AutoNation CEO Mike Jackson told CNBC on Tuesday that he believes so-called anxiety about autonomy has become a concern for Americans buying an electric vehicle.
Concerns about how many miles could be covered before needing to recharge a battery have long been considered a barrier to the adoption of electric vehicles. But in an interview with “Squawk Box,” Jackson said Americans have better understood how to maximize the benefits of electric vehicles.
“Rank anxiety is disappearing dramatically because of American ingenuity: they figured out how to live, how they’re going to use it, and it’s not a problem,” he said.
For the most part, people will drive their electric vehicle to make day-to-day trips, Jackson said.
“That’s what they like: they buy an electric car and they tell us,‘ You know what’s great? I never have to go to a gas station again, “the veteran of the auto industry said.” They practically use the car within a radius of 200 to 250 miles. “
That means they don’t need to look for public charging stations during the course of their normal routines, he said. “Every time they get home, they plug it in at night. It’s over. They’re done. They leave in the morning, it’s fully charged. They didn’t go to a gas station.”
The situation differs slightly for longer units, such as a cross-country trip, Jackson said, adding that there needs to be more investment in infrastructure charging.
“But most people who buy electric cars have an internal combustion engine in their vehicle portfolio as well and therefore to drive long distances, they continue to use [Chevrolet] Suburban that will take them anywhere in the United States, “Jackson said.” For daily use at home or in the office, they are happy to have an electric vehicle. “
Jackson’s comments follow a major development of 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 City said it would increase its investment in electric vehicles until 2025.
“We will not give the future to anyone,” Ford CEO Jim Farley told CNBC a day after the news about EV was made public.
However, even with the developments that draw attention around the production of electric vehicles, Jackson said the transition of the industry will take place and that both types of vehicles will coexist for decades. “This is not like moving from flip phone technology to a smartphone, where everything else has suddenly become obsolete,” 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 underway. We accept it,” he said. “It’s exciting and we have fantastic vehicles from all the manufacturers.”
Jackson’s comments came Tuesday after AutoNation posted better-than-expected fourth-quarter results. The Fort Lauderdale, Florida-based company posted quarterly revenue of $ 5.8 billion, when analysts had 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. Shares have risen nearly 70% in the last twelve months.