The Great Automotive U-Turn: Revving Up Investment in Internal Combustion Engines Once More.

Specifically, Mercedes-Benz plans to launch 19 new models featuring internal combustion engines by 2027. Additionally, the German automaker has confirmed the development of a new VAN platform powered by internal combustion engines, departing from their previous plan to transition to a fully electric VAN.EA platform by 2026.

Mercedes-Benz’s change in strategy is driven by their aim to restore profit margins after experiencing a 30% decline in revenue in 2024, with a 40% drop specifically in the passenger car segment. Their electric vehicle sales also took a hit, witnessing a 25% decrease in the same year.

Echoing Mercedes-Benz’s move, BMW has recently reaffirmed its commitment to internal combustion engines, vowing to stick with them “as long as regulations allow.” The company emphasized that its M models will continue to offer both electrified and pure gasoline versions in the future.

Porsche is also adjusting its business strategy after its electric vehicles fell short of expectations in the market. The company plans to continue introducing models with internal combustion engines, including a gasoline-powered variant of the Macan. The Panamera and Cayenne may also retain their V8 engines.

In mid-2024, McKinsey released survey results revealing that 46% of electric vehicle owners in the US intended to switch back to internal combustion engine vehicles, with a global average of 29%. The primary reasons cited for this shift were the inconveniences associated with charging and the limited range of electric vehicles for long-distance travel.

General Motors (GM) has invested over $500 million in its Arlington Assembly plant in Texas, bolstering its portfolio of internal combustion engine vehicles, particularly large SUVs. Prior to this, the company had also invested $1 billion in two manufacturing plants in Flint, Michigan. These moves signal GM’s continued belief in the future of internal combustion engines, alongside their development of electric vehicles.

Ford, facing lackluster financial results, has abandoned its plans for full electrification. They have halted production of the F-150 Lightning and canceled a project for a large electric SUV. Instead, Ford will continue to offer internal combustion engine vehicles in markets with high demand or lacking electric vehicle infrastructure, ensuring they meet customer needs and maintain profitability.

Japanese automakers Toyota, Mazda, and Subaru have also announced plans to continue investing in internal combustion engines while intensifying their research into carbon-neutral fuels. This approach allows them to comply with environmental regulations while catering to the diverse preferences of global consumers.

TH (Tuoitrethudo)