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“Electric cars are the future, but the past is not over yet,” said Arno Antlitz, according to the CFO of Volkswagen!
Despite the pressure from the electric car market, Volkswagen is betting on a hybrid future, maintaining significant investments in combustion engines. In a move that follows the line of other major automakers, such as Toyota, Subaru, Honda, Mercedes-Benz, Renault, and Geely, Volkswagen announced that it will not abandon combustion engines. Although electrification remains a priority, the German brand sees room for improving these propellers and keeping them competitive in the market, according to autopapo.
Combustion and Electrification: Two Investment Fronts
Volkswagen reaffirms its commitment to combustion engines, even in a transition period to electric vehicles. According to Volkswagen’s CFO, Arno Antlitz, two-thirds of the company’s budget will be allocated to electrifying the fleet, while the remaining third will be invested in keeping combustion cars competitive. “Electric cars are the future, but the past is not over yet,” Antlitz said in an interview with Automotive News Europe.
This decision comes after a series of challenges faced by Volkswagen with electric vehicles in Europe, where intense competition and reduced government incentives have hindered sales. To overcome these obstacles, Volkswagen is developing new, more efficient platforms and has formed a strategic partnership with Chinese Xpeng.
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Hybrids and Plug-in: The Best of Both Worlds
Volkswagen will not only continue to invest in combustion engines, but it also promises to expand its range of hybrid models, both traditional and plug-in. This hybrid strategy aims to offer consumers the flexibility to choose between fossil fuels and electric energy, depending on their needs and convenience.
Ironically, Volkswagen’s CEO, Thomas Schäfer, had described combustion engines as “obsolete technology” in 2023. However, the company is now allocating €60 billion (approximately R$ 342 billion) to this same technology. This significant investment reflects Volkswagen’s confidence that there is still much potential to explore in combustion engines.
Prospects for the Brazilian Market with Combustion Engines
In Brazil, Volkswagen confirmed the local production of flex hybrid models in the short term and plans to launch an electric model in 2027 or 2028. The automaker plans to introduce eTSI engines with light 48-volt systems, thus maintaining the relevance of combustion engines in the Brazilian market. Currently, Volkswagen does not sell electric cars in Brazil, offering only the ID.4 and ID.Buzz models through subscription services, which are quite expensive.
Perhaps this lag behind Europe is one reason why Volkswagen Brazil is showing good sales while the parent company faces challenges in the European market. As a result, the company continues to see value in maintaining a diverse offering that includes both electric cars and combustion engines.
Strategy
Volkswagen’s strategy of investing in combustion engines while advancing electrification reflects a balanced and pragmatic approach. By recognizing the importance of both technologies, the German automaker is positioning itself to meet the diverse demands of global consumers. For those paying attention to automotive industry trends, this combination of tradition and innovation promises to keep Volkswagen at the forefront of the industry.
If you are curious about the future of combustion engines and electric cars, stay tuned for Volkswagen’s next moves. After all, the automaker is determined to continue evolving on both fronts, ensuring that no technology is left behind.
Nada se muda Bruscamente, existe algo chamado transição para aquilo que se deseja, com isto, vai se aperfeiçoando, e os postos e redes credenciadas tem o seu tempo necessário para se preparar.