Aug. 16 at 1:57 PM
$WRD I looked a little deeper into the reasons for Mercedes-Benz (MB) pivot away from its own ADAS for WeRide/other ADAS options. This topic was in the Q2 earn call.
OEM buy components from suppliers to build their cars (tires, radios, a/c, motors, etc). The same applies to ADAS. If MB learned it cannot compete using its proprietary ADAS, how will other OEM do it? They won't.
MB had huge cost overruns with its Drive Pilot system. McKinsey said MB Level 3 system cost was 4-7 times more than standard ADAS.
MB was charging customers
$2,500 per year subscription or an upfront option of
$7,900 to have it. Their customers said not at that price, even for a MB that cost
$100K. ADAS has its limit even at the high end.
WeRide option is est at
$800 to
$1,500 and is materially lower in cost than FSD.
An OEM does not invest
$1B-
$1.5B.
BOSCH is already dominant in ADAS and the WeRide/BOSCH option is a complete winner.
ADAS at scale is a game changer. Just do the pilots then lock in the deals.
