According to reports, Volkswagen has given up its plan to go all out on developing electric vehicles.
Volkswagen\’s eponymous brand had positioned its ID range of electric vehicles as central to its future, but the brand acknowledged last week that it would need more plug-in hybrids as EV sales slow.
This is just the latest adjustment Volkswagen has made to its electrification strategy.
Previously, the company released several models and lagged behind in the Chinese market.
In China, local brands currently dominate.
Volkswagen has also shelved efforts to seek outside investors for its battery unit and scrapped plans for a 2 billion euro ($2.2 billion) electric car factory in Germany.
In fact, the automaker sells so many internal-combustion vehicles that emissions will exceed limits next year, forcing CEO Oliver Blume to ask European regulators for leniency.
That\’s a dramatic shift from three years ago, when VW lobbied aggressively for electric vehicles in the European Union, causing a rift between the company and some of its peers in the region.
However, Volkswagen has not completely given up on electric vehicles.
Bloom is building partnerships with companies such as Xpeng Motors and is preparing to launch a new electric car brand in China, offering models equipped with in-car Avatar and other equipment to win back young consumers robbed by BYD and Tesla. By.
VW has also been in discussions with European peers such as Renault to develop cheaper electric vehicles to win over mass-market car buyers.
Volkswagen isn\’t the only company having to recalibrate its strategy as sales of electric cars slow.
Countries including Germany and Sweden have stopped or cut subsidies for electric vehicles because electric vehicles tend to be more expensive than gas-powered vehicles. This has hurt the entire industry.
Gaps in the public charging network also continue to deter potential buyers.
Strantis said on Tuesday it would sell cars co-developed with Chinese partners in Europe from September to reduce the cost of its electric vehicles.
Mercedes-Benz Group has halted development of infrastructure for a new luxury electric sedan to save money and plans to sell gasoline cars for longer than expected.
BMWYY> BMW AG warned this week that the European Union\’s plan to effectively ban the sale of new internal combustion engine cars by 2035 would harm the industry.
European regulators will review the policy in 2026.
Volkswagen abandons all-electric plan
Volkswagen has reportedly abandoned plans to go all-in on electric cars
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