Fossil Fuels Remain The Future. VW To Invest 60 Billion Euros In Combustion Engines!
By P Gosselin on 14. June 2024
In a surprising move, Volkswagen announced it plans to invest 60 billion euros in the development of new combustion engines as confidence in electric mobility plummets in Germany and elsewhere.
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Strategy adjustment
“This change in strategy shows that the transition to electromobility is progressing more slowly than expected,” reports Germany’s Blackout News here. “Just last year, Volkswagen assumed that electric cars would account for 80 percent of annual sales in Europe by the end of the decade. However, the lukewarm reception for its own ID models is forcing the company to adjust its strategy.” Also see ( motor1: 07.06.24).
As German sales of electric vehicles fall way short of government targets due to their unpopularity and high costs, manufacturers are seeing the writing on the wall: Electric mobility still has a long way to go.
Reality check
Originally, the Wolfsburg-Germany based VW planned to invest 180 billion euros only for the next generation of electric vehicles, but now it also plans to invest 60 billion euros for internal combustion engine development.
“The future is electric, but the past is not over yet. It is a third and it will remain a third.” Arno Antlitz, Chief Financial Officer and Chief Operating Officer of the Volkswagen Group.
Electric mobility gets postponed
The announcement underscores the importance of internal combustion engines in the future, despite declarations from the media and governments claiming they would disappear over the next 1 or 2 decades.
Volkswagen said in 2022 it would sell only electric cars by 2033. This obviously is not not longer the case.
Other luxury VW brands like Bugatti, Lamborghini and Bentley are also focusing on continuing the combustion engine, but steering towards synthetic, alternative fuels.
Blackout News also reports, “Ford no longer believes it will be all-electric in Europe by 2030. Aston Martin has also decided to build cars with combustion engines into the next decade.”
What’s behind the sudden swing back to combustion engines and the growing aversion to electric cars?
As the recent European election results starkly show, customers are tired of being told what to buy and what rules to follow. Germany’s Green Party lost nearly half its voter base in last Sunday’s EU election. Moreover, China’s ability to produce electric cars cheaply is being increasingly viewed as a threat.
“The electric offensive from China is worrying established car manufacturers,” comments Blackout News. “Car manufacturers must react flexibly and invest in both electric and conventional technologies. This is the only way they can meet market and regulatory requirements.”
Fossil Fuels Remain The Future. VW To Invest 60 Billion Euros In Combustion Engines! (notrickszone.com) |
