
Audi USA CEO Johan de Nysschen
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It's a pretty rare thing to hear the president of a major corporation speak their mind in public. But Audi of America's Johan de Nysschen did just that recently, and got slammed to the mat on the basis of a few choice words - namely, using the term "idiots" to describe Chevrolet Volt buyers.
But that's not the whole story - in fact, the explanation given today of that comment and de Nysschen's views on electric cars was contained, in kernel form, in the original story that led to the explosion on the web. But the typically low-depth, high-speed nature of Internet sensationalism saw little more than a parroting of the "idiot" term around the web - something Motor Authority carefully steered clear of.
The explanation and rebuttal that de Nysschen released today, however, lends itself more readily to rational discourse, and so we'll delve into his assertions as they are offered.
First, de Nysschen offers a clarification of his viewpoint on a quick transition to electric vehicles in general. The problem, in his view, is that mass electrification of the automobile fleet could have secondary and tertiary effects on the infrastructure and economy. While there is a lot of debate on the matter amongst scientists, it is at least a valid concern, though it applies equally to all plug-in hybrids and electrics, not just the Chevy Volt. He is, however, fully behind electrics, as the upcoming R8 ePerformance electric vehicle concept is expected to prove.
Second is the energy shift de Nysschen sees EVs causing, moving from gasoline to coal-fired powerplants, effectively offloading emissions to a different source, but not eliminating or even necessarily reducing them in a total "well-to-wheel" sense. Again, that relies to a degree on his former point, but even if the grid can sustain the electrical load, there will have to be an increase in electricity generation, and that will most likely come in the form of more burnt coal.
Third, de Nysschen addresses the Volt head-on, saying that it is simply not economically feasible at present. The features, size and performance offered are those of a gasoline powered car that costs roughly half as much, according to de Nysschen, so those that pay that premium aren't being economically sensible. Use of taxpayer-funded subsidies, which are already being heavily touted as a way to make the Volt affordable, are proof that the technology isn't currently sustainable in a pure market sense. Further, no amount of fuel savings will recoup the up-front costs.
That's a point we've explained countless times in the past, and applies equally to hybrids and even, in some cases, diesels. But, it also doesn't take into account the fact that many people buy such cars on an ideological basis - to help minimize their environmental impact, to make a statement, or to help support the technology and the companies that produce it in the hopes that it will lead to more and better solutions in the future. Those are perfectly valid reasons to buy such a car, but it's not the smart business choice, for either carmaker or car buyer.
Fourth, he argues that there are better alternatives in the present and near future, including diesel and efficiency-maximizing gasoline engines. He also recognizes that EVs will be effective solutions in the more distant future, once costs of the technology have come down and the infrastructure to support them has grown.
That goes back to his first point, and is a matter of some contention, but is nonetheless a reasonable outlook for the CEO of a car company that's tasked with making decisions to direct his company not just to a greener future, but a profitable present.
Have an opinion?
Mike Posted: 9/4/2009 9:21am PDT
Jtpc Posted: 9/4/2009 10:33am PDT
Second, he has issues with the cost of the Volt, yet my Audi TT roadster quattro cost me $42,000 when I bought it new and it averages 25mpg. So the Volt seems like a fine price seeing it is around that price yet won't cost me any in gas the majority of the time. So yeah, a $40,000 Audi may be faster than a $40,000 Volt, but that's not why I'm buying a Volt. I am getting a Volt because it beats Audi's butt on fuel economy. (and I've read it will be fun to drive as well)
So yes, it will be a wise financial choice. Either way I'm spending $40,000 for my next car. BMW, Lexus, M-B, Audi, etc have cars at that price, but all will cost me more in the long run for the fuel and I will not be helping our dependence on foreign oil if I spend that kind of money and don't get a EREV.
I won't be buying another Audi.
So if you're willing to forego the niceties for a lower fuel bill, it certainly makes sense for you. But at that point, why did you buy an Audi this time instead of a Toyota Prius? The same argument applies there as well...
Gelby Posted: 9/4/2009 1:05pm PDT
I applaud GM and the Volt and the early adopters that will buy them.
jtpc Posted: 9/4/2009 1:15pm PDT
IGT Posted: 9/4/2009 3:32pm PDT
IGT Posted: 9/4/2009 4:37pm PDT
hsr0601 Posted: 9/4/2009 7:10pm PDT
I for one believe that the U.S. will lead the way in an EV field as the meaningful investing in a battery tech was made.
Even excellent hybrid cars and modern diesels are not comparable to EVs in light of fuel economy as the current fuel price went beyond the level of these autos and they failed to overcome this great recession, I guess.
Even when electricity is produced by coal, an electric vehicle will indirectly release less carbon than a liquid fueled vehicle. One source suggests 60% less: http://green.autoblog.com/2009/07/24/study-even-with-electricity-from-coal-electric-vehilces-beat-g/
Overall, It is solidly believed that Nissan Leaf and GM Volt are saving the world, and the other developers that come in a range of 200 to 300 miles between charges are on fast-tract toward mass-market, as well. No Need For Oil dependence And Heartbreaking Wars !
Tom Lakosh Posted: 9/5/2009 11:09am PDT
Dontlie Posted: 9/5/2009 6:50pm PDT
Alister Posted: 9/6/2009 8:19am PDT
Gus Posted: 9/6/2009 12:24pm PDT
Alister Posted: 9/6/2009 12:58pm PDT
J.I. Hosang Posted: 9/7/2009 4:14am PDT
The technology is nos as efficient as the one developed by a few Chinese Automakers.
I keep saying that the best choice would be the Hydrogen, which would delyver water to nature. The costs for produce such volume of electrical energy combined with the ambiental impacts will probably not turn so many countries into that energetic-program.
Best regards,
J.I.Hosang
MarvK Posted: 9/8/2009 11:23am PDT
Worried about the US electrical grid capacity? If Volts are charged at night, there is the capacity to charge literally millions of Volts right now on the existing grid with NO new power plants needed.
Example: In CA we have 18 million vehicles and 33 million residents. PG&E has said that the CA electrical grid could nighttime charge 1,000,000 to 2,000,000 Volts with the existing grid. The energy would come from natural gas burning power plants that run 60% efficient, plus some hydro.
I'd say the Audi exec got caught with his diesel obsession pants down. Jeez, don't diesels run on 70% imported oil???
but,do we beleive GM's figures without an independent test. Me, no.
18 mil. gas powered cars divided by 2 mil EV's =
10 %ish is that enough to offset anything
We have to reduce our electric power plant emissions even without EV's. Nationwide.
I'm sure you paid $40K for your Audi out of your own pocket. $40K for the volt is after a federal subsidy. Who's money is the subsidy ?
Chris Nddie Posted: 8/19/2010 5:20am PDT
ford motors Posted: 9/8/2010 1:21pm PDT
custom logo design Posted: 9/24/2010 11:42pm PDT
Agree with Audi pres that only IDIOT will fork over $42k for it and you can bet that bleeding heart liberals will line up for it than the demand collapses and Hussein will force US government agencies to buy it. Yep our tax $ at work all right.
Read more: http://www.businessinsider.com/audi-president-calls-the-volt-a-car-for-idiots-2009-9#ixzz10WNzrYYr
Matt Posted: 12/7/2010 10:41am PST
So who do you think will take the hit on this come trade in time? It sure ain't going to be the dealer!
Second item is ya stuck with having your vehicle serviced by the dealer.
Another overlooked item is Joe's Garage is not going to want to service these white elephants. Dealers are out on a limb when sending their techs to school because they can very easily find a better paying shop or start their own once they get certified.
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