VW Is Shifting EV Investment Dollars to Fund Further ICE Development

Chris Teague
by Chris Teague

Volkswagen hasn’t given up on its electrification plans, but it plans to shift some of its EV-designated funds to continue developing gas engines. Company Chief Financial Officer Arno Antlitz said the automaker would spend around $65 billion to “keep our combustion cars competitive.”



The executive acknowledged that EVs are the future but also said that “the past is not over.” His announcement that VW would invest a third of its planned EV funds in ICE tech is a reversal of previous statements and the company’s stated goal to only sell EVs in Europe by 2033. It’s also a change from the automaker’s estimates last year, which pegged EVs at 80 percent of its overall sales by the end of the 2020s.

It's unclear what the change could mean for VW’s model line in the U.S., but it will likely bring more hybrids. The automaker’s ID electric vehicles have received a tepid welcome to the market, and it only currently sells the ID.4 here, so we could continue seeing gas engines in cars like the GTI alongside electrified models in the near term.


Antlitz’s announcement comes when several other automakers have delayed or retargeted EV investments as buyer demand grows slower than many expected. Ford, GM, and others have also backtracked on hybrids, committing to developing new models to satisfy buyers’ desires for more affordable fuel-efficient vehicles instead of expensive EVs.


Some VW-owned brands are watching sustainable fuels, with Porsche operating an e-fuel facility in South America. Bentley has delayed its 2030 goal to go EV-only by three years, and VW’s move shows that the combustion engine will live on longer than originally planned, even in EV-friendly Europe.



[Images: Volkswagen]


Become a TTAC insider. Get the latest news, features, TTAC takes, and everything else that gets to the truth about cars first by  subscribing to our newsletter.

Chris Teague
Chris Teague

Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.

More by Chris Teague

Comments
Join the conversation
4 of 35 comments
  • Luke42 Luke42 on Jun 08, 2024

    After my money-pit of a Jetta, the only VW vehicles I’ll ever consider are their EVs.

    • See 1 previous
    • EBFlex EBFlex on Jun 09, 2024

      "After my money-pit of a Jetta, the only VW vehicles I’ll ever consider are their EVs."

      So double foolish. Not only buying an EV but a VW EV.


  • Foo Foo on Jun 11, 2024

    Nah, I'll pass on VW, and their EVs in particular.

    My 6mt Golf Alltrack built in Mexico is good enough but VW has been stoopid since, glass cockpits, intrusive tracking, and the EV by 2030 pronouncement is just proof the WEF Elite learned nothing from Dieselgate, in re: c-suite wisdom, integrity or what Americans want. Like the California Bus, which you cant get in CA...😒

  • NotMyCircusNotMyMonkeys i was only here for torchinsky
  • Tane94 Workhorse probably will be added to the heap of failed EV companies.
  • Freddie Instead of taking the day off, how about an article on the connection between Black Americans and the auto industry and car culture? Having done zero research, two topics pop into my head: Chrysler designer/executive Ralph Gilles, and the famous (infamous?) "Green Book".
  • Tane94 Either Elio Motors or Aptera Motors.
  • Billccm I think we will see history repeat itself. The French acquired AMC in the 1980s, discovered they couldn't make easy money, sold AMC off to Chrysler. Jeep is all that remained. This time the French acquired FCA, and they are discovering no easy profits. Assume an Asian manufacturer will acquire what remains of Chrysler, but this time Jeep and RAM are the only survivors.
Next