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Mercedes spends $8bn/year on R&D

caranddriver.com

31–40 of 108 posts

Re: Mercedes spends $8bn/year on R&D

#31
post #24

The cynic in me is already asking: where are the flying cars? They were at the top in F1 until 2021.

Unless energy becomes significantly cheaper we are unlikely to see personal flying cars, and that’s also before you put all the car crashes that happen today and put them above people’s heads.

Please take it as a metaphor of how you can spend USD 8b/year.

Re: Mercedes spends $8bn/year on R&D

#32

Earlier quoted context omitted.

>OK WTF ist most of this? How about not targeting the upper market during inflation? Why? The upper class is the one least affected by inflation. Just look how the stock market is doing. Even in bad times, luxury brands are selling just fine, this has been proven time and time again. Have you seen sales of Bugattis, Ferraris or McLarens slowing down? The problem is, VW is not a luxury brand, it's an expensive commodi…

Then how did we end up with Volkswagen's situation? Selling 100 cars for 20k each sounds better than selling 2 for 200k.

>Then how did we end up with Volkswagen's situation?

Upper class don't buy VW.

VW is a posh brand for the middle class which has now been wiped out by inflation and rising CoL, that's why they aren't selling.

I'm surprised I have to spell out obvious stuff like this.

Re: Mercedes spends $8bn/year on R&D

#34
post #24

The cynic in me is already asking: where are the flying cars? They were at the top in F1 until 2021.

Unless energy becomes significantly cheaper we are unlikely to see personal flying cars, and that’s also before you put all the car crashes that happen today and put them above people’s heads.

> we are unlikely to see personal flying cars

There's already a few being developed, but that's not going to be for the peons e.g. pal-v started taking orders for Liberty this year, and apparently the price tag is somewhere between half and a mil.

Re: Mercedes spends $8bn/year on R&D

#35
post #22

Earlier quoted context omitted.

If you knew VW, it has way more people on payroll doing nothing for huge salaries than Imma-fire-80%-of-people Elon. Love him or hate him, he gets shit done.

He does get shit done. Sometimes it's good shit, other times it's just shit. That cost-cutting approach worked with turning Tesla from the butt of (quite reasonable at the time) jokes about "Death Watch" because they kept needing more and more investment money, into the success they are today. It utterly failed with Twitter, which has lost most of its revenue and is constantly running into legal issues.

I don't see the failure in Twitter. It's a platform capable of influencing elections, that's definitely worth more than people think.

It lost revenue since advertisers don't like the platform's freedom of speech, and Elon won't give them control of what's allowed on the platform. Advertisers want control, they don't want free speech. Why do you think You tube removed the downvote counter? Advertisers pay not just to how their stuff but to also be able to control the narrative. If crowds of people are allowed to freely light a brand on fire on Twitter, why would they pay to advertise there?

Meta paid like 22 Billion for WhatsApp which is hardly bringing in revenue.

Re: Mercedes spends $8bn/year on R&D

#36
post #22

Earlier quoted context omitted.

If you knew VW, it has way more people on payroll doing nothing for huge salaries than Imma-fire-80%-of-people Elon. Love him or hate him, he gets shit done.

He does get shit done. Sometimes it's good shit, other times it's just shit. That cost-cutting approach worked with turning Tesla from the butt of (quite reasonable at the time) jokes about "Death Watch" because they kept needing more and more investment money, into the success they are today. It utterly failed with Twitter, which has lost most of its revenue and is constantly running into legal issues.

By your own statement, people said the same things about Tesla in the past which they do about Twitter today. That alone should be pretty strong evidence that it's too soon to tell if his approach with Twitter has failed. Maybe it will fail, maybe not, but either way I think it's too soon to call.

Re: Mercedes spends $8bn/year on R&D

#37

I haven’t worked in a revenue positive company for over 5 years. But prior to that, once a year, someone would sit at my desk asking for anything I did was “new” and how so. In the states, any “research” work is a tax write off. I wouldn’t be surprised if Mercedes is using this as well.

It's not just taxes, it's also important for your balance sheet. Which I imagine is important to a publicly listed company like Mercedes. If you pay someone $100.000 and they don't create anything, that's money you lost. But if you spend $100.000 on research or development (two subtly different things) there is the expectation that they created at least $100.000 of value that will be realized in future years. You didn't lose money, you converted it from cash to intangible assets, simply a different line on your balance sheet.

The tax benefits more or less derive from that, along with the general consensus that we should encourage companies to invest into the future.

Re: Mercedes spends $8bn/year on R&D

#38
post #31

Earlier quoted context omitted.

Unless energy becomes significantly cheaper we are unlikely to see personal flying cars, and that’s also before you put all the car crashes that happen today and put them above people’s heads.

Please take it as a metaphor of how you can spend USD 8b/year.

https://www.pal-v.com/en/

Re: Mercedes spends $8bn/year on R&D

#39
post #24

The cynic in me is already asking: where are the flying cars? They were at the top in F1 until 2021.

Thing about flying cars is that you can either have a good car or a good aircraft. Having both combined is worse at both and more expensive at both. Not to mention the headache of dealing with the FAA and whoever does vehicles to get it air and road worthy.

In any case, we have helicopters which embodies the spirit of a flying car

Re: Mercedes spends $8bn/year on R&D

#40
Apart from the sinister assumptions one could make about the spending, I assume that Mercedes is obviously waisting a whole lot of money on this. Why? Because trying to merge electrical technology with mechanical technology in a highly safety-demanding environment means rigorous testing before 5 year old tech makes its way into the market only to be superseded by newer technologies that can be installed separately.

The culture of invent and fail fast just doesn’t work here.

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