AutoNation CEO Mike Jackson told CNBC on Tuesday that he believes so-called autonomy anxiety has become less worrying for Americans buying an electric vehicle.
Concerns about the number of miles that could be traveled before the battery was recharged have long been considered a barrier to EV adoption. But in an interview with Squawk Box, Jackson said Americans understood better how to maximize the benefits of electric vehicles.
“Remote anxiety disappears dramatically because American ingenuity – they’ve figured out how to live, how to use it, and it’s not a problem,” he said.
For the most part, people will drive their electric vehicle for daily trips, Jackson said.
“Here’s what they like: they buy an electric car and they tell us, ‘You know what’s great? I don’t have to go to a gas station again,'” said the veteran of the auto industry. “They use the car for a range of 200-250 miles.”
That means they don’t need to look for public charging stations during their normal routine, he said. “Every time I get home, I plug it in for the night. It’s done. They’re done. I go out in the morning, it’s fully charged. They didn’t go to a gas station.”
The situation is slightly different for longer drives, such as a country trip, Jackson said, adding that there must be more investment in infrastructure charging.
“But most people who buy electric cars also have an internal combustion engine in their car portfolio and, therefore, for long-distance driving, they still use [Chevrolet] Suburban that will take them anywhere in America, “Jackson said.” For their daily use around their home or office, they are excited to have an electric vehicle. “
Jackson’s comments follow a number of major developments in the automotive industry in terms of electric vehicles.
General Motors announced in late January that it plans to end production of all diesel and gasoline cars, trucks and SUVs by 2035. And in early February, Crosstown rival Ford said it was increasing its investment in vehicles. electric by 2025.
“We will not give up on anyone’s future,” Ford CEO Jim Farley told CNBC a day after EV news was made public.
However, even with the attractive developments in electric vehicle production, Jackson said the transition in the industry will be smooth and both types of vehicles will coexist for decades. “It’s not like switching from flip phone technology to a smartphone, where they suddenly outdo anything else,” he said.
By 2030, Jackson said he expects about 20 percent of new vehicles sold to be electric, but only 6 percent of all vehicles on the road. “This is a decade-long journey from the internal combustion engine to electrification, but it’s here. It’s ongoing. We accept it,” he said. “It’s interesting and we have great vehicles coming from all manufacturers.”
Jackson’s comments came on Tuesday after AutoNation posted better-than-expected results in the fourth quarter. The Fort Lauderdale, Florida-based company reported quarterly revenue of $ 5.8 billion, when analysts forecast $ 5.6 billion. Adjusted earnings per share of $ 2.43 exceeded Wall Street estimates by 42 cents.
Shares of AutoNation closed 1% on Tuesday. The stock has grown by almost 70% in the last 12 months.