Volkswagen looks to plug into the electric car market right at the outlet
Several state officials and auto makers are pillorying Volkswagen AG’s VLKAY -0.94% plan to sell battery juice to Americans driving electric cars, contending the project more resembles an unfair government-backed windfall than penance for cheating on emissions tests.The German auto giant will build an extensive network of charging stations in the U.S. in coming years, part of a $2 billion, decade-long promotion of environmentally friendly transportation in a market where electric cars are unpopular. The commitment is part of a broader settlement with government officials and consumers after Volkswagen admitted to installing illegal software on nearly 600,000 diesel-powered vehicles in the U.S. that duped emissions tests.
Source: Volkswagen’s Electric Effort Charges Up Detractors – WSJ
It’s easy to imagine the battle for places to plug in an all-electric car could soon look like an airport terminal during a summer weather delay — which if you’ve been lucky enough to avoid, let’s just say it can be like a Black Friday battle royale as travellers hunt for places to plug in their i-thingies and laptops.
Volkswagen stepping into the fray as “punishment” for its circumvention of emissions testing regulations with its diesel cars, offering to build these 450 charging stations, is an interesting development. Of course, they are needed. But what has all the other players in the space up in arms is the realization that the company that owns the charging station also has access to the data as to how and when the cars are being driven, and in turn, how to serve them better.
This is all part of our Disruptive Technology investment theme here at Tematica, and as we put our thematic hats on, we have to wonder, where are the gas providers in this fight? XOM, BP?
