Focus Electric Preparing for Strategy 2025 - Foster School of Business
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Focus Electric
Preparing for Strategy 2025
Jack Mitch Hamish Andrew
Nolan Goodall McHardy Trubshaw
AGENDA
CHALLENGES Consumers no longer
Diesel is losing VW are not focusing
market-share on the right
trust VW
worldwide geographies
STRATEGY
Focus Electric for 2025
TACTICS Gradually withdraw from diesel Stay in the US, and target select
and focus on electric vehicles areas of Asia and Europe
Position to take
Become a global
Survive the $30B advantage of growth
OUTCOMES market leader in
emissions scandal in emerging markets
electric vehicles
by 2025
COST OF EMISSIONS SCANDAL
Quantifying the Crisis
Simulations showed that there is a 79% probability that the crisis costs between
$23B and $28B USD over the next 10 years
Monte Carlo Crisis Cost NPV Analysis (10 year timeline) Breakdown of Costs
200 Recall
7% chance of 79% chance of 14% chance of Costs
180 $10B - $23B $23B - $28B $28B - $33B Class [PERCE
loss Action NTAGE]
160 Legal
Costs
Simulation Frequency
140 [PERCE
NTAGE]
120
Goodwil
100 l Costs
80 [PERCE
NTAGE]
60
EPA
40 Legal
Costs
20 [PERCE Lost
NTAGE] Sales
0
20 21 23 24 26 28 29 31 32 [PERCE
NTAGE]
NPV Cost of crisis (in US Billions)
Single figure estimates are inadequate
Variables are still unknown so a range
Forbes VW internal Credit Suisse is required for reliable and accurate
forecasting
$25.7B 6.75B $87.3B
QUANTIFYING GEOGRAPHIC
DIESEL ELECTRIC
CRISIS TARGETTING
Non-quantifiable costs
Customers have lost trust in Volkswagen, and are moving away from diesel
vehicles
General Customer Perceptions Key Takeaways
Volkswagen Group is no longer a Volkswagen will not be able to fully regain trust
1 trustworthy, especially with regards to in the short term
diesel vehicles
Volkswagen is failing its commitment
2 to the environment VW Diesel vehicles in particular have an
incredibly bad reputation
Diesel engines are less powerful, with
3 substandard fuel economies and more VW must look beyond their traditional petrol
emissions and diesel offerings to build new trust with new
products
QUANTIFYING GEOGRAPHIC
DIESEL ELECTRIC
CRISIS TARGETTING
DIESEL ANALYSIS
Diesel Performance 2015/16
The scandal has diminished diesel sales globally for VW but early 2016 sales
figures are positive
VW USA Brand Sales 2015 - 2016 Global VW Sales 2015 - 2016
35000 650,000
-80%
(Diesel) -24.6%
30000 600,000
25000 550,000 +2%
20000 500,000
15000 450,000
10000 400,000
5000 350,000
0 300,000
Non-Diesel Sales Diesel Sales
QUANTIFYING GEOGRAPHIC
DIESEL ELECTRIC
CRISIS TARGETTING
Poor Diesel Performance
VW vehicles with a defeat device no longer perform which has lowered
confidence and trust in VW diesel vehicles overall
Jetta Sportswagen 2011
Acceleration to 60 mph Miles per gallon
9.9 seconds 50 mpg
+6% - 8%
10.5 seconds 46 mpg
Jetta TDI 2015
Acceleration to 60 mph Miles per gallon
9.1 seconds 53 mpg
+1% - 5.7%
9.2 seconds 50 mpg
QUANTIFYING GEOGRAPHIC
DIESEL ELECTRIC
CRISIS TARGETTING
Poor Diesel Performance
Diesel is predicted to shrink while EVs are predicted to take a huge piece of
the market
Global car sales by fuel type
2.34% 13% 35%
100% VW must be positioned to
90% succeed in a changing market
80%
Vehicle Market Share
70%
60%
Petrol
50%
Diesel
40%
Electric
30%
20%
Diesel vehicles will become less
common while EV market share
10%
grows
0%
2015 2025 2040
VW should establish a strong position to move into the next phase of growth
QUANTIFYING GEOGRAPHIC
DIESEL ELECTRIC
CRISIS TARGETTING
ELECTRIC VEHICLE FOCUS
Where does the Volkswagen Group sit in this mix?
