AutoNation CEO Mike Jackson told CNBC on Tuesday that he believes the so-called distance anxiety has become less of a concern for Americans buying an electric vehicle.
Concerns about how many miles can be driven before a battery needs to be recharged have long been seen as an obstacle to EV acceptance. But in an interview with Squawk Box, Jackson said Americans better understand how to maximize the benefits of electric vehicles.
“Serial anxiety disappears dramatically because American ingenuity – they’ve figured out how to live, how to use it, and that’s not a problem,” he said.
People will mostly drive their electric vehicle for daily trips, Jackson said.
‘Here’s what they like: they buy an electric car and they say to us,’ Do you know what’s great? “I will never have to go to a petrol station again,” said the veteran of the automotive industry. “They use the car almost in a radius of 200-250 miles.”
That means they do not need to look up public charging stations during their normal routines, he said. “Every time they get home, they put it in for the night. That’s it. They’m done. They come out in the morning, it’s full loaded. They’re not at a gas station.”
The situation differs a bit for longer rides, such as a land trip, Jackson argues, adding that there needs to be more investment in charging infrastructure.
“But most people who buy electric cars also have an internal combustion engine in their portfolio, and therefore they still use the [Chevrolet] Suburbs that will take them all over America, “Jackson said. For their daily use in their home or office, they are delighted with an electric vehicle. “
Jackson’s comments follow a major development in the automotive industry regarding electric vehicles.
General Motors announced in late January that it plans to end production of all diesel and petrol-powered cars, trucks and sports utility vehicles by 2035. And in early February, competitor Ford said it would increase its investment in electric vehicles by 2025.
“We are not going to give up on anyone in the future,” Ford CEO Jim Farley told CNBC a day after the EV news was announced.
But even with the attention-grabbing development around EV production, Jackson said the transition to the industry will be protracted and that both types of vehicles will continue for decades to come. “It’s not like going from the browsing phone technology to a smartphone, where they suddenly age everything,” he said.
By 2030, Jackson said he expects about 20% of the new vehicles sold will be electric, but only 6% of all vehicles on the road. ‘It’s been a decades-long journey from the internal combustion engine to electrification, but it’s here. It’s going on. We accept that, ‘he said. “It’s exciting and we have amazing vehicles coming from all the manufacturers.”
Jackson’s comments come Tuesday after AutoNation announced better results than the expected fourth quarter. The Fort Lauderdale, Florida-based company generated quarterly revenue of $ 5.8 billion when analysts forecast $ 5.6 billion. Adjusted earnings per share of $ 2.43 beat Wall Street estimates by 42 cents.
Shares of AutoNation closed 1% on Tuesday. The share has risen by almost 70% over the past 12 months.