VW Group CEO officially backs EU’s electric mobility agenda

In an interview with the German newspaper Der Welt, Volkswagen Group CEO Oliver Blume has strongly supported the European Union’s planned ban on combustion engines by 2035. Blume affirmed that electric mobility is the clear path forward for the automotive industry and emphasized a niche role for e-fuels.

In the interview, Blume aligned himself with the EU Commission’s vision for decarbonizing mobility. The CEO praised the EU’s commitment and advocated for including alternative technologies like e-fuels. “I think it’s right that the EU is sticking to electric mobility in 2035 but including other technologies,” he stated.

Niche products

Blume joins his colleague at BMW, CEO Oliver Zipse, in advocating synthetic fuels. However, the latter has taken a more skeptical stance toward EU officials’ strategy for e-fuels—or rather, the lack of a decent strategy.

“There are currently many indications that the EU Commission is striving for a bogus solution in which the ban on combustion engines is relaxed simply by ostensibly opening up to e-fuels,” he warned. According to Zipse, the EU is rushing the switch to electric mobility but shouldn’t rule out combustion engines so fast and provide a framework for sufficient production of fuels.

While synthetic fuels can contribute to immediate climate protection, particularly in existing vehicle fleets, Blume made it clear that their widespread use is not feasible due to limited availability.

“The available quantities of synthetic fuels alone rule out their use in a wide range of vehicles,” he explained. Blume, therefore, sees potential in e-fuels for specific applications, such as niche products like the Porsche 911, where sheer driving pleasure, performance, and the boxer engine can align with carbon neutrality. Blume is also CEO at Porsche.

High hurdles

However, Blume believes the overarching trend remains firmly toward electric vehicles (EVs). He stressed the importance of binding legislation to support the automotive industry’s transition to electric mobility.

He highlighted the long product cycles in the industry and the need for regulatory certainty to enable effective planning and investment. He also pointed out the economic pressures faced by automotive suppliers like ZF Friedrichshafen, Bosch, and Continental, suggesting that a more aggressive ramp-up of EV production could alleviate some of these challenges.

“We will fight to increase the proportion of electric vehicles,” he added, describing the new CO2 limits from the European Union, with punitive fees if not met, as a “high hurdle” for 2025.

Still optimistic

However, Blume remains optimistic about the future, anticipating that by 2026, the VW Group will have more electric vehicles on the market, including affordable models from VW, Skoda, and Cupra, priced around €25,000. The company committed $5 billion to electric carmaker Rivian for a joint venture into EV architecture and software.

Still, Volkswagen isn’t abandoning ICE models as quickly as initially planned. Finance and Operation Chief Arno Antlitz told Automotive News last month that “the future is electric, but the past is not over.”

In response to the cooldown of EV sales, the company reinvests in plug-in hybrid technology and still allocates one-third of its R&D budget to combustion engines. Moreover, many of the EVs planned by Blume’s predecessor, Herbert Diess, have been shelved due to the demanding marketplace. While the end game might be electric, according to the current CEO, the industrial rush isn’t happening at the earlier anticipated breakneck speed.