VW Will Spend Billions of Its EV Development Budget on Gas Engines

In a surprising move amidst the electric vehicle (EV) push, Volkswagen has announced that it will allocate $65 billion, or one-third of its previously designated EV development budget, to continue improving gasoline engines. This decision was publicized at a Reuters event in Munich where Arno Antlitz, Chief Financial Officer and Chief Operating Officer at Volkswagen Group.

Volkswagen had earmarked $196 billion for next-generation EVs in 2023. However, faced with industry-wide shifts and market hesitations about fully transitioning away from conventional engines, Volkswagen revised its plans. They now assert that gasoline-powered vehicles will persist alongside their electric counterparts in Volkswagen’s portfolio through the foreseeable future. According to Antlitz, "the future is electric, but the past is not over."

It's a significant departure from the previous plan, announced in late 2022, to build and sell only electric cars in Europe starting in 2033.

The automotive industry currently grapples with increasing regulatory demands regarding emissions which has necessitated advancements in cleaner gas engine technologies. The competitive pressure from China's robust electric surge also plays a critical role as global automakers reassess their electrification timelines and strategies.

Source: Automotive News Europe