Volkswagen Australia's EV charge under a cloud

Volkswagen Australia has conceded that its plans to introduce a family of EV models headed by the new Volkswagen ID.4 will hinge on whether there is ample stock outside of Europe.

The German brand’s Australian operation has been vocal about its intention to introduce the all-new electric SUV here from around 2022, however, managing director Michael Bartsch says that plan is still yet to be confirmed.

“We’re doing all our thinking and planning on 2022/2023, but it’s not formally locked in simply because the ramp-up in Europe is not clearly defined, and the demand will be substantially addressed in Europe before we get it,” Bartsch told carsales.

Bartsch explained the potential supply issue was partly symptomatic of Australia’s lax CO2 emissions regulations, which remain about 10 years behind Europe’s.

“We are going to compete – at least in the early years – for supply with what’s going on in the Northern Hemisphere,” he said.

“The cost of not moving to EV in the Northern Hemisphere and getting the balance right, in other words meeting the CO2 and NOX targets, is going to be extremely high.

“So the entire effort is going to be focussed on the Northern Hemisphere to avoid the fines and things that will come from breaching NOX and CO2 thresholds. If there’s no legal government imperative driving the agenda in Australia, why prioritise us?”

The Volkswagen ID.4 was revealed online in March and is set to launch in Europe later this year, where it will become the second dedicated production Volkswagen EV after the ID.3 hatch, offering up to 500km of range from its biggest lithium-ion battery pack.

The ID.4 – the second car from the Volkswagen Group’s Modular Electric Matrix (MEB) architecture – will be available with a choice of 45kWh, 58kW/h and 77kW/h battery packs.

Volkswagen Group Australia has already begun readying plans for its forthcoming EV assault, recently revealing details of a new purpose-built EV training centre built in conjunction with Porsche and located 18km from Melbourne’s CBD.

Last week, carsales revealed Australia’s automotive industry is pushing for a voluntary CO2 code that would emulate tougher emissions restrictions enforced in Europe.

Bartsch has welcomed the code, but believes EVs and the latest generation of internal combustion technology will cohabitate for some time.

“There are a lot of objections floating around asking what the world will look like in 2040. There is no expectation that internal combustion engines are going to disappear. In fact the figure is that by 2040 maybe 40 per cent or 50 per cent of cars will be electric,” he said.

“Who knows? Unless something really dramatic happens where it’s legislated out of existence – we just wake up day and someone says ‘there’s an act of parliament, we don’t want internal combustion engine cars’. That’s unlikely because the infrastructure and the ramp-up curve couldn’t be addressed.

“That said, the sooner we accept and embrace the technological possibilities that are available, the better off everyone is going to be.”

Ultimately, the ongoing coronavirus pandemic may mean the ID.4’s European launch date is pushed back, Bartsch warned.

Similarly, he said the Australian launch of the new Volkswagen Golf 8 hatch had already been delayed to the first quarter of 2021 because of COVI9-19, even before details of an unexpected software glitch was discovered last week.

Volkswagen shut down its major European factories, including its Wolfsburg epicentre, in March. It began the reopening process on April 27.

“This whole European factory shutdown has pushed all agendas out,” Bartsch warned. “It’s mostly a consequence of the factory shutdown and, as you can imagine, the ramp-up curve on the supply line.

“The problem is you’ll have elements shut down in the Middle East, Czech Republic and China – it’s not just reopening the factories but also coordinating the supply lines again.”