Electric Vehicle Focus
Through to 2025 EV sales will experience a CAGR of 19% and represent
almost a 10th of global vehicle sales
Global EV Sales
41M
20,000,000
18,000,000
16,000,000
14,000,000
12,000,000
+19%
CAGR
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
-
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 ….... 2040
Global sustainable Increasing vehicle 65% decrease in EV
transport policy availability battery prices from 2010
Source: Navigant Research; Research and Markets
QUANTIFYING GEOGRAPHIC
DIESEL ELECTRIC
CRISIS TARGETTINGElectric Vehicle Focus
Global sales of EVs will be spurred by huge demand for battery technology
that will significantly decrease in price by 2025
Cost for lithium-ion battery packs (kWh) Yearly demand for EV battery power (gigawatt hours)
$1,200 800
700
$1,000
600
$800
500
Actual
$600 400
300
$400
Estimated Range 200
$200
100
Actual
$0 0
2010 2015 2020 2025 2030 2010 2015 2020 2025 2030
Technical advances could increase the Market is primed for companies to
capacity of batteries by 80 to 110% by compete on a total cost of ownership
2025 basis due to falling gasoline prices
Source: Bloomberg New Energy Finance
QUANTIFYING GEOGRAPHIC
DIESEL ELECTRIC
CRISIS TARGETTINGElectrification
VW has a strong foundation to succeed in the EV market with considerable
innovation infrastructure but is struggling with sales
VW Electronic Research Laboratory
Key EV models ranked 13th and 14th
globally at a combined average of just
1 Located in Silicon Valley the laboratory 2.5% of global sales
only employs 80 people
2 Currently a lack of focus on EV innovation VW e-Golf 612
and a wide spread of project types Hyundai Sonata PHV
BMW i3
3 Current offering in BEV limited to e-Golf BMW X5 xDrive40e
and Audi R8 e-tron Fiat 500e
Audi A3 Sprtbk e-tron 907
Ford C-Max Energi
Telsa Model X
Ford Fusion Energi
Nissan Leaf
Chevorlet Bolt
Telsa Model S
0 1000 2000 3000 4000 5000
QUANTIFYING GEOGRAPHIC
DIESEL ELECTRIC
CRISIS TARGETTINGElectric Vehicle Focus
VW should focus on increasing ERL funding and fast-track mass market
battery and EV offerings over the next 5 years
1 2 3
Fully Electric Vehicles Charging Infrastructure EV Batteries
Focus on bringing
Develop charging Fast-track your current
forwarded more mass
station infrastructure for innovations in lithium-
market EV models
your vehicles ion batteries
before 2025
QUANTIFYING GEOGRAPHIC
DIESEL ELECTRIC
CRISIS TARGETTINGGEOGRAPHIC TARGETING
Country Targeting
Focus on countries with high automotive demand forecast, low sensitivity to
the scandal, and the potential for a large EV market
Size = Scaled to country’s annual automotive
purchases (China not to scale - 40% size)
Brazil
High Russia
Canada
India
Sensitivity to Volkswagen Scandal
Mexico
Japan
USA
UK France
Germany
Sweden
China
Norway
Netherlands
South Korea
Low Potential for EVs High
QUANTIFYING GEOGRAPHIC
DIESEL ELECTRIC
CRISIS TARGETTINGCountry Targeting
Focus on countries with high automotive demand forecast, low sensitivity to
the scandal, and the potential for a large EV market
Size = Scaled to country’s annual automotive
purchases (China not to scale - 40% size)
Brazil
High Russia
Canada
India
Sensitivity to Volkswagen Scandal
Mexico
Japan
USA
UK France
Germany
Sweden
China
Norway
Netherlands
South Korea
Low Potential for EVs High
QUANTIFYING GEOGRAPHIC
DIESEL ELECTRIC
CRISIS TARGETTINGUS Strategy
Slowly stop selling diesel cars in the US while focusing on hybrids and EVs – do
not exit the market completely
US Monthly Diesel sales 2015/16 Top purchasing countries of EVs in 2015
6000
280,000
258,000
5000
130,000
4000
88,000
3000
US China Japan Netherlands
2000
In addition to being a profitable petrol
1000
market, the US is currently the largest EV
market in the world
0
July Non-Diesel Sales Feb
2015 2016
Diesel Sales Leaving the market would be a poor
Diesel vehicle sales are down by over decision and make it difficult to enter in
