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VW’s $15 billion Settlement Might Actually Hurt Electric Cars

Discussion in 'Charging Standards and Infrastructure' started by voyager, Oct 20, 2016.

  1. voyager

    voyager Member

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    Amsterdam, Netherlands
    VW will allocate $2 billion to finance EV education programs and charging infrastructure. But some worry that what appears to be poetic justice—punish VW by making it support cleaner technology—could crush competitors and give the automaker control of a growing market. Chargepoint CEO Pasquale Romano says the deal effectively demands that VW dominate the market for charging infrastructure.

    Um, VW’s Dirty Diesel Settlement Might Actually Be Bad for Electric Cars

    Btw... voted yet? Will you share your Tesla?
     
  2. Jeff N

    Jeff N Active Member

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    #2 Jeff N, Oct 20, 2016
    Last edited: Oct 20, 2016
    There is certainly a threat of that happening. It all depends on how VW spends their money. Do they spend it directly by building charging facilities? Do they subcontract with ChargePoint, EVgo and others to build some or all of the facilities? Also, this has no direct market effects outside of the US.

    Even though this is a settlement with the US government, normal monopoly laws and market/trade laws still apply. If VW used this mandated spending to actually control the market then ChargePoint could sue them under anti-trust law.

    I think all we know for sure at this point is that it will have a big impact on US charging infrastructure. The path towards a truly national high-speed DC charging network comparable to Tesla's Supercharging network was uncertain before this but now seems like a certainty since the $$ are available and it fits VW's larger future business strategy of building EVs with long-range capability.

    The EV education is required to be $25-50 million for each of four 2.5 year installments (although EPA could allow more or less with written approval). They can also spend some money on programs to give free or subsidized EV driving opportunities as part of a public awareness campaign if they get written EPA approval on the specifics.

    Overall, however, the vast majority of the spending has to go towards charging infrastructure -- either EV or fuel cell.

    VW Settlement May Supercharge non-Tesla DC Rollout in US - HybridCars.com
     

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