Volkswagen Throws Electric Strategy "In the Trash"

Written by Camilla Jessen

Feb.17 - 2025 11:45 AM CET

Volkswagen rethinks its all-electric future, keeping petrol and diesel cars in the mix.

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Volkswagen appears to be rethinking its all-electric future, as insiders reveal that the plan to go fully electric by 2033 has been scrapped, according to German newspaper Handelsblatt.

VW Shifts Gears on Electric-Only Strategy

The German automaker had initially committed to producing only electric vehicles by 2033, but according to multiple sources, the company is now taking a more flexible approach.

Volkswagen and Audi are reportedly no longer strictly adhering to the original timeline, instead keeping options open for combustion engine models.

Volkswagen’s Chief Development Officer, Kai Grünitz, recently refused to rule out a prolonged lifespan for the Golf Mk. 8 as a petrol and diesel-powered car, even as the company prepares to launch the all-electric Golf Mk. 9 — a model being developed in collaboration with American EV startup Rivian.

In a further sign of a shift in strategy, Volkswagen had previously declared that the upcoming T-Roc would be its last combustion engine model, but new reports suggest the company may be considering additional petrol and diesel models beyond that.

Volkswagen’s revised stance on combustion engines comes amid rumors of a potential policy change within the European Union.

Last week, Der Spiegel reported that the EU Commission is exploring “possible flexibilities” regarding the planned 2035 ban on new petrol and diesel car sales.

If this regulation is softened, Volkswagen’s decision to extend combustion engine production could be part of a strategic move to adapt to a changing regulatory environment.

The final decision on Volkswagen’s combustion engine future is expected to be made in March, according to sources at Handelsblatt.

If confirmed, the move would signal a significant shift in strategy, suggesting that Volkswagen is not ready to fully abandon internal combustion engines just yet.