Michael Jost, former head of VW Group’s product strategy, recently addressed the car industry, policymakers, and the general public at the E4Testival in Germany. His message was clear: “There is no alternative for electromobility and the so-called technology openness is an illusion.”
His discourse was titled “Electrify the world – think bigger.” He asked his audience to look beyond the immediate and focus on a comprehensive transformation of energy use, mobility, and the economy. “Tomorrow starts now. Whoever still keeps looking for alternatives hasn’t understood the physical and economic reality. You study one semester Physics and another Business Economics, and you know that there is no alternative to cars but electric drive.”
Timeline
Jost drew a timeline that proved that the car industry has already moved toward that future. He mentioned that, for example, the VW Group had already adhered to the Paris 2015 climate agreement (CO2-neutral in 2050) in 2018 and made it one of the key pillars of its strategy.
“This means that no later than 2040, the last car with an internal combustion engine will be sold. That means this car was introduced to the market 7 years earlier, and this particular model was developed around… 2026. So, the development of the last ICE cars ends today and not in the distant future. For engineers, developers, and strategists, the transition to electromobility is already a reality, despite the still reigning discussions about when and where.”
Of course, stipulated Jost, this transition has economic and financial consequences. “The parallel period where ICE cars are ‘phased out’ and EVs are ‘phased in’ is a serious financial burden, a so-called ‘EBIT massacre’.”
“The profit margins for ICE cars are shrinking while the industry is still waiting for the ‘upscaling effect’ of electric cars and the return on their investments. It’s a phase they all have to go through and a strategic decision that the VW Group already made.”
No technological multipath, but a clear goal
According to Jost, the so-called technological openness that the car industry is pleading for leads to nothing. “We have to concentrate on what we can do; we can’t afford to diverge into hydrogen or synthetic fuels.”
“Hydrogen is like a bog body. It appears every five years and then disappears again. This energy carrier will have its applications, but not for cars. We need it for our steel and chemical industry and several other applications, but not to drive cars.”
“This so-called openness leads to a strategic paralysis. It’s not a sign of progress; it’s a sign of decision avoidance. Instead of investing in ideological discussions, Germany (and the whole of Europe) has to draw a straight line and make electric drive the leading technology.”
Renewable energy is key
Jost is clear: “Electric energy is in this century what oil was in the 19th and 20th century. If Europe wants to be independent, it has to produce its own energy, and renewable energy plays an important role. Windmills or solar panels are assets, not burdens.”
“Just the electric car alone isn’t enough. Only he who controls hardware, software, energy, and data will be relevant in the future. Applied to the car industry, it can’t be based solely on production numbers and profit margins, but must take into account life cycles, residual values, and user models. The price of a car is no longer important; what it costs per kilometer is key. We don’t have to buy a car if we can lease it, subscribe to it, or share its use.
Think bigger
Jost’s conclusion is clear: “We have no time left to lose. We have to think bigger; otherwise, we will lose our planet. Electromobility is not a goal; it’s the start of a paradigm change. We must leave the past behind and move on, avoiding the temptation to invest in dead horses.”
“This transformation is more than technical innovation. It’s a general behavior. Whoever wants to talk about the future of mobility has to consider questions about energy, data, and well-being in general.”
Jost no longer seems like a former top manager in the car business; he has become a visionary who wants to drive the next industrial revolution. “Electromobility is the beginning; the real revolution starts now. We need the courage to leave behind what we know and see mobility as part of an entirely new, sustainable energy system.”
After leaving Volkswagen, Michael Jost founded his own company, eD-TEC, where he aims to “electrify the ocean” by developing electric-powered watercraft.
