Source: VW Won’t Offer Plug-In Hybrids in America | News | Car and Driver | Car and Driver Blog C/D: You say the Tiguan will become the world’s biggest-selling SUV, but it doesn’t have a hybrid powertrain yet. HD: No, not in Europe. You showed the concept car originally as a hybrid, and it’s not a hybrid. We will have a hybrid. In Europe? It’s not yet decided. In America? No. For America, plug-in hybrids don’t make a lot of sense for the upstream emissions, and they’re just not incentivized by the tax schemes. . . . Bob Wilson
Wait what? That last one confuses me. They are incentivized by the current tax scheme (just put a battery bigger than 15kWh if they want the max credit). Also, anything sized battery that reduces actual fuel consumption can help. They're holding the same opinion as an uneducated public. "Oh it's not full EV? I'm not buying it because you're still using gasoline... and also EVs are too expensive... so... I'm just gonna keep driving my fully ICE car" Sure.. that's sound logic.
"Plug-ins don’t make a lot of sense for us in America—decided. They might make sense for us in Europe—not decided. They make sense in China—decided." Disappointing, but I get where they are coming from. For CARB's ZEV program, a sold PHEV helps in accounting the company's fleet ZEV ratio, doesn't earn a single transferable ZEV credit. Each BEV sold gets 3 or 4 in comparison. In CAFE, the PHEV gets a multiplier to its fuel economy rating, but a BEV gets a bigger multiplier applied to a higher MPGe figure. On top of that, a BEV may soon have a total ownership cost equal to that of a traditional car. They are also cheaper to develop, since they have no emission regulations to meet, nor controls to install. While they might have a price advantage over a long range BEV because of current battery costs, having both a full power EV propulsion and an ICE means higher develop costs for a PHEV. So higher prices for the cars. China is pushing electrics, so their incentives are likely more generous. Europe's may not be set yet, and vary between countries. The quote about tax schemes is off. Perhaps he simply misspoke, but it also includes that bit about upstream emissions. A rebate would have been an easier way of doing things than a tax credit. For the non-plug in hybrids, the market in the US is soft. Most buyers opt not to pay the thousands more for a full hybrid. A mild hybrid car might be an easier sale. Audi and Porsche already sell PHEVs in the US, and this doesn't state them being cancelled.
PHEVs are hybrids with a bigger battery, conceptually. Bigger MGs (and inverter/control) are needed for true EV experience, that's a fact, but does it really change that much? Betting on a mainstream 48V system (same components, downscaled) with questionable results in FE is a bit confusing...
VW is just tailoring what they will offer in a market based upon what they think will sell. The Jetta hybrid did poorly here. Though I bet its high price tag was the main reason for that. The Audi A3 E-Tron also isn't a big seller. Between it being more performance oriented and the EPA's testing, the EV range is only 16 miles, and the ICE is "highly thirsty". I don't see the Golf version doing much better on the EPA. 20 miles EV range is the minimum needed for a successful PHEV at this point. People buying a Porsche PHEV are doing so for the performance boost the grid charge gives the ICE. Hybrid sales follow gas prices in the US. Toyota needs to discount the Prius, and its sales are still down from last year. So even if reasonably priced, a full hybrid from VW will be a tough sell here. A crossover one could be an exception now, but VW doesn't sell full size trucks. Even with the upcoming Atlas, they likely don't need a hybrid to reach CAFE targets. They plan on selling BEVs to meet those needs. In their view, they don't need a PHEV for the same reason they don't need a full hybrid. Keep in mind that this only applies to America. VW will offer PHEVs and maybe full hybrids in China, and they might in Europe. I guess they are waiting to see how local regulations and incentives will pan out there. First off, they aren't betting on it, they and nearly everybody else has acknowledged that a cost effective mild hybrid system is needed to meet stricter emission and fuel economy targets. The emissions could be the more important factor here. The FE improvements will be smaller than a full hybrid, but so will be the price tag. Without high fuel prices in the US, the hybrid premium is currently a big disincentive for getting a one. Reduce it, and it becomes an easier sell. For other markets, lower cost makes it easier to make the hybrid option standard.