The automotive industry is on the brink of a major upheaval due to the arrival of electric vehicles. Not only cars, also delivery vans, trucks, buses – you name it. After the automotive industry tried to pretend for years that nothing serious was going on, it is now increasingly clear that change is unavoidable, and may come much faster than many think. There is presently a lot of arguing and sweating in the board rooms. Some will take right decisions, some will take wrong. Some well-known car companies may survive and prosper – others may disappear ingloriously in the coming years. But change will come.

Thursday, 21 February 2019 23:31

Electric cars are too expensive

Electric vehicles are presently ridiculously expensive. Could be the cost of the battery, couldn’t it? That is only part of the explanation. The other is scale: the production volume is too low to secure economies of scale. And to this comes a lack of competition: existing car producers are not really interested in selling quantities, as they will cannibalize their own profitable traditional car business. The answer is regulation and more competition. Not more subsidies.

We have just seen a flurry of new reports on Climate Change, and they are not funny reading. Before we fall into gloom and accept that the end is nigh, the good news is that with what we already know and the instruments we have at hand, it is absolutely within our reach to avoid the worst climate change scenarios, and the cost is absolutely not scaring. But it needs bold and determined policies and willingness to take risks. The lack of capacity for this is the biggest risk we are facing.