80% while petrol remains strong the future with an EV focused fleet
QUANTIFYING GEOGRAPHIC
DIESEL ELECTRIC
CRISIS TARGETTINGCountry Targeting
Focus on countries with high automotive demand forecast, low sensitivity to
the scandal, and the potential for a large EV market
Size = Scaled to country’s annual automotive
purchases (China not to scale - 40% size)
Brazil
High Russia
Canada
India
Sensitivity to Volkswagen Scandal
Mexico
Japan
USA
UK France
Germany
Sweden
China
Norway
Netherlands
South Korea
Low Potential for EVs High
QUANTIFYING GEOGRAPHIC
DIESEL ELECTRIC
CRISIS TARGETTINGCountry Targeting
Focus on countries with high automotive demand forecast, low sensitivity to
the scandal, and the potential for a large EV market
Size = Scaled to country’s annual automotive
purchases (China not to scale - 40% size)
Brazil
High Russia
Canada
India
Sensitivity to Volkswagen Scandal
Mexico
Japan
Key European Markets
USA
UK France
Germany
Sweden
China
Norway
Netherlands
South Korea
Low Potential for EVs High
QUANTIFYING GEOGRAPHIC
DIESEL ELECTRIC
CRISIS TARGETTINGAsia: Japan, China, South Korea
Japan, China, and South Korea are the most attractive markets in Asia for
Volkswagen
NORWAY GERMANY NETHERLANDS
Market leader in car sales VW remains best selling car High penetration of charging
with MS of 13.84%. EV sales brand in Germany 2015 with stations at 1.3 per EV and
KEY INSIGHT second largest uptake of EV
accounted for 22.9% in 2015 3,210,000 automotive sales
vehicles
EVs exempt from fees and Accounting for 20 percent of 2020 EV targets are 200,000
DRIVERS related taxes until 2017 all new car registrations (3.2 and 1M in 2025
million)
Government stated goal of Expected VW growth Government has committed
All new cars rates of to a having
50% ZERO
LOOKING
AHEAD in 2025 being
emissions free
for EVs petrol and diesel cars from
The majority of these cars in coming years sale in the Netherlands
will be EVs from 2025
QUANTIFYING GEOGRAPHIC
DIESEL ELECTRIC
CRISIS TARGETTINGCountry Targeting
Focus on countries with high automotive demand forecast, low sensitivity to
the scandal, and the potential for a large EV market
Size = Scaled to country’s annual automotive
purchases (China not to scale - 40% size)
Brazil
High Russia
Canada
India
Sensitivity to Volkswagen Scandal
Mexico
Japan
Key European Markets
USA
UK France
Germany
Sweden
China
Norway
Netherlands
South Korea
Low Potential for EVs High
QUANTIFYING GEOGRAPHIC
DIESEL ELECTRIC
CRISIS TARGETTINGCountry Targeting
Focus on countries with high automotive demand forecast, low sensitivity to
the scandal, and the potential for a large EV market
Size = Scaled to country’s annual automotive
purchases (China not to scale - 40% size)
Brazil
High Russia
Canada
India
Sensitivity to Volkswagen Scandal
Mexico
Japan
Key Asian Markets
USA
UK France
Germany
Sweden
China
Norway
Netherlands
South Korea
Low Potential for EVs High
QUANTIFYING GEOGRAPHIC
DIESEL ELECTRIC
CRISIS TARGETTINGAsia: Japan, China, South Korea
Japan, China, and South Korea are the most attractive markets in Asia for
Volkswagen
SOUTH
JAPAN CHINA
KOREA
Diesel VW #1 selling car in Scandal had large impact but Dropped only 8.5% percent
KEY INSIGHT 2015. Low Scandal Impact. sales are still high by end of 2015 and have
already gained 15% in 2016.
2011 Germany / South Korea VW has been the #1 selling China are 39% of all global
DRIVERS FTA and long time success foreign car company for over sales, consumers reacted
of VW brand 15 years. quickly.
Government stated goal of Government has committed
375%
$15B
Highest EV
LOOKING penetration in
AHEAD CAGR the world
in EV sales until 2020. (Excl. Scandinavia) In subsidies and funding.
Aiming for 20% of all cars to Also committed to 20% EVs
be fully electric and by 2020. Government Fastest growing market for
subsidizing heavily. subsidizing. automotive and for EV.
