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Dealers
Bengt Halvorson
In remarks to the automotive and environmental press last week in Seattle, Volkswagen of America president and CEO Stefan Jacoby said that while the automaker is considering electric vehicles along with other alternatives, he does not see EVs or advanced plug-ins becoming a significant portion of the market within the next decade.
“We cannot expect in the next ten years a major change,” said Jacoby, who said that even if electric vehicles become a significant portion of the market, they “will not be affordable to the American middle class.” And that’s before considering the obstacles related to safety, reliability, and durability of battery packs. “We have to be realistic,” he added.
Jacoby said that simply by focusing on many existing technologies that aren’t yet fully implemented, like start/stop and lighter materials, fuel economy can be increased by 50 percent incrementally in the next ten years.
Even since Jacoby took over the reigns of the automaker’s U.S. arm in late 2007, he has noticed a change in American buying attitudes—perhaps a permanent one, he thinks. Today’s U.S. shoppers are less prone to excess, he’s observed, and “people will consider what kind of cars they really need.”
The automaker hasn’t at all shied away from hybrids and plug-ins; it’s currently working on both. Last year it showed a Golf Twin Drive Concept, a plug-in hybrid with a compact lithium-ion battery pack and a TDI diesel engine, and it’s reportedly planning to test the vehicles in a limited fleet.
TDI sales remain a bright spot for the company in the U.S.; nearly 50 percent of Jetta SportWagens and 30 percent of Jetta sedans have been sold as diesels, and overall diesels now make up eight percent of the automaker’s U.S. sales. The 2012 replacement for the current Passat mid-size sedan, to be built in Tennessee, will also have a TDI option.
Stefan JacobyEnlarge Photo In remarks to the automotive and environmental press last week in Seattle, Volkswagen of America president and CEO Stefan Jacoby said that while the automaker is considering electric vehicles along with other alternatives, he does not see EVs or advanced plug-ins becoming a significant portion of the market within the next decade. “We cannot expect in the next ten years a major change,” said Jacoby, who said that even if electric vehicles become a significant portion of the market, they “will not be affordable to the American middle class.” And that’s before considering the obstacles related to safety, reliability, and durability of battery packs. “We have to be realistic,” he added. Jacoby said that simply by focusing on many existing technologies that aren’t yet fully implemented, like start/stop and lighter materials, fuel economy can be increased by 50 percent incrementally in the next ten years. Even since Jacoby took over the reigns of the automaker’s U.S. arm in late 2007, he has noticed a change in American buying attitudes—perhaps a permanent one, he thinks. Today’s U.S. shoppers are less prone to excess, he’s observed, and “people will consider what kind of cars they really need.” The automaker hasn’t at all shied away from hybrids and plug-ins; it’s currently working on both. Last year it showed a Golf Twin Drive Concept, a plug-in hybrid with a compact lithium-ion battery pack and a TDI diesel engine, and it’s reportedly planning to test the vehicles in a limited fleet. TDI sales remain a bright spot for the company in the U.S.; nearly 50 percent of Jetta SportWagens and 30 percent of Jetta sedans have been sold as diesels, and overall diesels now make up eight percent of the automaker’s U.S. sales. The 2012 replacement for the current Passat mid-size sedan, to be built in Tennessee, will also have a TDI option.
Responses (5 total)
By John Rees #1, Posted: 5/15/2009
VW credibility
I question VW's credibility. View my VW experience at: http://reesphotos.com/VW/
By Reece #2, Posted: 5/17/2009
the truth
Finaly someone has the balls to say the truth, electric cars are a good decade off being a real viable solution. The Volt etc are largely marketing exercises to be seen to be doing something, the last thing the car makers need is a load of people buying these things and sending them broke. Probnlems with diesels outsid eof Europe is the cost and the quality of the fuel but these can be overcome. Have Americans really changed? Hard to say, shocked out of their stupor probably but whether it is permanent or not will have to see.
By John Voelcker #3, Posted: 5/18/2009
Jacoby has a long history ...
... of remarks denigrating electric-drive cars. IIRC, last year he said they wouldn't be practical for 30 years.
Much of this is due to 10 years of European makers assuming that diesels would be their solution to tightening US mileage standards. But when gasoline got expensive last summer in the US, diesel got even *more* expensive since it's not granted the substantial tax breaks it is in Europe.
That cost premium, plus US mainstream reluctance to embrace diesels--which suffer from bad legacy PR and an aversion to gassing up next to semis--meant that sales of new "clean diesels" didn't spike as the Euros hoped.
Now they're anxious, and casting around for something to throw stones at.
By Sarah Meyers #4, Posted: 5/18/2009
?
I am skeptical about his comments because EVs have been around since the early 1920s. We know they can be produced at affordable rates - look at the upcoming Tesla economy vehicle that will available in 2 years and what about the unforgettable documentary, "Who killed the electric car?"
By Kumar #5, Posted: 5/30/2009
It's about the freedom to do stuff
Pure EVs will be a low seller for the same reasons SUVs were a huge hit. People loved the idea that they could go wherever, whenever they wanted to, even if they only went off-raod <1% of the time.
With EVs, the drawbacks will be a limitation on range. People won't get them in mass because they want the possibility of that long road trip, even if they never take any.
Sure, you could rent a car for that, but if that argument made sense to the buying public, people wouldn't have been clamoring for 7 and 9 passenger monsters that could tow a house.
Don't get me wrong, EVs will be great as a commuter car, but mainly for city dwellers and as a 2nd car in two car households.
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