Herbert Diess said that the customer demand is still there
It will take time to transition to fully electric personal mobility. This is something that everyone in the industry understands. Although there are many efforts by all parties – automakers and governments, as well as energy companies, climate organisations, and consumers – to accelerate the process, many factors determine the pace at which full electrification takes place. Even the biggest players in the industry think it’s too soon to make the switch to electric cars despite all their efforts.
Herbert Diess, CEO of Volkswagen Group, spoke recently at the Financial Times Future of the Car summit. He stated that it was too early for the automotive industry to switch to electric power. Diess said that the problem is not related to customer demand, which is increasing in frequency, but to the infrastructure supporting EV manufacturing and operation. These processes are slower than the pace at which zero-emissions cars are being developed.
Diess stated that “Everything is there for growth, however it takes enormous investment and time to achieve.” We need to modify or build the right plants, have the necessary battery production capacity, and create a sustainable, secure supply chain. To live with the cars, the customer must have the right infrastructure.
Although it might be premature to invest in electric vehicles, Diess believes that the company he leads is capable of becoming the global leader in EV sales. He expressed his belief that Volkswagen will be the world’s leader in electric vehicle sales by 2025, thanks to the large investments over the years. Even though Diess said that he saw a “tight competition” with Tesla, he also admitted that he didn’t expect his main US competitor to be as fast and that there is a step-change in their manufacturing capabilities.
Diess also stated that Volkswagen believes there is great potential in small electric vehicles and that the VW Polo-sized trio of brands from the Volkswagen and Cupra will arrive in 2025. These three models will be built on the MEB Small platform. Diess believes that the demand for small electric cars is high and margins can be made to make them profitable.