South Korean media: German Volkswagen to invest 60 billion euros to revitalize internal combustion engine vehicles!
On June 12, South Korean media "Global Economy" published an article stating that in the face of the EU's decision to ban the sale of all gasoline and diesel vehicles starting in 2035, the largest German automobile company, Volkswagen Group, announced an unprecedented project to invest approximately 60 billion euros to revitalize internal combustion engine vehicles, attracting attention. This is considered a large-scale investment in response to the global trend of electric vehicles.
Arun Antleitz, CFO and COO of the Volkswagen Group, said, "The company plans to invest around 60 billion euros to continue producing internal combustion engine vehicles." Explaining the background of the investment, he stated, "The future is electric vehicles, but the past is not over yet."
This decision has been interpreted as a strategic move to directly confront the EU's policy banning the sale of internal combustion engine vehicles by 2035. Industry analysts claim that this move is Volkswagen's "time-buying" strategy. The complex transition to electric vehicles will be a slow process while preserving millions of jobs and existing customers.
Although German automakers have had experience manufacturing electric vehicles over the past 50 years, they remain cautious about the current rapid push toward electric vehicle transformation. The relevant industry generally believes that intense competition with Chinese electric vehicle companies influenced this decision.
In the field of hydrogen-powered vehicles, unlike other competitors, Volkswagen has chosen to focus on maintaining existing internal combustion engine technology rather than developing new technologies.
Volkswagen's decision marks a significant shift in Germany's automotive industry strategy. Mercedes-Benz is reconsidering its electrification plan and stated that it will not advance full electric vehicle business before 2030 if market conditions do not allow. On the other hand, several hybrid and plug-in hybrid models are planned for release.
Despite the 2035 EU regulations, brands such as Bugatti, Lamborghini, Bentley, Ford, and Aston Martin are also investing in existing internal combustion engine technology. Analysts claim these brands are seeking differentiated strategies to counteract the rapid growth of Chinese companies in the electric vehicle market.
Germany's strategic focus is on ensuring technical flexibility. This is interpreted as maintaining the competitiveness of existing internal combustion engine technology amid the incomplete maturity of electric and hydrogen fuel cell vehicle technologies to adapt to market changes.
Meanwhile, both within and outside the industry, attention is being paid to how this decision by German automakers aligns with the EU's strengthened climate regulations. With global efforts to reduce carbon emissions accelerating, there are assessments suggesting it is necessary to verify whether a large-scale investment in internal combustion engine technology is a sustainable strategy.
Original article: https://www.toutiao.com/article/1834689904160780/
Disclaimer: The article solely represents the author's views.