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Volkswagen has faced significant backlash since the Dieselgate scandal broke in September 2015. Alongside an extensive $4.3 billion in fines and penalties paid to the Environmental Protection Agency, California Air Resources Board, and its customers, Volkswagen committed to reinvesting a substantial portion of its funds into the electric vehicle sector. However, this initiative is now raising concerns among other auto manufacturers, who perceive it as a potential threat rather than a benefit.
In an effort to regain its foothold in the U.S. automotive market, Volkswagen has pledged a hefty investment toward expanding electric infrastructure throughout the country. Dubbed Electrify America, this initiative aims to enhance electric vehicle charging facilities by establishing over 450 stations nationwide, including at least 110 in California.
Volkswagen has committed to utilizing non-proprietary standards for its charging network, making it accessible to other vehicle manufacturers. This appears to be a straightforward case for approval; however, the California Air Resources Board (CARB) is still scrutinizing VW’s proposal amidst complaints from competing manufacturers about the potential for Volkswagen to dominate the alternative fuel market.
While many are excited about electric vehicles, companies like Honda, Hyundai, and Toyota are investing heavily in hydrogen-powered vehicles, claiming that Volkswagen’s funding should also extend toward creating hydrogen fueling stations. However, other manufacturers, including BMW, Nissan, and Tesla, are focusing on strengthening the electric infrastructure with charging stations across the continental U.S.
Ford has also expressed its concerns, stating that they are apprehensive about having a crucial driver of electrification being reliant on and potentially controlled by a single automotive competitor. They suggested that Volkswagen concentrate its efforts on areas lacking sufficient electric infrastructure. BMW has voiced similar worries, fearing that Volkswagen could monopolize pricing for charging services.
While it may be frustrating that other manufacturers are trying to influence the development of a more accessible charging infrastructure in the U.S., it raises valid concerns. Is Ford and BMW’s worry about potential monopolization of electricity pricing justified? As CARB carefully reviews the 120 comments submitted before making a decision on Volkswagen’s plan, it is crucial to consider all aspects of this project.
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