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Even VW chief Blume backtracks: the 2035 phase-out of internal combustion engines is unrealistic.
VW Group CEO Oliver Blume doubts the EU's planned ban on internal-combustion engines.
"From today's perspective, the target set for 2035 is unrealistic. And therefore we need more flexibility there," Blume said in a video interview with the German Press Agency.
One must look at what can be achieved, detached from ideologies. Achieving the climate targets is a fundamental obligation, Blume said, who also heads the sports-car maker Porsche. The period from 2035 onward must be extended—also in terms of technological openness. Everything that contributes to decarbonization should be usable for that. In recent times, proposals have come from the industry, for example to exempt plug-in hybrids and vehicles with range extenders from the ban. In the latter, a small internal-combustion engine increases the range of electric cars.
There was backing from Chancellor Friedrich Merz.
"There must not be a hard cut in 2035," he said in Berlin.
That is not technically possible. The CDU politician had previously invited to a 'Car Summit' with industry representatives, unions and several federal states to discuss better conditions for the ailing German key industry.
Blume: "We also need attractive funding frameworks"
Blume also emphasized: "We clearly see electric mobility as the technology of the future."
One must make every effort so that it succeeds. For that, attractive cars are important. That is our responsibility," said Blume. The top manager also held politics to account: It must create attractive framework conditions for customers. Blume called for, in addition to a better charging infrastructure—both in cities and in rural areas—cheaper electricity prices.
We also need attractive funding frameworks, such as intelligent tax models that would also boost the incentive for such a purchase of the electric vehicle," said Blume, without giving details.
According to dpa information, Volkswagen proposed at the Chancellery a tax premium that would reduce the income tax of electric-car customers. Previously, the black-red coalition had already agreed on a new subsidy program. In particular, households with low and middle incomes are to be supported in transitioning to emission-free cars. The modalities are still unknown.
Phasing out combustion engines is expected to reduce emissions
In 2022, the EU decided that new cars from 2035 onwards must not emit climate-damaging carbon dioxide (CO2) anymore during operation. The decision, also referred to as the phase-out of combustion engines, would mean that new cars with internal combustion engines could no longer be registered. The aim is to reduce emissions in the transport sector. Back then, it was still expected that electric cars would have considerably higher sales. The European Commission had announced in March that it intended to review the target within this year.
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