Volkswagen sets deadline for combustion engines

Volkswagen has confirmed it will align with looming European legislation with plans to cull all new petrol and diesel combustion-engined cars in Europe by 2035.

However, the flow-on effect for Australia is likely to be drawn out.

Citing quotes given by Volkswagen sales chief Klaus Zellmer to a German newspaper, Automotive News Europe reports that the car-making giant will cease production of all combustion-engined cars in Europe by 2035 as it shifts to full-electric vehicles such as the Volkswagen ID.4 and ID.3.

It follows news last week that Volkswagen’s sister company Audi will introduce its final vehicle with an internal combustion engine in 2026, ahead of the last petrol and diesel cars rolling off the production line in 2032.

Other companies such as Volvo, Jaguar and Ford of Europe have likewise committed to a similar deadline.

The emphasis on Europe is due to looming Euro 7 emissions regulations that will force manufacturers to speed up development of electrified vehicle technology or face harsh penalties for exceeding CO2 limits.

However, Zellmer said Volkswagen would continue manufacturing cars with traditional combustion engines for markets outside Europe, including the US and China.

“In Europe, we will exit the business with internal combustion vehicles between 2033 and 2035, in the United States and China somewhat later,” Zellmer told the Muenchner Merkur newspaper.

“In South America and Africa, it will take a good deal longer due to the fact that the political and infrastructure framework conditions are still missing.”

Although Zellmer’s sentiments do not extend specifically to the Australian market, Volkswagen officials here say under current legislative framework there will not be the same hard deadline for phasing out ICE vehicles.

Australia is yet to mandate CO2 emissions targets that would turbocharge sales of EVs or low-emissions technologies.

EV incentives are not in place at a national level, however the federal government recently announced plans to improve fuel quality which will encourage new-generation powertrains.

There are also schemes in place at individual state and territory level, most recently in New South Wales and Victoria.

“Despite the example set by the New South Wales government’s well-reasoned and progressive EV strategy, the national framework does not yet exist for Australia to be prioritised in the global EV rollout,” said Volkswagen Australia corporate communications general manager Paul Pottinger.

“Then there are bizarre missteps such the Victorian government’s cash grab that actively discriminates against owners of plug-in hybrids while letting off 1990s hybrids that run on high-sulphur petrol."

“Current conditions are not conducive to providing Australians a choice between EVs and conventional vehicles, a choice increasingly available in Europe and North America.”

Volkswagen revealed its new ‘Accelerate’ strategy in March, which outlined plans for 70 per cent of European sales to be all-electric by 2030.

Zellmer told the German newspaper that this should theoretically allow VW’s fleet to be CO2-neutral by 2050.

The European Union will introduce a stricter 60 per cent reduction in CO2 emissions in 2030, before a full 100 per cent target is applied in 2035.

According to Automotive News Europe, it will be virtually impossible to sell traditional petrol and diesel engines in Europe thereafter.