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Volkswagen releasing 40 new EVs and hybrids!

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Yes, big companies like VW have tons of resources to bring to bear on a problem. However, most big companies are really a bunch of warring, jealous entities that are fighting for turf. As such, they tend to work hard to dilute other efforts within the company. So I would expect a lot of mediocre designs to come out. If I were the head of a major car company, I'd create a "skunk works" team of the best and brightest and give them the mission of building the best EV out there. Set them up in some out of the way place (like silicon valley) and let 'em rip. This the best way to break free of the tyrannies of the past. I'm sure it won't happen because big companies like to talk about synergy, scale, product line and so on. Every one will want a piece of the shiny new thing and kill it with 1K cuts.
 
The Model S has outsold the M5 in the US year to date, I don't think BMW is cancelling that car anytime soon. Same with the A8, and the Porsche Panamera.

Correct, but why should BMW cancel the M5 on account of that fact? Plus, the M5 is just one model of the 5-series (and certainly not the top selling one). I'd wager the 530 or 535 Diesel is outselling the M5 tenfold.
Anyway, I was just trying to say that VW (after all that's what this topic is about) is selling millions of cars each year, all of them (up to now) with conventional engines, of which many are very fuel efficient already while at the same time quite affordable (especially the Skoda lineup is selling like crazy here, because these are great value for money cars - that means a lot to many people).
Let's face facts: EV's are great to drive (especially the Model S), they can be cheaper to run (under certain conditions), and they might be the future of cars. I say might because one never knows what surprises the future has in store.
But EVs are also still a novelty, many are urban mobility vehicles, nothing more. Only Model S up to now has shown the true potential of EVs as viable alternatives for everyday use. But at a high cost that many people just can't afford. And even if they could, there will still be petrolheads that just don't want an EV. Amongst my colleagues are many sceptics that aren't even won over by the rave reviews I gave them of my Model S test drive. They always bring up the range argument. And while we here know that is BS, to those people (in their minds) that just cancels out even considering an EV as a potential next car.
So I think many in the "old" automotive industry think alike. At least VW is bold enough (like Renault and BMW) to release several EVs into the market, even if their offerings are (for starters) just electrified variants of current models like the up! or the Golf. It's a start at least. I just hope these cars will sell well enough to make VW (and the others) then finally develop "real" EVs.