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Yet another week has gone by, and a major traditional automaker is pausing its plans to become fully electric by 2030, 2040, or possibly at a point that’s still too far off to predict.
Executives from Volkswagen Group have now joined the ranks of auto manufacturers reconsidering a total commitment to electric vehicles (EVs). As reported by Automotive News, CFO and COO Arno Antlitz confirmed that VW Group intends to keep investing in traditional internal combustion engines (ICE). *gasp*
So, what kind of investment are we discussing here? A small amount? Not at all. A staggering one-third of €180 billion, roughly $64 billion based on current exchange rates. Seriously?
For many, ICE is as controversial as diesel engines. On the VW front, it initially seemed the shift to EVs was gaining momentum, with the Volkswagen brand reaching its milestone of selling 500,000 EVs a year ahead of schedule, and CEO Thomas Schaefer labeling e-fuels as “unnecessary noise.”
However, VW is a brand that pays attention to consumer sentiment. Even without legal challenges, features like physical buttons have made a comeback. Furthermore, despite the rapid initial growth in EV sales, that momentum has not been sustained. While EVs steadily capture more market share, the rate at which consumers are purchasing them is slowing.
This year alone, companies like Ford, General Motors, and Mercedes-Benz have announced pauses or made adjustments to their electrification plans. Ford has urged its dealers to hold off on EV-focused investments as it reassesses its retail strategy. GM’s commitment to an all-electric lineup will now unfold over several decades rather than by 2035. Meanwhile, Mercedes-Benz has indicated that while EVs are part of its long-term vision, a combination of ICEs, EVs, and hybrids (PHEVs) will offer the most immediate balance—which could even include a twin-turbo V8. *double gasp*
As Arno Antlitz of VW candidly put it, “The future is electric, but the past is not over.” Ah, ICE, it seems they never intended to let you go, abandon you, or forsake you.
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