Volkswagen (VW) and Audi are considering extending the production of some combustion engine models beyond the previously set 2033 phase-out date in Europe, as the electric vehicle (EV) market develops more slowly than anticipated, German newspaper Handelsblatt reported on Wednesday, citing company insiders.
A final decision on the extended availability of internal combustion engine (ICE) models is expected at VW’s upcoming investment planning round in early March, according to the report. The Volkswagen brand is reviewing the possibility of additional facelifts for best-selling models such as the Golf, T-Roc, and Tiguan, while Audi is assessing a longer production cycle for the A3.
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The sources indicated that some ICE models could remain available in Europe until 2035, aligning with the EU’s scheduled ban on new combustion vehicle sales. However, Handelsblatt reported that “should the end of the combustion engine in Europe […] be postponed once again, it would also be conceivable to extend this period.”
The shift in strategy comes as VW and Audi reassess their EV targets amid weaker-than-expected market growth. “The self-imposed targets are no longer realistic,” Handelsblatt quoted sources within the group as saying. Both companies are reportedly awaiting further guidance from EU policymakers regarding CO2 fleet regulations and potential flexibility in emission reduction targets.
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Volkswagen had previously committed to transitioning to an all-electric lineup in Europe by 2033, with former brand chief Thomas Schäfer stating in 2022 that the company aimed to phase out combustion vehicles “between 2033 and 2035.” Audi had set an even earlier target, announcing more than three years ago its plan to phase out combustion engine production by 2033, though it left open the possibility of continued sales in China.