While many car manufacturers had announced their transition to electric, some are backtracking. This is the case of Volkswagen, which has just announced a massive investment of 60 billion euros in combustion engines, thus creating a surprise in the automobile industry.
An unexpected change of direction for Volkswagen
In 2022, Volkswagen announced its intention to only manufacture and sell electric cars in Europe from 2033. The group then estimated that annual sales of electric vehicles would represent 80% of the European market at the end of the decade. However, faced with a mixed response from customers, Wolfsburg managers decided to review their strategy:
If the future remains electric for Volkswagen, the past has not disappeared. Thermal engines will therefore continue to play a key role in the German group's strategy.
Other manufacturers follow suit
Volkswagen is not the only manufacturer to review its plans. Several prestigious brands have also reversed their transition to electric:
This turnaround can be explained by a complex economic reality and a lower-than-anticipated demand for electric vehicles.
Europe facing its contradictions
The European Union wanted to position itself as a leader in the ecological transition in transport, despite a limited impact on overall emissions compared to giants like China or the United States. This race towards electrification has pushed manufacturers to their limits:
Europe, the historic cradle of the thermal automobile, risks seeing itself overtaken by Asia in the electric field. A bitter observation for an industry which has long been the pride of the Old Continent.
What future for thermal engines at Volkswagen?
Although Volkswagen is once again focusing on combustion engines, the group is not abandoning its electric ambitions. The 60 billion euros invested will make it possible to maintain the competitiveness of thermal models, while continuing to develop the electric range.
Some brands in the group, such as Porsche, have been working for several years on synthetic fuels (e-fuels), a promising alternative for reconciling driving pleasure and reducing emissions. Lamborghini and Bentley are also exploring this path, with the hope of prolonging the existence of thermal engines through carbon-neutral fuels.
However, Thomas Schäfer, CEO of Volkswagen, in 2022 described the internal combustion engine as “old technology” and the debates around e-fuels as “noise without meaning”. A position which today seems to be evolving in the face of market realities.
With this massive investment in thermal engines, Volkswagen is proving that the future of the automobile will require intelligent cohabitation between different technologies. Between electric and thermal, the German group is banking on complementarity to meet the varied expectations of drivers and meet the environmental challenges of tomorrow.
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