قالب وردپرس درنا توس
Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Electronic Cars dominate the Frankfurt Auto Show

Electronic Cars dominate the Frankfurt Auto Show



FRANKFURT – Auto manufacturers have plowed tens of billions of dollars into building electric cars and hybrids to comply with more stringent restrictions on tailpipe releases. Now they face the challenge of selling those vehicles.

Volkswagen
AG


VOW 0.28%

Porsche at

Daimler
AG


DMLRY 0.52%

& # 39; s the Mercedes-Benz all-electric model at this week's Frankfurt show going to dealerships. Executives said more hybrids and plug-in models were on their way, as part of a wider push to electrify large portions of their lineups.

However, with prices still high and consumer lukewarm demand for electrics, the industry is calling on the European Governments for assistance, asking for tax subsidies and regulatory reforms to make them more affordable, afford the vehicles and appeal to consumers.

"The electric car won't make it natural. The incentives will play a big role," Volkswagen Chief Executive

Herbert Diess

says. The world's largest automaker has unveiled a new all-electric compact car called ID.3 on Tuesday.

Electricity sales in Europe, which have some of the poorest emission requirements in the world, are still anemic. In the first half of this year, full electric and plug-in hybrid vehicles accounted for just 2.4% of overall vehicle sales in the European Union.

Globally, the market for electric cars remains a small area, but car companies and their parts suppliers say they have little choice but to move most of their research budgets on battery-powered models.

tougher emission policies in Europe, China and the US make it difficult for companies to hit targets for reducing airpipe pollutants. without selling more electrified models. That has prompted many auto makers to pour money into battery technology and build a network of road chargers to support refueling.

Volkswagen, for example, has invested nearly $ 1 billion in Sweden starting Northvolt AB to build a battery factory in Germany.

Profits to auto makers like Daimler and

BMW
AG


BMW 0.06%

has fallen under the weight of substantial investment made in electric cars, but companies say there is no alternative.

"We have to invest and we are better placed than some to pay the price. Electric cars do not come for free," BMW Chief Finance Officer

Nicolas Peter

Said.

Making an electric car generally costs $ 12,000 more than making a comparable petrol car and consistency has been out of reach for almost five years, according to consulting firm McKinsey & Co . The battery alone costs between $ 5,500 to $ 7,700 per vehicle. Mr. Diess of Volkswagen said.

Without a significant breakthrough in technology, auto manufacturers have acknowledged that they will need to rely on volume and economies of scale to help lower prices.

"There is no doubt in our minds that we need to drive. The costs will go down over the next several years," said Daimler CEO Ola Källenius. "You can't influence exactly what customers are buying." This week's Mercedes brand released the concept for a fully electric version of its flagship S-class sedan.