QUANTIFYING GEOGRAPHIC
DIESEL ELECTRIC
CRISIS TARGETTINGAGENDA
CHALLENGES Consumers no longer
Diesel is losing VW are not focusing
market-share on the right
trust VW
worldwide geographies
STRATEGY
Focus Electric for 2025
Gradually withdraw from Stay in the US, and target
TACTICS diesel and focus on electric select areas of Asia and
vehicles Europe
Position to take
Become a global
Survive the $30B advantage of
OUTCOMES market leader in
emissions scandal growth in emerging
electric vehicles
markets by 2025INDEX
Presentation Slides General Index Slides
20. Do EVs pose a risk to limited electricity supply?
1. Quantifying Cost of Scandal
21. Low Oil Prices and EVs
2. Diesel Analysis
22. 5 Forces: Global Automotive Market
3. Electric Vehicle Market
23. 5 Forces: Global EV Market
4. Geographic Targetting
24. SWOT Analysis: Global EV Market
5. USA
25. Hydrocarbon vs EVs
6. European Target Markets
26. Why not Autonomous Driving Focus?
7. Asian Target Markets
27. Public Relations and Damage Control
28. Scaling Back Diesel
29. Cost Management
30. EVs and building new trust
31. Key Elements of Building Trust
32. Regaining trust case study: Johnson & Johnson v Arthur Anderson
Financial Index Potential Target Countries Macro / PESTLE analysis
10. Monte Carlo Analysis - Assumptions 40. USA 50. Canada
11. Simulation Results Histogram 41. China 51. UK
12. VW Costs / Cash Flows 42. Japan 52. Mexico
13. Recall Costs Cash Flows 43. South Korea 53. France
14. Goodwill Costs Cash Flows 44. Norway 54. Sweden
15. Losses from Sales 45. Germany 55. Brazil
16. EPA Legal Costs / Fines 46. Netherlands 56. Russia
17. Class Action Costs 57. India
18. Costs BreakdownFocus Electric
Preparing for Strategy 2025
Jack Mitch Hamish Andrew
Nolan Goodall McHardy TrubshawMonte Carlo Analysis Assumptions
--INDEX--Monte Carlo Profitability Analysis Histogram
--INDEX--Volkswagen Quantitative Cost Cash Flows
--INDEX--Volkswagen Recall Costs Cash Flows
--INDEX--Volkswagen Goodwill Costs Cash Flows
--INDEX--Lost Volkswagen Sales Costs Cash Flows
--INDEX--EPA Legal Costs Cash Flows
--INDEX--Class Action Legal Costs Cash Flows
--INDEX--Breakdown of Costs
--INDEX--Index
A growing number of EVs will cause a higher demand for electricity but this
will only lead to a moderate rise in total demand
The Challenge The Actual Result
Driving an EV 15,000 km per
year and charging it solely at
home would roughly double the
household’s electricity demand,
taking it from about 3,500 kWh to Even if EVs comprised 20% of all
about 6,500 kWh per year. cars on the road in Europe by
2020, associated incremental
electricity demand would be 3-
4% of base case without large-
Moment of charging impacts the scale EV adoption
grid along with demand following
the load curve (peaks and levels)
+ clusters can impact power
infrastructure
--INDEX--Index
Even if crude oil prices fell drastically over the forecast period mass adoption
of EVs would only be delayed until the early 2030s
What about a crash in oil prices?
Key analysts are basing EV demand on
Even if oil prices fell to $20 a barrel and
crude oil price recovering to $50 and
remained there through until 2025 – this
then trending back up to $70-a-barrel or
would only delay adoption of EV on a
higher by 2040
mass scale until early 2030
This is in line with the price trajectory mentioned by the US Energy Information
Administration in its Annual Energy Outlook 2015
Source: Bloomberg New Energy Finance
--INDEX--Index
5 Forces Analysis of global automotive industry
Threat of New Entry Buyer Power
Threat of New Entry
Buyers are extremely
Barriers to entry in this
price sensitive and have
industry
high ability to substitute.
