Volkswagen will introduce the last of its vehicles powered by internal combustion engines in 2026.
Still battling to recover from a 2015 scandal over diesel emissions test cheating, the German automaker has been cutting costs to fund an ambitious shift to electric cars and automated driving.
VW expects the era of the combustion vehicle to fade away after it rolls out its next-generation gasoline and diesel cars beginning in 2026.
Speaking at an industry conference near VAG's headquarters in Wolfsburg, VW's strategy chief Michael Jost, revealed his "colleagues are working on the last platform for vehicles that aren't Carbon dioxide neutral".
The e-Golf and the e-Up are on sale in Europe in the first of Volkswagen's battery electric cars like the new Neo hatchback will also enter production in Germany and will be followed by more such models from the I.D line assembly at two sites in China from 2020. This means that the last internal combustion vehicle will be sold around the year 2040.
Volkswagen's core brand aims to raise its profit margin faster than previously planned despite rising investments in the development of electric vehicles, the carmaker said on Thursday.
The automaker's plan is tied not only to its own electrification strategy, but to the climate goals of 2050, which Jost indicated could only be achieved if not a single internal combustion auto is on the road in that year. VW plans to launch fully or partly electric versions across its lineup of more than 300 cars, vans, trucks and motorbikes by 2030.
Volkswagen has also confirmed that it will streamline its model range and increase vehicle costs to improve profitability.
'They're only words for now, but it's a bit like Saudi Arabia predicting the end of the oil age.