VW Is Shifting Billions From EV Plans To Gas Car Development

Another week has passed, and yet another carmaker has indicated that it may postpone its ambitions to transition to all-electric vehicles by 2030 or 2040, or possibly until animals such as pigs can fly.

Volkswagen Group is the most recent carmaker to reevaluate its all-or-nothing stance on electric cars (EVs). According to Automotive News, Volkswagen Group’s CFO and COO, Arno Antlitz, reportedly stated that the company will keep funding internal combustion engines (ICEs).

However, the question is, what is the impact of this investment? It will be very big. At current exchange rates, ICE will continue to receive $64 billion, or one-third of its €180 billion budget.

ICE is as unappealing to many people as diesel. Volkswagen achieved its milestone of selling 500,000 EVs a year ahead of schedule, suggesting that the company is totally dedicated to EVs. VW CEO Thomas Shaefer likewise dismissed e-fuels as “unnecessary noise.”

Nevertheless, VW is a company that pays attention to what the public has to say. For example, in response to public demand, buttons were brought back without legal intervention. Even while EV sales got off to a great start, the growth hasn’t been as steady. Although EVs are becoming more popular, consumer acceptance is still sluggish.

This safe approach is not exclusive to Volkswagen. Ford, General Motors, and Mercedes-Benz similarly declared changes to their electrification plans earlier this year. Ford asked dealers to hold off expenses focused on electric vehicles while it reviewed its retail approach. GM changed its original goal of 2035 to “decades” as the timeframe for its all-electric lineup. Mercedes-Benz emphasized a well-rounded strategy, combining ICE, EVs, and plug-in hybrid electric cars (PHEVs) in the future, maybe with a twin-turbo V8.

Antlitz remarked, “The future is electric, but the past is not over.” This sentiment echoes that legacy automakers are not entirely ready to abandon ICE.