are medium and
There is moderately low
are steady
buyer power
Competitive
Rivalry
Supplier Power Buyer Power
Industry is highly
fragmented and
Supplier Power concentration is low Threat of Substitution
Fragmented suppliers of Low cost of substitution
raw materials with low in most markets to
cost of substitution and another vehicle or a car /
no real supplier power bus / Uber
Threat of Substitution
--INDEX--Index
Porter’s 5 Forces in the Global EV Market
Threat of New Entry Buyer Power
Threat of New Entry
Barriers to entry in this Buyers have more
industry are slightly power in this market due
lower and to a low product
are increasing offering
Competitive
Rivalry
Supplier Power Buyer Power
Industry is highly
fragmented and
Supplier Power concentration is low Threat of Substitution
Concentrated suppliers
Low cost of substitution
of raw materials with
in most markets to
high cost of substitution
another vehicle or a car /
and some supplier
bus / Uber
power Threat of Substitution
--INDEX--Index
SWOT Analysis of entering the EV segment
Strengths Weaknesses
• Maximize ERL capacity → re-invest diesel • Requires significant funding
funds • Decreased brand equity could hamper
• Established presence in the market with adoption rates
two key models • Late entrant to the market
• Concept vehicles have sent signals to • Lack of focus on geography
market of preparedness • Inability to calculate level of focus for EV
• Leading automotive group with as a result of crisis costs
established brands and experience
Opportunities Threats
• Strong global growth in EV sales over the • Increase in demand could increase
forecast period supply and create a highly fragmented
• 35% global sales by 2040 market
• 41M EVs by 2040 • Current infrastructure (charging stations)
• Reduction in battery prices will reduce may not support demand over forecast
costs and increase competitive ability period
• Increases in battery capacity technology • Stronger competitor position → isolated
from crisis
--INDEX--Index
Currently, hydrocarbon is not a viable alternative venture to electric
Industry case study
1 Hydrocarbon cars consumer 3x more fuel than electric
Undeveloped technology
2 Hydrocarbon cars cost 46% more to run
Lack of infrastructure
The transformation to energy for hydrocarbon engines
3 is 55-60% less efficient
Limited consumer interest
--INDEX--Index
Autonomous driving technology is an attractive investment, however it does
not align with VW’s current position and outlook
Attractiveness of autonomous driving technology Investing in autonomous technology will
not address VW’s issue of declining sales
1 Potentially a 42B USD market by 2025
VW’s trust issue is a barrier to
implementation and success
Technology is projected to be ready for
2
sale by 2022
Forecasted to make up 10% of light vehicle
3
sales by 2035
VW is not currently in the market –
requires significant investment
Toyota announced a 1B USD investment
over a 5 year period
--INDEX--Index
The window for a public relations campaign has lapsed
Speed at which news of a crisis spread internationally
VW publically admitted to use of the deceptive software in September 2015
--INDEX--Index
The window for a public relations campaign has lapsed
VW has taken mitigating steps
The CEO during scandal has been removed and an
1 independent inquiry into the controlling board is
Grow trust in emerging markets
underway
2 Publically admitting the use of the deceptive software
Scale back in most affected
markets
3 Announced scheme for rebate
--INDEX--Index
Markets to target for scaling back diesel focus, due to impact of scandal on
monthly sales
Russia: -
26%
USA: - 25%
Brazil: - 44%
--INDEX--Index
Cost Management
Cost Breakdown Cash on Hand Strategy Investment
Predicted NPV of Currently set aside Up to 500 million
1 1 1 worth of investment
costs: $7.3B for costs, with
25.6 Bil dollars $25B cash on hand for charging station
infrastructure, EV
2 Cash Costs 2016: 2 $7.3B allocation will batteries and
$500, 000 for recall be sufficient to cover expanded EV range
2016 costs
Legal Costs begin 25B cash on hand
3 3
in 2018 at $2B is ample to cover VW will have ample
2
2018 costs cash to cover costs
of the scandal and
Legal Costs will Further loans of
4 4 further EV
continue until 2025 21B plus remaining investments
for a total NPV of cash of hand will be
$6B ample for ongoing
costs
--INDEX--Index
Where customer trust cannot be regained through the creation of new trust
in new products, VW has two alternatives available
What if the creation of new trust in EV product development doesn’t assist in
regaining customer trust?
