Audi of America President Says In 10 Years’ Time, Up To 40 Automotive Brands Will Sell Only Battery Electric Vehicles

2 months ago by Eric Loveday 29

Audi Q8 Concept

Speaking to the J.D. Power Automotive Summit ahead of the NADA Convention and Exhibition, Audi of America President Scott Keogh made some bold statements in regards to the future of electric vehicles.

According to Keogh, Audi will embrace EVs and he fully expects the franchised Audi dealers to do the same.

“Do we want to jump in and compete? Without a doubt. We have the resources, the scale, the infrastructure, the customers (and) the dealers to compete in this new order.”

He’s referring to plug-ins in the statement above.

Audi Q8 Concept

Keogh added

“All this fright about where am I going to get a charge is going to go away extremely fast. The technology on this front is moving at a staggering pace. You’re going to be looking at a marketplace in the next seven, eight, nine, 10 years where for 30 or 40 some brands their entire business is going to be battery-electric vehicles.”

Presumably Keogh believes that Audi will be among those 30 to 40 brands to go battery-electric only. The automaker has already promised at least three long-range BEVs by 2020, with dozens to follow a few years after that.

In regards to the dealership model and EVs, Keogh stated:

“We have to look at alternative channels and start to make money.”

“These cars are going to have to be fixed less. But you’re going to have a host of opportunities around the battery and helping the customer in their home.”

“You have the customers, you have the scale, you have the (marketplace) presence. You need to become the 1-stop shop (on electrification). You need to be a part of their whole electric ecosystem.”

This may well be the first time we’ve heard an auto exec specifically address dealers on the fact that battery-electric cars will change the whole dealership model. And it’s certainly the first time we’ve heard an exec explain that new ways will have to be found to “make money” at the dealership level.

Source: Ward’s Auto

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30 responses to "Audi of America President Says In 10 Years’ Time, Up To 40 Automotive Brands Will Sell Only Battery Electric Vehicles"

  1. SparkEV says:

    I doubt Audi would say such things if they didn’t get caught with Dieselgate.

    As for their customers, I’m not buying any Audi and will recommend others from doing so until they fix their stupid commercial. Girls should be told they could be anything they want to be, not some perpetual victim.

    1. R.S says:

      I’ve always said diesel gate will turn out to be good for VW(and Audi) in the end. In a way like with GM and their bankruptcy, which made them to rethink their business strategy and not only rely on big petrol SUVs.

    2. Rightofthepeople says:

      I agree that dieselgate was the catalyst here, but IMO it only sped things up, would have happened eventually.

      Regarding that goofy commercial, my interpretation is that was also dieselgate related. Liberals are the group primarily offended by dieselgate, and liberals would be more likely to view that commercial favorably. That was Audi’s (weak) attempt to pander to the group it has offended. Just my $0.02 on the matter.

      1. Nick says:

        Why would liberals be more offended by dieselgate vs conservatives?

        I don’t think it’s fair to tar conservatives with this brush. Conservatives value not being lied to and having clean air to breathe just as much as anyone else.

    3. speculawyer says:

      It is probably much more than dieselgate.

      I listened to a podcast with the ProTerra CEO (electric bus maker) and he said that the product roadmaps for the next few years of all the battery makers indicate battery price drops.

      We are around breakeven for an EV with TCO now . . . with further battery price drops, it just won’t make economic sense to stick with noisy stinky ICE.

  2. Kim Jorgensen says:

    “You need to be a part of their whole electric ecosystem.” _ He might as well have said; we need to do like Tesla, Gigafactory and Solarcity (now also Tesla) All the majors are being slowed down by their investments in ICE, Tesla are doing well by not having that problem. If you haven’t noticed by now, I’m actually pro Tesla, just a bit:-))

    1. R.S says:

      I don’t necessarily think he means that they will have to produce PV, but the Dealers will probably need to sell them. Alongside with chargers and so on.

      It is going to get tougher to make money on cars alone. So for dealers the message here is:

      “Shrink in size, or expand your portfolio.”

      1. TomArt says:

        I agree. Good points.

  3. Alan says:

    It would be nice if Tesla & others offered V2H systems to compliment Solar PV & Battery storage.

    One or two do including Nissan but it’s only available in Japan currently I believe.

    1. Doggydogworld says:

      You’re right about V2H, Alan. Utility-scale PV is now the cheapest form of electricity in sunny regions. Mid-day is the new “off-peak rate” in such regions. Instead of putting panels on houses where installation costs 3-5x as much and output is 10-50% less, just have EVs suck up that cheap mid-day solar while parked at work. Then use a part of the car’s charge to power the home during the expensive 5-9pm peak demand time.

