EVs good, or EVs bad? Auto execs (and politicians) can't make up their mind.
Isn’t it nice to hear auto industry executives talking about electric vehicles these days? It’s very encouraging to hear how “all in” their companies are on the EV revolution, and how much our grandchildren will benefit from it.
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Above: Tesla Model 3 parked next to Audi e-tron (Source: Evannex; Photo by Casey Murphy)
Why, just last week, Audi CEO Marcus Duesmann said: “E-mobility is by far the most efficient way to defossil. That’s why we’re expanding our portfolio to over 20 models by 2026.”
Glad to hear this! But… wait a minute. We remember an Audi CEO named Marcus Duesmann, who said in July 2020 that ICE vehicles “will live for a very long time. That’s why we continue to invest extensively in combustion engine development.”
Is this the same Her Duismann? We are pretty sure it is. Isn’t it unusual for an executive to make two such seemingly contradictory statements in the span of two years?
Absolutely not. Here’s what Stelantis CEO Carlos Tavares had to say at a recent press event: “Trust me a lot, I’m trying not to be cocky, just trust the fact that we’re going to catch up with Tesla over the next few years.” And it’s going to be a very healthy competition. Well that’s great for the consumer.”
Three months earlier, in December, he was singing a very sad song, telling Reuters that “external pressure” [from government regulators, or from Tesla?] There was a threat to jobs at automakers to accelerate the transition to EVs, and that the cost of transitioning to EVs would be “beyond the limits” of sustaining the auto industry. “What has been decided is to levy on electrification of the automotive industry which brings about 50% additional cost compared to a conventional vehicle,” he said. “There is no way we can transfer 50% of the additional cost to the end consumer as the majority of the middle class will not be able to pay.”
Why do executions jump from one side of the logic to the other? Can’t they make up their mind? The cynical interpretation is that they convey different messages to different audiences. When he speaks to left-leaning media, he is full of praise for electric vehicles, renewable energy, and grandchildren. When they address shareholders (who fear low profit margins) or labor union representatives (who fear job losses), they reassure their listeners that they will slow down the scary transition to EVs, and Will keep those profitable ICEs alive for as long as they can. And the comments about “jobs” and “middle class” are clearly aimed at politicians—Mr. Tavares’ lament can be read as an appeal for government subsidies.
There is also a more optimistic prospect: These leaders are changing their minds in response to changing circumstances. They read the news. Popular EV models are sold for years to come, Tesla is delivering high-performance EVs to the heart of Europe’s auto industry (and making a healthy profit), and the Western world’s oil addiction is funding a murderous war. Even in the heart of Europe. The handwriting is all over the wall. If Duesman, Tavares and others are honest about their conversions, they deserve praise and support.
It’s not just auto execs that put on their flip-flops when the weather changes. Ontario Premier Doug Ford, longtime bogeyman for EV enthusiasts, now claims to see electric lights.
In 2018, Ford’s government scrapped Ontario’s EV rebate program, and scrapped a cap-and-trade alliance with Quebec and California, which provides $$$ each year to fund EV subsidies and charging infrastructure. was bringing in 2 billion. In 2019, he removed EV chargers from transit lots, and canceled other green energy projects.
In November 2021, he changed his tune: “We are going to be the number one manufacturer of electric battery-powered cars in North America. We are not only going to make batteries here, but we are also manufacturing cars.
Ford has made it clear that their reversal of polarity has to do with the June election. “Before the election, I didn’t believe in discounting millionaires… $100,000 Tesla cars. Nothing against Tesla, they’re gorgeous cars.” [but] I just didn’t believe in him. Let’s see how the market decides. We’re pouring billions and billions of dollars into the electric vehicle market, into companies.”
This may sound encouraging, as far as it goes, but it’s important to remember that politicians operate in a world different from auto industry execs. Once they are re-elected, they can and often do forget the promises they made during the campaign. Ford, leader of Ontario’s Progressive Conservative (aka Tory) party, will face opponents from the more left-leaning New Democratic and Liberal parties, who are more likely to prove champions of electrification, among others.
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written by: Charles Morris
was published
Audi, Electric Vehicles, Stelantis, Tesla, Tesla News, TSLA
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