Task2 - Environment >> Significant BEV Investment

"Significant BEV Investment"

Comparisons between Battery Energy Vehicles, or BEVs, and Internal Combustion Engines, known as ICE's, are being made with a view to planning future production by motor vehicle manufacturers. Many of the major motor vehilcle manufacturers are devoting significant financial resources to the development of BEV technology because they believe that BEVs are superior. In fact, the days of ICE dominance are numbered. The question is now not a matter of if, but when will the ICE be completely phased out.

In 2017 Reuters analysts put a figure on the investment at over $90 billion US dollars."We're all in," Ford Motor Executive Chairman Bill Ford Jr said of the company's $11 billion investment. "Tesla faces real competition," said Mike Jackson, chief executive of AutoNation Inc, the largest US auto retailing chain. By 2030, Jackson said he expects electric vehicles could account for 15-20 percent of new vehicle sales in the United States.Investments in battery energy vehicles announced to date include at least $19 billion by automakers in the United States, $21 billion in China and $52 billion in Germany.

Auto executives believe the investment strategy is solid. They point to government policies in China which will begin implementing quotas that encourage BEV uptake. Mainstream automakers are also responding to environmental policies on air quality in many parts of the world. For instance, California has enacted air quality laws which restrict harmful exhaust emmisions. Moreover, TESLA has clearly demonstrated a successful business model, and other established vehicle manufacturers want to be part of the joy ride. They can do this through substantial investment today in BEV technology

Executives from the big auto companies are investing with a view to an BEV future sooner rather than later.In the not too distant future, these automobile manufacturers are predicting that the investments will yield dividends.

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