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July 18, 2023 12:00 AM

Why 'speed is king' with Nio, Tesla, Lucid

ZF CEO Holger Klein said being fast is better than being perfect with software-focused brands.

Douglas A. Bolduc
Managing Editor of Automotive News Europe
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    NIo William Li and ZF Holger Klein

    Nio CEO William Li (left) and ZF CEO Holger Klein are photographed last October in Germany. ZF and Nio are working together to develop steer-by-wire solutions.

    ZF CEO Holger Klein says that brands such as Tesla, Nio, Xpeng and Lucid are pushing the German supplier in a different way than traditional automakers.

    "They have a different expectation on speed," he said. "Speed is king."

    Therefore, these brands want ZF's newest solutions as quickly as possible, even if some bugs haven't been fully eliminated.

    "If your latest innovation feature doesn't work as reliably as you would expect from a German premium brand, it's somehow OK," he told Automotive News Europe during a recent roundtable discussion at the supplier's headquarters in Friedrichshafen, Germany. "This happens when the customer wants a particular car and a particular function and is willing to accept some deficiencies."

    While Klein emphasized that ZF won't compromise on its proven development processes or skip quality steps, it knows that the newcomers – and their customers -- will be tolerant.

    "I think that makes many of them faster," he said. "It is demanding to keep pace with this speed."

    But it can also be rewarding.

    Klein said that because the newcomers approach the business differently they sometimes see opportunities where others see failure.

    He used ZF's foldable steering wheel as an example. He said when ZF presented it the reaction was harsh.

    The Rinspeed Etos that debuted at the 2016 Geneva auto show has a ZF steering wheel that can retract (right). ZF will reveal the first customer for the wheel this year.

    "Everybody was saying, ‘Ha, ha! You believe Level 4 or 5 [autonomous driving] will happen tomorrow, but it won't. Therefore, your steering wheel is totally useless'," he said.

    Looked at from a different perspective, a foldable steering wheel might be coveted by someone waiting in a parking lot for family members who are shopping or at basketball practice. If the steering wheel folded away it would be more enjoyable to watch a movie on the car's infotainment screen.

    "Hey, if I would have full visibility of this, wouldn't that be a nice feature?" Klein said. "not because you are in a Level 4 vehicle, but because you want to enjoy the movie."

    Klein said that ZF will be offering the feature "in the coming months in China."

    The CEO said he appreciates that there are a slew of fresh ideas that are coming forward as the industry evolves.

    "Sometimes we are perhaps a little bit too much in our boxes," he said. "For me, this is the beauty of software-defined cars because people come in with different ideas."

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