AutoNation CEO Mike Jackson told CNBC on Tuesday that he believes so-called reach anxiety has become less of a concern for Americans who buy an electric vehicle.
Concerns about how many kilometers could be covered before a battery needed to be recharged have long been considered a barrier to EV adoption. But in an interview in the “Squawk Box”, Jackson said that Americans understood better how to maximize the benefits of electric vehicles.
“Reach anxiety is disappearing dramatically because American ingenuity – they found out how they live, how they are going to use it, and that is not a problem,” he said.
Most of the time, people will be driving their electric vehicles for day-to-day trips, Jackson said.
“They like this: they buy an electric car and tell us, ‘Do you know what’s good? I never have to go to a gas station again,'” said the auto industry veteran. “They use the car within a 200-250 mile radius.”
That means they don’t have to look for public charging stations during the course of their normal routines, he said. “Every time they get home, they call for the night. That’s it. They’re ready. They leave in the morning, it’s fully charged. They didn’t go to a gas station.”
The situation differs somewhat for longer units, such as a cross-country trip, Jackson said, adding that there needs to be more investment in charging for infrastructure.
“But most people who are buying electric cars have an internal combustion engine in their car portfolio as well, and therefore, for long distance travel, they still use the [Chevrolet] Suburban that will take them anywhere in America, “said Jackson.” For their daily use at home or in the office, they are delighted to have an electric vehicle. “
Jackson’s comments follow a series of major developments in the automotive industry in relation to electric vehicles.
General Motors announced in late January that it plans to end production of all diesel and gasoline-powered cars, trucks and SUVs by 2035. And in early February, rival Ford said it was increasing its investment in electric vehicles by 2025.
“We are not going to give the future to anyone,” said Jim Farley, Ford’s CEO, to CNBC the day after the news of the EV was made public.
However, even with developments that draw attention to EV production, Jackson said the industry transition will be prolonged and the two types of vehicles will coexist for decades. “This is not like moving from flip phone technology to a smartphone, where suddenly everything else is obsolete,” he said.
In 2030, Jackson said he expects about 20% of new vehicles sold to be electric, but only 6% of all vehicles on the roads. “This is a decades-long journey from the internal combustion engine to electrification, but it is here. It is underway. We embrace it,” he said. “It is exciting and we have great vehicles coming from all manufacturers.”
Jackson’s comments on Tuesday came after AutoNation reported better-than-expected results in the fourth quarter. The Fort Lauderdale, Fla.-Based company posted quarterly revenues of $ 5.8 billion, when analysts forecast $ 5.6 billion. Adjusted earnings per share of $ 2.43 exceeded Wall Street estimates by 42 cents.
AutoNation’s shares closed up 1% on Tuesday. The shares have risen nearly 70% in the past 12 months.