December 26, 2024 – Andy Palmer, known as the “godfather of electric vehicles,” has issued a stark warning to automobile manufacturers considering abandoning electric vehicles in favor of hybrid cars.
Palmer, who previously served as CEO of Aston Martin and held senior positions at Nissan, sat down for an interview with Business Insider where he described the path of hybrid vehicles as a “foolish road” for companies delaying their transition to fully electric fleets. He cautioned that such a delay could put these companies at risk of being overshadowed by Chinese electric vehicle manufacturers.
Palmer’s moniker as the “electric vehicle godfather” stems from his pivotal role in the development of Nissan’s Leaf electric car. Since its launch in 2010, over 500,000 units of the Leaf have been sold, marking it as the first mass-produced electric vehicle in the world.
“Hybrid cars are a dead end,” Palmer stated. “They are merely a transitional tactic, and the longer you linger in this transition, the slower you’ll enter the new era of electric mobility. If you use hybrids to postpone the electric car revolution, you’ll remain at a disadvantage for a longer duration.”
According to Palmer, the success of China’s electric vehicle industry owes largely to the country’s long-term industrial policies. The Chinese government has invested at least $230 billion in subsidies for electric car manufacturers since 2009. Having served on the board of Dongfeng Motor Corporation, he witnessed firsthand the proactive role of the Chinese government in promoting new energy vehicles. He emphasized that China’s clarity in industrial strategy is something the West has long lacked.
Palmer also mentioned that tariffs imposed by Europe and the US on Chinese goods only undermine Western competitiveness. He advised Western carmakers to prepare for a “survival of the fittest” competition with Chinese brands, particularly in Europe where companies like BYD and XPeng are rapidly expanding. “If Chinese brands can succeed in the European market, they’ll be invincible globally,” he predicted.
While Toyota’s early hybrid strategy proved successful, the shift towards electric vehicles in the Chinese market has exposed its limitations. “Toyota has led the Japanese auto industry into a blind alley, making it difficult to recover,” Palmer analyzed.
Furthermore, he lamented that Nissan failed to capitalize on its electric vehicle technology and early market lead, resulting in its current predicament. “Nissan’s management issues have contributed to this situation, leaving them with a weak electric vehicle portfolio,” he said.
Palmer identified the high cost of electric vehicles as a major factor in consumer hesitation. He suggested offering smaller, less expensive models with smaller batteries to match traditional fuel car prices. He also called for increased government support in expanding charging networks to alleviate concerns about battery life. Drawing from China’s industrial strategy, especially in battery technology, Palmer urged the West to follow suit if it wishes to catch up. “The West should learn from China’s approach if it wants to keep up,” he concluded.
