Electronics and Semiconductors

Volkswagen CEO: Biden presidency will be better for electric cars

10 November 2020
Volkswagen's CEO said that a Biden presidency is more aligned with the company's strategy for electric vehicles. Source: Pixabay

German carmaker Volkswagen believes that a victory for Joe Biden in the U.S. presidential election will benefit the electric vehicle (EV) market.

The announcement came last week while the election was still uncalled as Herbert Diess, the CEO of Volkswagen told Bloomberg that “a Democratic program probably would be more aligned with our worldwide strategy” and help “fight climate change.”

Volkswagen said it plans to sell about 22 million EVs worldwide by 2028 as part of a transition to an all-electric fleet in the coming years. Volkswagen recently upped its investments from $9.1 billion to $21.5 billion through 2023 to spend on both EVs and autonomous vehicles. Late last year, Volkswagen rolled out its first EV, the ID.3 vehicle, with 100,000 electric models to be rolled out in 2020 before the COVID-19 pandemic and 330,000 vehicles expected to be rolled out by 2021.

The market for EVs is expanding rapidly as consumer interest is growing in the cars due to the popularity of Tesla Motors’ vehicles as well as to help mitigate growing environmental issues due to climate change. Additionally, studies have shown that consumers can save as much as $14,500 on fuel costs over the span of 15 years of driving an EV compared to a combustion engine vehicle.

Most automotive OEMs are spending billions to develop an EV presence to compete with Tesla and take advantage of the growing consumer interest and increasing government mandates for cleaner vehicles. The market has also grown to include several automotive startups looking to grab a piece of the pie including EHang, Byton and Li Auto in China; Lucid Air, Fisker and Faraday Future in the U.S. and many more.

Despite the outbreak of the COVID-19 pandemic, EV sales are expected to match those sold in 2019, showing consumer desire for the vehicles despite a downturn in the economy and an uptick in social distancing. However, consumers still want these vehicles to cost less and provide significant range to quell range anxiety.

To contact the author of this article, email PBrown@globalspec.com

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