The president of the German VDA car industry association, Bernhard Mattes, was quoted as saying that without the investment, the EU’s CO2 2030 targets could not be achieved. ”The ramp-up of electric mobility is coming in Europe,” he said.
More than 40 billion euros will be invested in electric vehicles and another 18 billion will be invested in digitisation, connected and automated driving. Within three years the number of EVs from German automakers would treble to around 100.
It’s not just EU regulation driving this. While Tesla remains small in comparison, the big three German automakers now seem determined to wipe out its first player advantage through sheer scale.
The combined push by German (and North American) OEMs to ramp up EV production is exactly what some analysts have predicted all along, to push out new entrants.
As its recent troubles have shown, Tesla cannot begin to match the economies of scale of the incumbent OEMs. Manufacturers are also willing to co-operate on mobility ventures
and other projects to reduce costs.