The German Electric Car – a Problem with the Brand, not the Technology

Last week in the Pressclub München, the CEO of E.ON Energie AG, Prof. Dr. Klaus-Dieter Maubach, gave an account of an e-MINI pilot project in Munich. In the process it became evident that, technically, the energy supplier could solve all problems as every household in Germany has a 3-phase current, which can recharge a car such as the e-MINI in three hours, depending on the fuse protection. The only problems Professor Maubach sees are with the battery – and he believes that even these will be solved in the years to come.

Apparently, there are no energy supply problems. Professor Maubach explained that if all vehicles on the road in Germany today were no longer run on petrol or diesel, but on electricity, the amount needed would be equivalent to 15% of the electricity generated today. No problem for electricity producers, who are soon going to be offering this as so-called green electricity. The target quota will be about 25% of the total production within a few years.

But on the fringes of the event, over a bowl of a delicious goulash soup, Professor Maubach revealed the real problem with the electric cars. From the perspective of German car manufacturers, that is. They will only start offering the e-car in larger quantities when they can be certain they have established the same standard of reliability and safety that is already in place with petrol and diesel vehicles. “A CEO from the automotive sector said to me: ‘Imagine what would happen if our electric cars break down by the dozens, or if batteries would go up in smoke. Then I would destroy billions of dollars of our brand value’,” Professor Maubach said.

Manufacturers such as Tesla (we reported here how its e-car sales are going), Indian brand Tata and China’s Build Your Dreams (BYD) don’t have these problems. This is because they haven’t established brand values yet so it cannot be damaged. Furthermore, there are completely different safety requirements in Asia than in Europe,” said Professor Maubach.

A glance at its website reveals BYD is ready to launch seven hybrids and pure e-models. Judging by their looks, you would think they would work here, too. But if we follow Professor Maubach’s reasoning, the Chinese aren’t thinking of selling these cars in Europe before conducting thorough market tests in Asia – if a battery pack flares off there, then there won’t be any PR fiascos. Once the technology has been fully developed, the Indians and Asians can integrate it into the brand cladding that is being handed over to them by American and European car manufacturers more or less at a service charge (see Landrover, Jaguar or Volvo). Also stirring the imagination are reports that auto-parts supplier Magna in Graz is building a centre for e-technology. It makes one wonder what the Steirer had planned for Opel?

So the problem with the quick penetration of electric cars into the German market is a brand problem not a technical one. Reports that BMW is thinking of introducing a new brand make absolute sense in terms of electricity.