As environmental regulations tighten globally, the automotive industry faces critical decisions between internal combustion engine (ICE) vehicles and electric vehicles (EVs). While many countries are pushing for greater electrification and phasing out ICE vehicles, some automakers like BMW and Toyota have announced their intentions to continue producing ICE vehicles.
BMW CEO Oliver Zipse recently stated at a press conference in New York that “considering both electric vehicle development and fuel-efficient ICE vehicles is a rational approach when balancing profitability and environmental concerns.” He criticized Europe’s policy to ban the sale of ICE vehicles after 2035, arguing that “given the significant lack of consumer purchasing power and related infrastructure, a more measured pace is needed,” warning of the risks associated with rapid electrification.
The EU Commission has decided to effectively ban the sale of ICE vehicles in Europe starting in 2035. In response, Volkswagen plans to convert half of its new car sales to electric vehicles by 2030, and General Motors (GM) aims to make all of its vehicles electric by 2035. Many global automakers, including Jaguar and Volvo, also plan to cease ICE vehicle production between 2030 and 2040.
However, BMW has yet to announce a complete electrification plan. CEO Zipse expressed significant concern over the growing dependency on China for raw materials and batteries. Indeed, many manufacturers, including Mercedes-Benz and Tesla, source their batteries from China’s CATL, the world’s leading EV battery supplier.
Toyota is also committed to retaining ICE vehicles. While it announced a ¥4 trillion (approximately $40 billion) investment in EV development by 2030, it is simultaneously investing billions of yen in ICE development. Toyota plans to allocate this investment across various powertrains, including hybrids, plug-in hybrids (PHEVs), and fuel cell electric vehicles (FCEVs).
Ford has chosen to separate its electric and ICE operations. Ford Model E focuses on electric vehicle technology, while Ford Blue centers on producing ICE vehicles and reducing costs. Hyundai Motor Group plans to stop ICE production by 2045 but will pursue a dual-track strategy with hydrogen and electric vehicles.
Despite the challenges posed by the shift to electric vehicles, many global automakers are striving to balance profitability and environmental protection by continuing to develop both ICE vehicles and EVs.
The Re-evaluation of Internal Combustion Engines: A New Trend in the European Automotive Industry
Recently, the European automotive industry has been re-evaluating internal combustion engines (ICEs) and exploring new technological possibilities. This shift is particularly notable amid concerns that the transition to renewable clean energy technologies to meet energy transition goals may be slower than planned. Notably, key figures in the automotive manufacturing and fossil fuel energy sectors are increasingly supportive of ICE vehicles.
The International Vienna Motor Symposium (IWM), held annually at the Hofburg Conference Center in Vienna, Austria, took place from April 24-26 this year. Unlike previous years, the 45th IWM focused less on hybrid, electric (EV), and hydrogen vehicles and more on fossil fuel companies advocating their commitment to carbon-neutral energy solutions.
Fossil Fuel Companies’ Commitment
The event saw a consensus to set aside the debate over whether automotive fuels are clean energy or fossil fuels and instead cooperate to find realistic and practical solutions for reducing carbon dioxide emissions quickly. This was evident from the keynote speakers invited to the opening ceremony, including Michael Fleiss, Senior Executive at Aurobay Europe, Rebecca Yates, Vice President of British Petroleum (BP), and Karl Rose, former Chief Strategist at the Abu Dhabi National Oil Company (ADNOC).
Relaxation of Calls to Ban ICE Vehicles
The once stringent calls for a complete ban on ICE vehicles by environmental and EV sectors have softened. Leading automotive and component manufacturers in Europe have voiced concerns through the media about the feasibility of meeting the EU’s carbon neutrality targets by 2030 and 2050, advocating for a new concept of “technology openness.” This approach aims to embrace ICE vehicles and fossil fuel companies as technological partners to achieve the common goal of reducing global carbon dioxide emissions.
Aurobay’s Innovative Hybrid Powertrain
Aurobay, a joint venture between Sweden’s Volvo and its Chinese parent company Geely, announced plans to develop a compact hybrid fuel drive package that is compatible with both ICE engines and EVs. This innovative technology is expected to facilitate the transition of both ICE vehicles and EVs to gasoline engines and plug-in hybrid systems, enhancing EV adoption and usability in markets with limited EV charging infrastructure or unstable power grids. Renault and Saudi Arabia’s state-owned oil company Aramco are strategic investors in this project.
New Possibilities for ICE Vehicles
While the ultimate goal of phasing out fossil fuel-powered ICE vehicles remains unchanged, the European automotive industry is re-evaluating the technological advancements and potential contributions of ICE vehicles to carbon neutrality. The IWM highlighted that ICE vehicles are not merely relics of the past but could play an essential role in the new era of energy transition, showcasing the industry’s new direction.
Comments