1 2 3
Credible Commitments Greater CEO
Reputation Capital
to Prevention Involvement
Johnson & Johnson
Announcements of credibly followed CEO’s can accelerate
reputation-repair through on their rebuilding customer
actions lift share prices, commitments by trust by targeting softer
on average by 2% creating new product constituencies
type
Sources: Stanford Graduate School of Business; McKinsey; PwC
--INDEX--Index
Regaining customer trust involves a primary focus on addressing the issue
straightforwardly and a secondary focus on rebuilding reputation capital
Effective restoration of trust
Communicate
Be open and
more clearly,
honest about the Trust harmed by untrustworthy
effectively and 1
issue behaviour can be restored
straightforwardly
when individuals observe a
consistent series of
94% 93%
trustworthy actions.
Commitment to change
2
behaviour help accelerate the
Visibly trust recovery process
demonstrate
Be involved with
concern and
the community Implement tangible efforts to
consideration for 3
address to issue and ensure it
employees
does not happen again e.g.
Johnson and Johnson
50% 50% Source: Wharton School of Business
Source: Rawlins (2007)
--INDEX--Index
Key business case studies reveal that regaining customer trust for long term
success is based on a commitment to change behavior create new trust
Trust Creation
No Willingness to
Change Behavior
Source: PwC (2015)
--INDEX--USA Macro-Environmental Factors
Corruption: Political Stability: EV Scheme:
Political Ranked 16th Upper 30% Billions of USD allocated for
CPI: 76 Rating: 0.62 development of EVs
GDP: GDP Growth:
Economic Ranked 1st Ranked 114th
$17,419,000 million USD Real GDP growth rate of 2.6%
Human Development Index (HDI):
Social Ranked 8th globally
HDI Rating: 0.915
Infrastructure:
Technological Gross Fixed Capital Formation Annual Growth: 2.4%
Emission Standards:
Legal Enforced by Environmental Protection Agency with large penalties for breach of
relatively strong emission standards
VW Sales:
Automobile Sales: EV Sales:
Sales 2014: 367,789
7,570,000 280, 000
2015: 349,400
--INDEX--China Macro-Environmental Factors
Corruption: Political Stability: EV Scheme:
Political Ranked 37th Lower 30% Subsidies of up to $10, 000
CPI: 56 Rating:-.0.46 USD for all electric vehicles
GDP: GDP Growth:
Economic Ranked 2nd Ranked 19th
$10,354,832 million USD Real GDP growth rate of 6.9%
Human Development Index (HDI):
Social Ranked 90th globally
HDI Rating: 0.727
Infrastructure:
Technological Gross Fixed Capital Formation Annual Growth: 7.2%
Emission Standards:
Legal Relatively weak China emission standards implemented, with plans to
implement 2011 EU Emission standards in 2018
VW Sales: Automobile Sales
EV Sales 2015:
Sales 2014: 3,674,948 2015:
258,328
2015: 3,550,000 21,150,000
--INDEX--Japan Macro-Environmental Factors
Corruption: Political Stability: EV Scheme:
Political Ranked 18th Upper 20% Rebates for up to $29, 500
CPI: 75 Rating:1.02 USD per electric vehicle
GDP: GDP Growth:
Economic Ranked 3rd Ranked 191st
$4,601,461 million USD Real GDP growth rate of 0.6%
Human Development Index (HDI):
Social Ranked 20th globally
HDI Rating: 0.891
Infrastructure:
Technological Gross Fixed Capital Formation Annual Growth: 3.2%
Emission Standards:
Legal Japan's emission control requirements for vehicles are the strictest in Asia and
among the strictest in the world
VW Sales: Automobile Sales
EV Sales 2015:
Sales 2014: 67,446 2015:
130,000
2015: 54,766 4,240,000
--INDEX--South Korea Macro-Environmental Factors
Corruption: Political Stability: EV Scheme:
Political Ranked 83rd Upper 50% Subsidies of up to $15, 000
CPI: 37 Rating: 0.19 USD for electric vehicles
GDP: GDP Growth:
Economic Ranked 13th Ranked 112
$1,410,383 million USD Real GDP growth rate of 2.7%
