I’ve always maintained that despite green noises about electric cars, Volkswagen, deep in their Wolfsburg hearts, doesn’t believe in them. Because they don’t make sense. If they are too expensive, people won’t buy them. Volkswagen has ample experience in this arena, probably more than anybody else. Ages ago, VW built a fuel-sipping 3 liter Lupo (3 liter / 100 km, 78 mpg.) The press lapped it up. The greenies creamed in their pants. Focus groups swore they’ll buy it, no matter the cost. They lied. In the showroom, the 3 Liter Lupo was a dud: Advanced materials had made it light, but also expensive. Customer reaction: “Interesting. Now how about that red GTI over there?”

Now finally, someone high up at Volkswagen has the guts to say it: Volkswagen doesn’t build electric cars because the customer wants them. Volkswagen makes EVs because the government demands them. (Read More…)