AUTONEWS

Volkswagen and Audi team up to save the combustion engine in Europe

Volkswagen saw its electric car sales fall by 2.7% in 2024, while Audi suffered an even greater fall, with a 7.8% decline. Overall, demand for the VW Group's zero-emission models shrank by 3.4% last year, making it clear that the transition to an all-electric lineup will be anything but smooth.

Now, a new report indicates that the two brands are doubling down on combustion engines, investing more money to extend the life cycle of combustion engines. Internal sources cited by the German newspaper Handelsblatt claim that VW and Audi intend to postpone their electrification goals in Europe. The former had promised to be 100% electric on the continent by 2033, but that plan appears to have already gone through the roof. Audi, for its part, wanted to eliminate combustion engines globally by the same date, but has already shown signs that it is “flexible”, according to its CEO, Gernot Döllner. VW is also hesitant. 

Technical development chief Kai Grünitz has not ruled out keeping the Golf Mk8 on the market until the middle of the next decade, meaning the electric Mk9 could coexist with it for years. In March, the VW Group will decide whether to invest more money in combustion engines, which would also affect cars from Skoda and SEAT/Cupra. But if the European Union sticks to its plan to ban new combustion cars from 2035, the carmaker will have no choice but to comply. Porsche is also another car that has felt the market resistance. 

In 2024, sales of the Taycan plummeted 49%, while the new Macan generated more than 18,000 units. As a result, the German brand is now planning to reintroduce combustion engines in models initially designed as electric. Bentley and Lamborghini have followed suit, postponing electric launches and reaffirming their commitment to traditional engines. Bugatti, which is majority-owned by Rimac (55%), has ruled out an electric successor to the Chiron this decade. The VW Group wanted an electric hypercar, but the new management shelved the idea.

It is worth remembering that the European Union will not ban all combustion engines from 2035. The rule requires zero harmful emissions, leaving room for synthetic fuels and hydrogen. However, it is naive to think that these alternatives will replace gasoline on a large scale in the next 10 years.

If the adoption of electric vehicles does not accelerate, automakers should pressure the European bloc's leadership to postpone the bans. In 2024, the market share of electric vehicles there fell 1%, to 13.6%, not very encouraging numbers.

What happens in Europe will have a global impact, since most of the industry giants are based on the continent. And, apparently, even they are beginning to doubt the 100% electric future.

Mundoquatrorodas