VW CEO: Car makers need 'a little more time' to hit unrealistic EV targets

Legislation that effectively outlaws the sale of new combustion cars from 2035 “really needs to be looked at” as car makers “need a little more time” to be able to reach the EV registration targets governments have set, the boss of Volkswagen has said. Current laws state that from January 2035 100% of new cars sold in the UK and 90% in the European Union must be fully electric. However, as the current mix of EVs sold so far this year is 22% in the UK and 20% in Europe, Volkswagen CEO Thomas Schäfer says that current targets are unrealistic. “I think, realistically, we need a little bit more time,” he told a select group of reporters, including Autocar. “It [hitting the targets] will come. It's not going to be 2060 or something, it's probably something like 2040 or something like that. But 2035, this is nine years from now – to get the infrastructure up to that level of 100% electrification is [unrealistic]. This really needs to be looked at - to have a little bit more flexibility.” Schäfer said that there are “good discussions progressing” between Volkswagen and other car manufacturers with lawmakers over the issue – but he didn’t go as far as to suggest any potential resolutions. Such is the financial cost of legislative compliance that rival maker Stellantis said it is unable to make a profit in the UK from selling EVs, because of the need to artificially boost demand in order to hit mandated sales targets. Its European chief Emanuele Cappellano even warned that the firm may be forced to slim operations in the UK if the laws aren’t relaxed. “There's still a bit of a disconnect between what the broader public and the people want and what the rules prescribe,” said Schäfer. “It definitely needs to be talked about. You're pushing against the market in Europe.” Any mandate change must be substantial, as Schäfer explained that while the European Union has amended its laws to allow for 10% of new cars sold to be combustion-powered, these are “definitely not volume cars” because the cost to keep them on sale and up to date will be too high. He said: “This really means there will be probably a couple of sports cars, like [Porsche] 911s or Lamborghinis or whatever, but definitely not volume cars, because when it swings into electrification, the remaining combustion engine volume will be so small, and eventually inefficient, that it will make no sense to carry out [the sale of them].” He added that lawmakers’ next steps are “very critical”, saying that if governments push too hard on these EV targets, “will people then switch to the other offer [of an EV], or will they just not buy a car? That's the little bit of the debate we are having.” Looking forward, Schäfer said that he wanted to see a European car industry that does “not burden everybody with new rules and new laws” and fights to keep the continent competitive. “Sometimes you wonder why certain rules have been invented,” he said. “You keep on having to argue this, and this is sort of little bit sad. We’ve got to keep the industry competitive, and that’s the main goal.”

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VW CEO: Car makers need 'a little more time' to hit unrealistic EV targets

Under current laws 100% of new cars sold in the UK and 90% in the EU must be fully electric from 2035

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VW CEO: Car makers need 'a little more time' to hit unrealistic EV targets

Under current laws 100% of new cars sold in the UK and 90% in the EU must be fully electric from 2035

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