Volkswagen CEO Claims Adopting EVs Can Possibly Crash the Automotive Industry

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【Summary】The CEO of Volkswagen group has shown concerns about the fallout that the German Automotive Industry would have to face due to the growing popularity of EVs

Manish Kharinta    Oct 27, 2018 11:00 AM PT
Volkswagen CEO Claims Adopting EVs Can Possibly Crash the Automotive Industry

Volkswagen has been very supportive of its subsidiary, Porsche's venture which promises to electrify the company's offerings. Porsche's soon-to-hit-production, Taycan will come with its own brand new, next-generation ultra-fast charging infrastructure which the company promises will be twice as fast as Tesla's current setup. 

Volkswagen has already confirmed and promoted its plans to enter the plug-in hybrid and EV segment. In the past, other than official statements issued by Volkswagen, the company has not presented any tangible evidence of its progress in this electrification venture. 

The electrification dive would have been a redeeming move for the Volkswagen group, in light of the Dieselgate scandal.

The company is also struggling with delays, plan changes and negativity towards electric vehicles, which is spreading across the German automotive industry. In Europe, governments are working on stricter laws which will be instated to reduce their carbon footprint and persuade customers to adopt electric vehicles. 

The German automotive industry and Parliament came to a compromise of reducing carbon emissions 35 percent by the year 2030. Initially, the Parliament was demanding for a 40 percent reduction, which was then countered by the German automotive Industry with a reduced target of 30 percent.

The fully-electric Volkswagen ID hatchback concept

German automotive Industry's counterproposal is a result of the fact that the infrastructure required for electrification of these cars is very expensive. Even the process of producing a sustainable electric vehicle is challenging, expensive and complicated. 

Tesla, a pioneer in this segment also faced production challenges and delays

Volkswagen's attempt at becoming an electric vehicle manufacturer will cost the company more money than it would if VW were to continue the production of its traditional gas and diesel models.

The company has released several reports disclosing its target of producing a wide range of electric models by the year 2025. However, the CEO of Volkswagen Group Herbert Diess showed his concerns about the fallout that the German automotive industry would have to face if this venture succeeds. Diess believes that strict emission laws designed to promote sales of EVs would result in the crash of the current German automotive industry. 

Diess reasoned that if these emissions requirements are not reduced, not only will the entire German auto industry would crash but around 100,000 employees will also possibly lose their jobs. For this reason, he is heading a petition requesting a reduction in emissions requirements.

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