Damage Control? Audi President Clarifies "Idiot" Comments About Volt Buyers

Damage Control?  Audi President Clarifies
An online report today, subsequently picked up by various other forums, left an unflattering sense of my feelings toward electric vehicles and the people who support their development. Let me clearly state that, in my opinion, electric vehicles will be part of the future transportation of society – but only if we go about it the right way. In fact, Audi is working on electric vehicles.

I do not specifically recall using the term "car for idiots" during my informal conversation with the writer. It was certainly not my intention to leave the impression that I'm opposed to electrical vehicles, and if I was unclear on either of those points then I need to eat crow.

What I do recall is the essence of my contention, namely that the feasibility of the Chevrolet Volt as a concept is questionable. And that policy decisions – and the industry's reactions to those decisions – are leading us toward a technology that may sound tempting on the surface, but, as of now, also contains many deep and unsolved economic and technological compromises.

"Mass electrification" of the vehicles on American roads could lead to problems like a strained electric grid. Large-scale utilization of electric vehicles will require massive investment in new power stations that are much cleaner than the ones in use in the U.S. today. Otherwise, it could merely shift greenhouse gas emissions from the tailpipes of cars to the smokestacks of coal-burning utilities. That's not just my opinion. The California Air Resource Board this past April concluded that electric vehicles presently are second only to hydrogen cars in greenhouse gas impact when measured on a well-to-wheel basis.

Returning to the Volt, my point was simply one of its economic feasibility today. The 50% or so price increase that the Volt represents over a similar gasoline car cannot be offset through the savings from reduced fuel consumption. The only way to offset the extreme premium for the Volt is through taxpayer-funded subsidies. So I question if that makes economic sense.

Does that mean the Volt and other electric vehicles are forever impractical? Of course not.

In recent broadcast interviews, discussions with journalists and meetings with policy makers I have asserted that the future of automotive transportation lies not in any one "silver bullet", but in a range of technologies that meet different needs – all while lowering emissions and fuel consumption. That includes plug-in electric cars when technological and economic hurdles make them more practical. It includes hybrid vehicles. And it includes clean diesel along with substantially more efficient takes on today's gasoline internal combustion engines.

Admittedly I am a passionate advocate for the role that clean diesel technology can play in easing this nation's challenges. Cutting through misperceptions about clean diesel and other technologies can be frustrating. If you'd like to hear my thoughts on these issues, go to a video of my recent remarks at www.audiusanews.com. Meanwhile, know that we are working toward a more sustainable future.


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AgentOrangeAgentOrange - 9/4/2009 12:42:25 PM
+9 Boost
I'll bet a few Audi speech writers worked all night on that baby..


NostradamusNostradamus - 9/4/2009 12:58:09 PM
+9 Boost
What's to 'clarify'?

He said what he said, and there was absolutely no ambiguity in his words.

Now he needs to just be a man and live with the consequences!


thstonethstone - 9/4/2009 6:48:27 PM
+2 Boost
Let's do some quick math...

2009 Chevy Malibu 4-cyl base model. $22,000. EPA 25mpg combined.
2010 Chevy Volt. Battery/gas hybrid. $45,000. EAP 200mpg combined.
Gas: $3.00 per gal
Miles driven per year: 15,000

Operating costs:
2009 Chevy Malibu = $1,800 per year
2010 Chevy Volt = $225 per year
Payback Period: 14.6 years

Subsidies:
$2,500: Payback in 13.0 years
$5,000: Payback in 11.4 years
$7,500: Payback in 9.8 years
$10,000: Payback in 8.2 years

Assuming a useful life of 10 years, the break-even payback economic subsidy would be around $7,000.

HOWEVER, if gas goes to $4.00/gal, then the original $45,000 price is paid back with fuel savings in 10 years (with no subsidy required).

BINGO! Guess what gas price GM is assuming for the next 3-5 years? (If you answered $4/gal, give yourself an "A").


truckmantruckman - 9/5/2009 3:33:13 AM
+2 Boost
One thing that you never took into account is that the Volt only has around a 40 mile all electric range, and when the gas generator kicks in its around 30ish mpg, so the calculation that you did is based on the best case scenario, so the time it would take to justify the price would be not 7 years but more like 20ish based on gas price that you pointed out.


theoptimisticpessimisttheoptimisticpessimist - 9/5/2009 11:57:49 AM
+2 Boost
Reports peg the price closer to high 30's than 45K.

http://gm-volt.com/2009/03/27/gm-chevy-volt-price-depends-on-cost-of-gas-and-will-be-set-in-may-2010/



theoptimisticpessimisttheoptimisticpessimist - 9/5/2009 12:00:14 PM
+2 Boost
thstone

Good info. good research, thanks.


inspirion7inspirion7 - 9/5/2009 2:27:12 PM
+2 Boost
Bottom line, most individuals crying like little girls are the ones looking to loose the most. Audi/VW need to compete against the Ampera next year,and with diesel vehicles only, there isn't apple to apple products. Toyota's cash cow Prius will fight against the Volt even if the Volt will cost more, people are emotional purchasers and will by the Volt. If the car is half as good as what the blogs have been reporting, then for most its an up hill battle because Chevy is in almost every sector of the world now. Image curve is harder to catch up with and pass than technology.


veyron1001veyron1001 - 9/8/2009 11:04:03 AM
+1 Boost
Yea the "Buy American" joke is why GM got away with making such crappy cars to begin with. Also an electric generator hybrid is a step back from a gas/electric powered hybrid.


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