Porsche Suggests Europe’s Ban on Combustion Engines Might Face Delays
Insights into Porsche’s Optimistic View on Combustion Engine Future in the EU
Porsche’s Chief Financial Officer, Lutz Meschke, hinted at the possibility of sales of new cars with combustion engines continuing in the European Union post-2035. This statement was made during the debut of Macan EV in Singapore. Meschke’s optimism stems from ongoing discussions indicating a potential delay in the end of the combustion engine era. The ban proposed for 2035 focuses on vehicles emitting harmful emissions. However, exceptions might be made for engines running on hydrogen or synthetic fuels that are environmentally friendly. Reports suggest that the European Commission is considering allowing sales of new internal combustion engine (ICE) cars post-2035 if they use climate-neutral fuels.
Porsche’s Shift Towards Electric Vehicles by 2030
Despite the speculation, Porsche is aligning its strategy with electric vehicle (EV) dominance, projecting over 80% of its global annual car sales to be EVs by 2030. The transition involves phasing out gas models, with the first-generation Macan expected to be discontinued in the EU due to upcoming cybersecurity regulations. This move signifies a shift towards the second-generation electric model, albeit at a higher price.
Lincoln’s Dealer Network Restructuring in the United States
On another front, Ford’s luxury brand, Lincoln, is in the process of streamlining its dealer network in the United States. Following the elimination of 100 dealers last year, Lincoln is set to reduce another 100 dealerships in 2024, aiming to have around 400 showrooms by the year’s end. The restructuring involves incentivizing dealers who opt for buyouts with additional Ford inventory and customer loyalty programs.
Buick and General Motors’ Dealer Footprint Changes
In a similar vein, Buick, another American luxury brand, underwent significant changes in its dealer network, nearly halving the number of showrooms by the end of 2023. General Motors, Buick’s parent company, has urged dealerships to invest in EV-related resources or consider buyout options. This strategic shift resulted in a 47% reduction in Buick dealerships compared to the previous year.
Conclusion
The automotive industry is navigating a transformation towards electric mobility, with Porsche’s optimism about combustion engines’ future contrasting with the industry’s EV-focused trajectory. Dealer network restructuring by Lincoln and Buick underscores the evolving market dynamics, emphasizing the growing importance of sustainable practices in the automotive sector.
FAQs
Q: Why is Porsche confident about the future of combustion engines in the EU post-2035?
A: Porsche believes that exceptions might be made for engines running on environmentally friendly fuels, such as hydrogen or synthetic fuels, under the proposed ban on combustion engines after 2035.
Q: How is Porsche transitioning towards electric vehicles?
A: Porsche aims to have over 80% of its global annual car sales as electric vehicles by 2030, signifying a strategic shift towards EV dominance.
Q: What changes are happening in Lincoln and Buick’s dealer networks?
A: Lincoln is streamlining its dealer network by cutting down on dealerships in the US, while Buick witnessed a significant reduction in showrooms, reflecting a broader industry trend towards EV adoption and sustainable practices.
