Chevron CEO Mike Wirth doesn’t drive an electric car, but the Dow Jones energy giant is investing in charging stations and his truck could get an electric model soon.
Mike Wirth says while he understands why electric cars or hybrids work for some drivers, he drives a Ford (F) F-150 pickup truck when he’s away from work.
Consumers take into account vehicle costs, life-cycle costs, range and cargo for hauling kids to soccer practice or to go hiking or skiing.
“Pure electric (cars) often times are a second or third car for some people,” Wirth said in an interview with IBD. “I think these markets are evolving, this technology is evolving.”
“I don’t own one simply because the things I like to do are better done with other vehicles,” the Chevron (CVX) chief executive continued.
Paving The Way For Electric Trucks
But automakers are trying to catch up to consumers who want to make hybrid or all-electric cars their first choice when buying an auto.
Ford is investing $11.1 billion in electric vehicles and in March announced it would expand production of its next-generation battery electric vehicles at its Michigan assembly plant.
And Wirth could have the option to get an all-electric F-150 soon. The automaker has announced plans to turn its popular truck electric. A hybrid F-150 is slated for 2020.
Ford is also investing in Rivian. The Amazon (AMZN)-backed startup’s five-passenger R1T pickup electric truck and seven-passenger R1S SUV are scheduled to launch in late 2020.
Ford rival General Motors (GM) is developing its own electric pickup truck. And Tesla (TSLA), which started the high-end electric-car boom, plans to unveil its pickup truck at the end of the summer.
Chevron shares were flat at 124.93 on the stock market today. Ford fell 0.6% to 9.93. Amazon was just below break-even. GM stock edged down 0.4%.
Chevron Invests In Charging Stations
With the popularity of electric cars rising, integrated oil companies are investing in charging stations.
Earlier this year, Chevron (CVX) started offering EVgo electric charging stations at select gas stations in California.
But oil majors in Europe are leading the charge in electric charging capabilities.
Royal Dutch Shell (RDSA) has invested $1 billion in renewable-energy and electric-vehicle technology. It is also working with a group of automakers including BMW, Ford and Volkswagen (VLKAY) to build a network of charging stations in Europe.
France’s Total (TOT) bought G2mobility, an electric-vehicle charging solutions company.
Europe is imposing stiff emissions limits that will force many automakers to boost hybrid and electric-vehicle products to avoid big fines.