Volkswagen has confirmed it will ultimately end production of its internal combustion engines. The proclamation comes amid the company’s vast investment into battery-electric vehicles. It also backs off a previous announcement drawing a line in the sand when it comes to internal combustion engines.
Volkswagen CEO Ralf Brandstaetter told Automotive News Europe the automaker has no plans to develop any new internal combustion engines. Given the sizable investments the company is making into electrification, this news comes as little surprise. Brandstaetter’s remarks also echo comments made last week by Audi’s CEO, also confirming the luxury brand will ultimately end internal combustion engine production.
While Volkswagen isn’t planning any new gas engines, it will continue to invest in its current ones. The company still has to successfully transition to EV’s, which will require continued cash flow that is brought in by internal combustion engine models.
Brandstaetter’s remarks actually dial back a 2018 announcement that company would cease internal combustion engine production in 2026. Now the company says it will end production when consumer demand dries up for gas and diesel engines. This strategy seems a little more realistic than drawing an arbitrary line in the sand so far in advance.
Earlier this month Volkswagen detailed its corporate strategy surrounding EV’s. The plans call for the company to have a staggering 70 percent EV market share in Europe by 2030. They have a slightly more modest goal of 50 percent EV market share in the U.S. and China by the same time period. This aggressive goal underscores the level of investment the German automaker is making into EV technology.