E-Mobility: Many standpoints, one common goal
September 22, 2020
No other topic is currently driving the change in the auto industry as much as electromobility. Commercial fleets, in particular, play a key role in ramping up the electric vehicle market. To examine the challenges involved, Volkswagen Financial Services organized a stakeholder dialog in Berlin together with its long-standing cooperation partner NABU (Naturschutzbund Deutschland e.V.), the German Nature and Biodiversity Conservation Union. In-depth discussions took place with corporate customers, manufacturers, politicians, ministerial representatives, industry associations and NGOs (non-governmental organizations) – always with strict adherence to the hygiene measures and social distancing rules.
One question that came up again and again during the course of the day asked whether the power supply networks will be able to meet the additional electricity requirements for electric vehicles. The good news came from Andrees Gentzsch, Member of the General Executive Management Board of the BDEW, the German Association of Energy and Water Industries: "The networks will manage it. We will have the capacity in Germany for seven to ten million electric vehicles by 2030." However, investments have to be made in the low-voltage distribution grid, he added, because it is not currently possible everywhere for everyone in residential areas to charge their vehicles at a particular time of day at the same time. Something that can already be seen today as positive is the number of existing charging points, Gentzsch insisted. "The expansion of the charging infrastructure must take place in sync with the market ramp-up of the vehicles. With 30,000 charging points now available in Germany, we are well set up at the moment." What we have to do now, he concluded, is to focus on quality rather quantity – for example along the motorways.
Questions posed by the presenter and business journalist Ursula Weidenfeld also focused on the e-mobility funding landscape. Oliver Braune from the National Organization for Hydrogen and Fuel Cell Technology (NOW) gave an overview, admitting at the same time that the interaction of the various funding programs at federal and state level is highly complex. That was why Roman Kasten, a specialist lawyer for traffic and employment law, gave the following tip: "When analyzing and applying for grants and subsidies, I advise bringing in external know-how so that unpleasant surprises can be avoided and having to pay back subsidies does not become a relevant possibility." Derek von Rönn, Head of Business Model Sales E-Mobility at Volkswagen AG, also voiced encouragement to all those in charge of fleets: "You learn how e-mobility works very rapidly as soon as you start with a few vehicles. Then you can scale up quickly. We are currently at the starting point with our electrification. But I think we'll be making our breakthrough in the coming weeks and months".
At the latest during the final discussion, the full complexity of the picture when looking at e-mobility and the changes in mobility showed itself. Cem Özdemir, Member of the German Bundestag for Alliance 90/The Greens and Chairman of the Committee on Transport and Digital Infrastructure in the Bundestag, appealed to the capacity for transformation in the auto industry and criticized the partial devotion to the combustion engine: "The matter is settled. E-mobility will come. The German automotive industry should not cling to old technologies. After all, we all know what happened to companies like Nokia and Telefunken, who failed to recognize the dominant trends." Hildegard Müller, President of the German Association of the Automotive Industry (VDA), agreed in principle with his statement, but also stressed: "The entire industry is under great pressure. That applies to a lot of the component suppliers as well." Daniel Rieger, Head of Transport Policy at NABU, criticized the plug-in hybrid vehicle: "It turns out that the environmental balance of plug-ins is anything but good. Politicians should make adjustments to the financial incentives in this area. Because , ultimately, the question is how much climate protection are taxpayers getting for their money." Armin Villinger put this criticism into perspective: "In its role as an entry technology into e-mobility, we should not demonize the plug-in hybrid. Instead, we should sensitize drivers to use the technology correctly. There are lots of scenarios in which the plug-in hybrid – if used correctly – can play out its strengths. The new generation of vehicles with their higher ranges in electric mode will further substantiate their merit."
Despite the different standpoints and perspectives, everyone agreed in the end that the change from combustion engine to electric mobility is only a matter of time. With their Blue Fleet electromobility program, Volkswagen Financial Services will be supporting their customers on this path.