More than once we have already talked about the topic that the transition to electric cars is not happening in the way that most European car manufacturers predicted. Now several automakers from the Old Continent are already revising their plans, including Volkswagen.
Last year Volkswagen predicted that electric vehicles would account for 80% of its annual sales in Europe by the end of the decade. However, the sales statistics of the ID family models forced Volkswagen to reconsider its strategy.
Of the 180 billion euros earmarked for the next generation of electric vehicles, the German brand has now decided to use a large part of it to continue the development of internal combustion engines. This was announced by Arno Antlitz, Chief Financial Officer and Chief Operating Officer of the Volkswagen Group.
According to the new decision, the company intends to spend approximately 60 billion euros to "ensure the competitiveness of our vehicles with internal combustion engines". Speaking at an event organized by Reuters in Munich, the CFO added that “the future is electric, but the past is not over.
This is a significant change from Volkswagen's plans, announced at the end of 2022, to produce and sell only electric cars in Europe from 2033. Last year, VW brand boss Thomas Schaefer called LPG “outdated technology” in the context of e-fuels.
He described discussions around synthetic fuel as "unnecessary noise", despite the fact that one of the VW Group brands (Porsche) is actively involved in the production of synthetic fuel with its plant in Chile. Other premium class brands and also from the VW empire are closely following the development of sustainable fuels.
Bugatti, for example, is considering designing synthetic-fuel home gas stations so owners can fill up their cars at home. Lamborghini believes the internal combustion engine can be preserved by running on a different type of fuel, while Bentley is exploring the possibilities of a near-carbon neutral fuel.
Bentley has postponed its goal of going all-electric until 2030. Likewise, Ford no longer plans to go all-electric by the 2030s. in Europe. Recently, Aston Martin has also changed its plans and will continue to produce cars with internal combustion engines for the next decade.
It is clear that more and more car companies are rethinking their EV strategies, as it has become clear that consumers are not ready to give up internal combustion engine cars at all. But on the other hand, car manufacturers are in a very difficult situation.
This is because emissions regulations are getting stricter, requiring significant investment to make traditional engines cleaner. At the same time, electrification, which is actively developing in China, is causing concern among many market players.