      1. John says:

        I’m really surprised Tesla hasn’t jumped all over this yet. Course, I assume they’d rather sell you a few PowerWalls than let you use the giant battery already plugged in the garage…

        1. Pushmi-Pullyu says:

          Presumably Tesla isn’t foolish enough to help car owners wear out their battery pack faster by enabling V2G or V2H tech. In fact, since Tesla guarantees its battery packs for 8 years, it would be incredibly stupid for them to do that. Tesla would wind up paying for people wearing out their battery packs faster than necessary!

          Now, I can see the argument that it should be possible to enable V2H for emergency use; in case of a power outage. But certainly not on a daily or weekly basis!

          1. Jake Brake says:

            Tesla Warranty doesnt cover battery capacity or power degredation. Or you could just not read the fine print and believe someone would sign up for some unlimited life battery.

  4. What would be nice on the Energy Front, is that each Solar PV Panel could hold and store 4-8-12 hours worth of captured energy by said panel: Example, a 250 Watt panel actually has an integrated storage capacity, in kWh, of 1-2-3 kWh, which equals 4-8-12 hours worth of peak solar production by that 250 Watt panel.

    1. John says:

      I’ve got a 15kW system on my roof…I really don’t think I want 45kWh of batteries up there with it…I worry enough about the panels and wiring getting hot in the summer (120+) and freezing in the winter (20 below).

      Kansas gets the crap end of the weather stick!

      1. ffbj says:

        I did read somewhere that ducks fly upside down over Kansas. Since it’s not worth a crap, and as SS would say, your word not mine.

        (j.k. about Kansas, on a clear day you can see it all just standing in one place).

        1. Pushmi-Pullyu says:

          My grandparents had a farm in western Kansas, about 50 miles from the Colorado border (near Garden City, if you know the local area), where it did indeed seem that if you stood on a chair you could see the entire State!

          But here in eastern Kansas (Kansas City area), it’s actually fairly hilly. Topographically, only the western 2/3 of Kansas is flat as a tabletop, having once been at the bottom of an inland sea.

  5. Sublime says:

    I wonder if this statement was in response to the interviewer asking about Smart going 100% BEV next year.

  6. Get Real says:

    Scott Keogh is a smart man who tells it like it is.

    Reminds me of Stefand Niemand, director of Audi EV program and his remark that Tesla has done “everything right” to make BEVs viable:

    http://insideevs.com/audis-electromobility-boss-i-hate-to-admit-it-but-tesla-did-everything-right/

    Now if we could just get the other laggards to adapt to the inevitable future.

  7. Stan1 says:

    Funny how this diverges so much from the slow, drawn out scenarios put by the IEA: https://www.iea.org/publications/freepublications/publication/Global_EV_Outlook_2016.pdf

    Of course it fits perfectly with expected li-ion cost decline curves and all previous tech revolution history.

  8. ffbj says:

    In other news: The sun’l come up tomorrow –Annie.

  9. pjwood1 says:

    “We have the resources, the scale,” the stranded assets.

    1. Rob Stark says:

      ICE engineers and factory workers, transmission engineers and factory workers.

      Legacy automakers are up to their eyeballs with employees with the wrong skills.

      1. JIMJFOX says:

        Re-training will not be at all difficult.

  10. super390 says:

    I wonder if the Audi view is that most of these automotive brands will be new brands built around EVs.

  11. Pushmi-Pullyu says:

    Well, I guess “up to” 40 auto makers making only BEVs is a pretty safe statements, since there is already at least one… 😉

    But if there are anywhere near 40 BEV-only auto makers in 10 years, then the next 10 years of the EV revolution will move much, much faster than the last 10!

    Up the rEVolution!

    1. Aaron says:

      At least two now: Tesla and Smart.

  12. JIMJFOX says:

    My money is on flow-cell research; so many variables to try must, eventually produce the revolution the world needs. Whether it is applicable to vehicles is currently a matter for discussion but I don’t think incremental improvements if current battery tech is the long-term answer.Weight alone is counter-productive.

    https://www.sciencedaily.com/releases/2017/02/170209163838.htm

    Before anyone pooh-poohs ‘sciencedaily’ as a credible source, Harvard is on ‘science daily’…

    1. JIMJFOX says:

      Harvard is NOT ‘science daily’…

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