Here’s Why VW Doesn’t Actually Want to Kill Tesla

Headlines! They’re super easy. “Millennials Kill X,” “Top Ten Y,” and that old favorite for autojournos, “This is How Manufacturer Z Will Kill Tesla.” It’s easy, fun, and everybody clicks. But Matthias Erb, Volkswagen of America’s Chief Engineering Officer, believes that Tesla’s death would actually be pretty bad for the industry.

“Honestly, we do not hope that [Tesla will go bankrupt],” says Erb. “Not at all.”

The reason, as you’d expect, has to do with VW’s own electric ambitions. Now that it has invested itself heavily in the electric market, it’s important for the market to keep growing. And that’s been the trend with demand outstripping production for all kinds of EVs, including the e-Golf.

Much of that enthusiasm can be attributed to the high tide of Tesla. Its combination of attractive design, green appeal, and Silicon Valley technology made it popular to a wide audience.

“They created so much positive impact and so many new ideas,” says Erb. “Yeah, why not have them around?”

Unfortunately, the company internal structure and turnover are as interesting as its cars are. That uncertainty has caused rumors of trouble and even bankruptcy, to abound. And despite automakers comparing themselves to Tesla and looking to take over its position in the market, Erb doesn’t think it would be good if the company simply folded.

“It’s going to be a real mess for the whole EV idea, so let’s not hope that it’s not going to happen,” he told us at the New York Auto Show. “The cars are getting better. So we are not hoping for that. Not at all.”

That’s not to say, though, that Erb doesn’t think VW’s EVs will be better. With a range of I.D. vehicles designed specifically for electric propulsion on their way coming in at VW prices, Erb sees the future as very difficult for Tesla.

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