September 29, 2016

A VOLT MAY BE YOUR ONLY OPTION FOR YOUR NEXT CAR:

Car Makers Rev Up Push Into Electric Vehicles (WILLIAM BOSTON, Sept. 29, 2016, WSJ)

At the Paris Auto Show, which begins this week, major auto makers unveiled plans to accelerate development of electric vehicles over the next few years.

Volkswagen AG, still reeling from its emissions cheating scandal sought to show it had cleaned up its act. It presented a concept vehicle, a prototype of a battery-powered, fully self-driving Golf that the company said could go into mass production in 2020. The company is planning to introduce 30 new electric vehicle models by 2025.

"This car is to fight Tesla and the others, not our conventional competitors," said Herbert Diess, head of the Volkswagen passenger-car brand. "We have to take them very seriously. It's not rocket science. The other competitors are making great progress."

Until now, government incentives have driven the adoption of electric vehicles in many markets. Norway and the Netherlands, two of the smallest auto markets, became the biggest markets for electric vehicles through subsidies and other incentives to promote electric cars, which are still more expensive than conventional gasoline and diesel vehicles.

But over the next decade stricter emissions targets in Europe, the U.S. and China will increase the costs of developing conventional combustion engines. Falling battery costs will also make electric vehicles more competitive. By 2030, AlixPartners, a consultancy, predicts that electric vehicles will largely replace diesel, especially in smaller cars.

"This will go down as one of those years where it all started to change," says Andrew Bergbaum, managing director at AlixPartners.

Posted by at September 29, 2016 7:31 PM

  

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