VW Will Invest More In PHEVs As It Reconsiders Its EV Plans

We’ve been here recently before, several times in fact, as car manufacturers from Ford to Bentley delay or turn back on plans for their ranges to go all-electric as demand for full EVs experiences a slowdown. The latest company to do so, however, comes as something of a surprise: Volkswagen.

VW was one of the very first major manufacturers to make noises about going all in on EVs, especially in the wake of the Dieselgate emissions cheating scandal, the after-effects of which the company and the people involved are still experiencing to this day.

The electrification strategy was pushed hard by Herbert Diess, who was Volkswagen's CEO between 2018 and 2022, overseeing the launch of the first of the company’s ID.-series EVs. In 2021, the company announced its intention to transition to only building electric cars in Europe between 2033 and 2035. In 2022, that date was narrowed down specifically to 2033 by Diess’ successor, Thomas Schaefer.

Now, though, it looks like VW is reconsidering. It hasn’t officially walked back that 2033 deadline for full electrification in Europe but, speaking to Bloomberg, Schaefer said that buyers “want plug-in hybrids now, including in China and the US.” As a result, the company says it’ll now expand its range of plug-in hybrids going forward to meet this greater demand.

Last year, VW also scrapped its plans for a bespoke £1.7 billion factory to build EVs in its hometown of Wolfsburg, although it’s apparently still pushing ahead with plans to build battery plants in Spain and Canada.

Indeed, VW still seems generally committed to electric vehicles but is likely taking a similar approach to Ford – whose upcoming Explorer uses a VW EV platform – and staying more open to being guided by the market.

It’s a slightly surprising move from a company that put everything on EVs earlier than most, but it's ultimately a business decision. While electric cars definitely aren’t going anywhere, it’s increasingly clear that for manufacturers to go electric-only, the demand needs to exist, and right now, it doesn’t seem to.