Another electric U-turn: German car giant scraps promise to end development of petrol engines

Daily Mail​

4 hours ago

A major German car firm has become the latest auto manufacturer to perform a dramatic U-turn on its electric vehicle commitments, writing off its promised to stop developing internal combustion engines (ICE) in 2033.
Instead, the Bavarian-based marque will continue to make both ICE cars and plug-in hybrids into the next decade, as part of a 'completely new' fuel-powered line-up.
Audi CEO Gernot Döllner confirmed the brand's revised plans, explaining that 'flexibility' is the new direction Audi will take so it can see how 'markets develop'.
The German car giant had originally planned to build its last ICE-only car next year with the new-generation Q7. However, it suggested earlier this year that petrol and diesel models could run for longer.
Audi is just the latest in a line of legacy car brands to backtrack on commitments to sell only fully electric cars from 2030, with Volvo, Porsche, and Fiat all announcing plans to extend sales of ICE and hybrid cars into the next decade.
It comes after the UK Government watered down its own ban on sales of new petrol and diesel cars in April, allowing manufacturers to continue selling hybrids – both conventional and plug-in – until 2035.
Döllner said in an interview with Autocar: 'Audi is launching from 2024 to 2026 a completely new line-up of internal combustion engine and plug-in hybrid vehicles, and that gives us complete flexibility for at least another seven, eight, maybe 10 years, and then we will see how our markets develop.
'We have already decided to extend the production beyond the communicated end dates of the past.'
The CEO, who took to the helm at Audi in September 2023, explained that the 2033 deadline was made by Audi's previous management and that a slowdown in EV adoption in key global markets has forced the car company to reassess its deadlines.
Last year, EVs accounted for less than 10 per cent of Audi's global sales, despite the fact it is one of the manufacturers to have broadened its range of battery-powered vehicles.
Döllner had already hinted in March that this year Audi would decide on a new timeline for phasing out ICE cars, and that the firm had invested substantially in new-generation hybrid technology.
Audi will lead development of all Volkswagen Group hardware and software architecture, basing its EV platforms on the US manufacturer Rivian's architecture through a joint venture.
This will be fed into future plans for other VW Group brands, including Porsche, Skoda, Bentley and others.
The first Audi models to use the architecture will arrive in late 2027 and 2028, Döllner confirmed.
The new Audi A5 plug-in hybrid will be revealed next week as one of 10 new PHEV models due in 2025. The A3, A6, Q5 and Q3 will also receive plug-in hybrid variants this year.
This is good news for British car buyers who are able to purchase hybrid and plug-in hybrid car until 2035 following Keir Starmer's decision to relax EV sales targets in April.
Being able to buy a hybrid into the middle of the next decade is aimed to provide motorists with a stepping stone before committing to fully electric driving.
Hybrids give drivers some zero emissions running but a petrol engine when long mileage journeys are called for.
Audi's other plans include discontinuing the A1 supermini and Q2 crossover – smaller models sold in global markets – and instead bringing in a standalone EV roughly the size of an A3 in 2026.
This is set to be the entry point for Audi's future range, taking the place of the Q1 and Q2.
Döllner also said that the German firm 'will not invest heavily in new diesel generations' as its current TDI models are compliant with the EU's Euro 7 emissions regulations, so these will continue to be brought to the market – a market which is currently declining.
Which manufacturers have abandoned EV-only deadlines?
Volvo backtracked on its promise to sell only fully electric cars by 2030 due to a fall in demand for battery vehicles in September 2024.
Instead, it's now aiming for 90 to 100 per cent of its global sales to be either pure electric or plug-in hybrid by the end of the decade.
Porsche, also owned by VW Group, has watered down its aims for 80 per cent of sales to be all-electric by 2030, moving to a plan that involves selling its existing Cayenne SUV with combustion engines into the next decade.
Mercedes-Benz is another German car giant that has announced it too will extend the production cycle of one of its biggest-selling combustion cars due to concerns about EV take-up.
The A-Class hatchback, which was due to be retired by the end of 2024, will continue to be built through to 2026 as part of a more 'flexible' Mercedes strategy for transitioning to EVs.