Volkswagen is investing billions in luxury combustion engines – electric boom in danger!

Volkswagen is investing billions in luxury combustion engines – electric boom in danger!

Despite an increasingly electrified vehicle range, Volkswagen is planning targeted investments in luxury combustion engines. The focus is particularly on prominent models such as the Bentley Bentayga and the Lamborghini Temerario, which are to be technologically upgraded. This decision is a direct result of weak demand for electric cars in the luxury segment, where many customers continue to prefer combustion engines, reports Mercury.

The luxury combustion engines play a central role in Volkswagen's profit portfolio. The company is planning a new platform, codenamed “Nova,” designed for large sedans, SUVs and sports cars and will support both internal combustion engines and plug-in hybrids. This platform should impress with less technical confusion, less weight and lower costs.

Strategic investments

To meet technological challenges, Volkswagen is investing over five billion dollars in the US manufacturer Rivian. The aim of these investments is to fix software problems that could jeopardize the company's competitiveness. In addition, Volkswagen plans to increase its stake in Rivian and is transferring another billion US dollars for this purpose. The exact change in the existing shareholding of currently 8.6 percent remains unclear.

At the same time, Volkswagen is examining collaborations with the US software company Applied Intuition. Alternatively, the company could continue to use the existing Audi and Porsche platform. However, this option is viewed critically as it could affect the competitiveness of the new models.

Future of mobility

Volkswagen is pursuing a comprehensive strategy that invests in the areas of electromobility and high-priced combustion engines as long as demand for these luxurious vehicles continues. This shows the company's desire to react flexibly to changes in the market and to expand on existing strengths. The planned measures illustrate the balancing act between the electromobility offensive and loyalty to the tradition of combustion engines in the luxury segment. Further details on these investments and strategic directions can be found at Mirror.