Human Development Index (HDI):
Social Ranked 17th globally
HDI Rating: 0.898
Infrastructure:
Technological Gross Fixed Capital Formation Annual Growth: 3.1%
Emission Standards:
Legal Relatively strong emission standards, following European precedent
VW Sales: Automobile Sales
EV Sales 2015:
Sales 2014: 28,853 2015:
1,181
2015: 35,778 1,408,182
--INDEX--Norway Macro-Environmental Factors
Corruption: Political Stability: EV Scheme:
Political Ranked 5th Upper 10% Goal to reach 50 000 zero
CPI: 87 Rating:1.13 emission vehicles by 2018
GDP: GDP Growth:
Economic Ranked 26th Ranked 183rd
$499, 817 million USD Real GDP growth rate of 0.9%
Human Development Index (HDI):
Social Ranked 1st globally
HDI Rating: 0.944
Infrastructure:
Technological Gross Fixed Capital Formation Annual Growth: 6.6%
Emission Standards:
Legal Predominantly enforces emission standards with incentives as opposed to
penalties
VW Sales: Automobile Sales
EV Sales 2015:
Sales 2014: 21,593 2015:
84,401
2015: 26,344 181,416
--INDEX--Germany Macro-Environmental Factors
Corruption: Political Stability: EV Scheme:
Political Ranked 10th Upper 20% Government initiatives for 1
CPI: 81 Rating: 0.93 million EV’s by 2020
GDP: GDP Growth:
Economic Ranked 4th Ranked 161st
$ 3,868,291 million USD Real GDP growth rate of 1.5%
Human Development Index (HDI):
Social Ranked 6th globally
HDI Rating: 0.916
Infrastructure:
Technological Gross Fixed Capital Formation Annual Growth: 3.5%
Emission Standards:
Legal Subject to EU air pollution regulations, but expecting to be unable to comply
next year in 2016
VW Sales: Automobile Sales
EV Sales 2015:
Sales 2014: 685,669 2015:
48,669
2015: 656,494 3,210,000
--INDEX--Netherlands Macro-Environmental Factors
Corruption: Political Stability:
EV Scheme:
Political Ranked 5th Upper 15%
1 million EV target for 2025
CPI: 87 Rating: 1.05
GDP: GDP Growth:
Economic Ranked 17th Ranked 153rd
$879,319 million USD Real GDP growth rate of 1.8%
Human Development Index (HDI):
Social Ranked 5th globally
HDI Rating: 0.922
Infrastructure:
Technological Gross Fixed Capital Formation Annual Growth: 3.5%
Emission Standards:
Legal Complies with EU standards for emissions with further guidelines for additional
emission reductions.
VW Sales: Automobile Sales
EV Sales 2015:
Sales 2014: 42,693 2015:
88,991
2015: 56,355 340,896
--INDEX--Canada Macro-Environmental Factors
Corruption: Political Stability: EV Scheme:
Political Ranked 9th Upper 10% Rebates of $5000-$10000 for
CPI: 83 Rating: 1.18 10, 000 EV purchasers
GDP: GDP Growth:
Economic Ranked 11th Ranked 178th
$1,785,387 million USD Real GDP growth rate of 1%
Human Development Index (HDI):
Social Ranked 9th globally
HDI Rating: 0.913
Infrastructure:
Technological Gross Fixed Capital Formation Annual Growth: 4.8%
Emission Standards:
Legal Follows USA emission standards which are relatively strong with large
penalties.
Strong Government Growing EV sales Growing market share
Potential Market support, growing 2014: 5000 of EV segment
infrastructure 2015: 6700 2015: 1%
--INDEX--United Kingdom Macro-Environmental Factors
Corruption: Political Stability: EV Scheme:
Political Ranked 10th Upper 40% 25% EV subsidies and 300
CPI: 81 Rating: 0.44 million USD grants
GDP: GDP Growth:
Economic Ranked 5th Ranked 122nd
$2,988,893 million USD Real GDP growth rate of 2.5%
Human Development Index (HDI):
Social Ranked 14th globally
HDI Rating: 0.907
Infrastructure:
Technological Gross Fixed Capital Formation Annual Growth: 7.5%
Emission Standards:
Legal Successfully complies with EU emission standards and regulations.
Strong Government Growing market share of Relatively sensitive
Potential Market support, growing EV segment to the scandal, VW
infrastructure 2014: 2.1% 2015: 2.8% sales dropped 14%.
