic, but still.

ONTOPIC:

I'm actually proud as a fellow dutchman to see Tesla open the European Distribution Center in the Netherlands.

The choice for Tilburg seems to be a good one.

It's:
* Surrounded by highways leading into the country and Belgium and Germany
* Close to the port of Rotterdam
* A lower-cost area then Rotterdam

The only down-side is that it's not that well connected to the rail system. For example the Betuweroute.

Still, very cool to see this become true! I heard this from George Blankenship earlier this year, but it was still to be seen if they would actually open it.

I assume they will have Panasonic ship the batteries to Tilburg directly instead of going to Fremont first, that saves a HUGE amount of shipping.

Same could go for the rims and tires?

[Yggdrasill]

I doubt Panasonic will ship anything directly to the Netherlands. Rememer, they ship cells, not completed battery packs. The battery packs are assembled in Fremont. It's more possible rims and tires are shipped directly to the Netherlands.

[widodh]

I doubt Panasonic will ship anything directly to the Netherlands. Rememer, they ship cells, not completed battery packs. The battery packs are assembled in Fremont. It's more possible rims and tires are shipped directly to the Netherlands.

Ah, indeed. I forgot that.

I doubt that Tesla is going to assemble the battery packs in Tilburg, maybe in a later stage.

[doug]

Actually I think the point would be to assemble the packs more locally.

[VolkerP]

Seems to be the same weird thing as with solar modules. These are installed with a bypass diode. But that is a semiconductor, which have a high customs (douane/Zoll?) penalty. So the module is imported without the diode which is soldered in place afterwards.