--INDEX--Mexico Macro-Environmental Factors
Corruption: Political Stability: EV Scheme:
Political Ranked 95th Lower 20% Government offering small
CPI: 35 Rating: -0.76 incentives to purchasing EVs
GDP: GDP Growth:
Economic Ranked 15th Ranked 131st
$1,294,690 million USD Real GDP growth rate of 2.3%
Human Development Index (HDI):
Social Ranked 74th globally
HDI Rating: 0.756
Infrastructure:
Technological Gross Fixed Capital Formation Annual Growth: 2.9%
Emission Standards:
Legal Moderate emission standards for passenger vehicles, with world class
emission standards for heavy-duty vehicles
High corruption, low Low consumer interest. Amount of EVs on the road
Why not? infrastructure, low 2012: 200
Government support 2014: 676
--INDEX--France Macro-Environmental Factors
Corruption: Political Stability: EV Scheme:
Political Ranked 23rd Upper 15% Up to $10,000 USD rebates
CPI: 70 Rating: 1.02 offered for purchase of Evs.
GDP: GDP Growth:
Economic Ranked 6th Ranked 169th
$2,829,192 million USD Real GDP growth rate of 1.2%
Human Development Index (HDI):
Social Ranked 22nd globally
HDI Rating: 0.888
Infrastructure:
Technological Gross Fixed Capital Formation Annual Growth: -1.2%
Emission Standards:
Legal Successfully complies with EU emission standards, with pushes for increased
regulation and more stringent limit values for emissions
Strong
Government Strong CAGR of Relatively small EV sales
Potential Market support for shift to 50% for EV sales 2014: 14,731
electric
--INDEX--Sweden Macro-Environmental Factors
Corruption: Political Stability: EV Scheme:
Political Ranked 3rd Upper 15% 9 million USD allocated to
CPI: 89 Rating: 1.07 funding EV subsidies
GDP: GDP Growth:
Economic Ranked 21st Ranked 108th
$571,090 million USD Real GDP growth rate of 2.8%
Human Development Index (HDI):
Social Ranked 14th globally
HDI Rating: 0.907
Infrastructure:
Technological Gross Fixed Capital Formation Annual Growth: 7.6%
Emission Standards:
Legal Successfully complies with EU emission standards with national frameworks for
low emission zones and congestion road tolling
Growing Small car sales representing less than 1% of total car
Potential Market infrastructure sales worldwide
--INDEX--Brazil Macro-Environmental Factors
Corruption: Political Stability: EV Scheme:
Political Ranked 65th Lower 50% Moderate tax exemptions for
CPI: 38 Rating: -0.01 purchasers of EVs
GDP: GDP Growth:
Economic Ranked 7th Ranked 211st
$2,346,076 million USD Real GDP growth rate of -3.0%
Human Development Index (HDI):
Social Ranked 75th globally
HDI Rating: 0.755
Infrastructure:
Technological Gross Fixed Capital Formation Annual Growth: -1.2%
Emission Standards:
Legal Follows emission standards generally similar to the European precedent
High corruption, Highly sensitive to the scandal, VW sales dropped
Why not? low infrastructure 44%
--INDEX--Russia Macro-Environmental Factors
Corruption: Political Stability: EV Scheme:
Political Ranked 119th Lower 20% Gas stations ordered to
CPI: 29 Rating: -0.84 provide chargers for EVs
GDP: GDP Growth:
Economic Ranked 10th Ranked 213rd
$21,860,598 million USD Real GDP growth rate of -3.9%
Human Development Index (HDI):
Social Ranked 50th globally
HDI Rating: 0.798
Infrastructure:
Technological Gross Fixed Capital Formation Annual Growth: -2%
Emission Standards:
Legal Successfully complies with EU emission standards, but typically behind the
curve in adopting to stricter limits on emissions
High corruption,
Highly sensitive to the scandal, VW sales dropped
Why not? low political
26%
stability
--INDEX--India Macro-Environmental Factors
Corruption: Political Stability: EV Scheme:
Political Ranked 76th Lowest 15% Incentives of up to $2,177
CPI: 38 Rating:-0.96 USD available for electric cars
GDP: GDP Growth:
Economic Ranked 9th Ranked 14th
$2,048,000 million USD Real GDP growth rate of 7.3%
Human Development Index (HDI):
Social Ranked 130th globally
HDI Rating: 0.609
Infrastructure:
Technological Gross Fixed Capital Formation Annual Growth: 4.13%
Emission Standards:
Legal Low emission standards and regulation
High corruption, Low EV Sales:
Why not? Low HDI, low 2012: 85,000–100,000 EVs sold
infrastructure 2014: 7000-8000 EVs sold
--INDEX--You can also read
