Volkswagen Group is about to drop gas and diesel engines like names at a swank party.
The automaker’s CEO has announced a multi-billion push to prepare the company for a much more stringent marketplace, part of which includes giving its internal combustion engine lineup a haircut.
Speaking at an auto industry conference in Vienna, Matthias Müller said the company needs to boost the efficiency of its engines by 10 to 15 percent to stay ahead of picky European and American regulators, Reuters reports. Reaching that goal carries a price tag of $11 billion, spread out over the next five years.
Up to 40 percent of the company’s engines won’t survive the operation, Müller claims.
“Even though modern combustion engines will be relevant for at least another 20 years, it is clear that the future will be ruled by electric drives,” Müller told the crowd.
To stay current in a climate of rapid change, VW plans to cover both sides of the aisle. While its engine lineup gets a technology boost, the automaker’s electric drivetrain efforts will see a tripling in investment — up to $9 billion between now and 2022. In addition to a range of EVs, VW plans to return to the hybrid game.
While the company’s hybrid efforts never saw much success in the U.S. (the slow-selling Jetta Hybrid was unceremoniously killed off last year), Müller promises numerous hybrids based on the company’s emerging technology.
“What’s at stake is to develop a future-proof drives portfolio as a basis for transforming the core autos business,” he said.
Müller didn’t elaborate on his engine promise, only saying that the 40-percent reduction would come from mass-market models. Late last year, a source inside VW Group’s Audi division claimed the company had stopped development of any new V8 engines. Certainly, the fallout from the diesel emissions scandal will see VW pare down its oil-burning offerings. More consolidation will likely come from the small four-cylinder gas engines offered in its Seat and Skoda brands.
Because VW needs its 3.6-liter V6 to power big-profit utility vehicles, expect that mill — or a similar (but leaner) successor — to carry the gasoline torch into the future.
[Image: Volkswagen]
Perhaps Dieselgate will be to VW what Pearl Harbor was to the United States, and they will emerge stronger and better in a few years.
Or maybe their arrogance will continue to drag them down.
As a former Mitarbeiter of a large aktiengesellschaft of der vaterland, I’m betting on continued or increased arrogance.
@SCE to AUX
Making a fair bit of profit this year. Now a three tier race between Toyota, new player, Renault- Nissan- Mitsubishi and VW Corp for No1
Well VW made a profit.
But they all their factories burned dowm! They made a profit.
But they said they want to reanimate Hitler! They made a profit.
Every executive was sentenced to life in prison! They made a profit.
They killed 14 old ladies for sport! They’re number 1 and made a profit.
Amazing how a making a profit melts away any negativity or issues.
Talking about US Corporations in general? Or CEO’s who collect fat retainers when they really fail to meet target markets.
Agree!
New engines…. GREAT …..quality will go down for the first 5 years
Other than the glorious VR6, VW’s answer to the church of the 3800
“Because VW needs its 3.6-liter V6 to power big-profit utility vehicles, expect that mill — or a similar (but leaner) successor — to carry the gasoline torch into the future.”
Go back to the 3.2l vr6 and add a turbo
@Steph Willems
I find your posts are the most widely inaccurate of the Editorials on TTAC
Cannot fathom why you mean by this
“Because VW needs its 3.6-liter V6 to power big-profit utility vehicles, expect that mill — or a similar (but leaner) successor — to carry the gasoline torch into the future.”
Gas engined Utility Vehicles? what 3.6 V6 Gas Engine? Are you sure you know what the VW engine line up is?
The 3.6L VR6 (which is a V6, just a narrow angled one) is currently offered in the new Atlas, Passat, Touareg, Audi A3, TT, Q7 and the Porsche Cayenne, at least in the North American versions of those vehicles.
Specifically, the Cayenne and its Q7 platform mate might be the most profitable vehicles VAG sells in North America.
What part of his assertion do you find to be inaccurate?
@newenthusiast
Outside NA Diesels predominate. Steph Willems ” Utility Vehicles” has a different meaning , basically Commercial Vans etc. SUV’s are a specific type of vehicle. On the pay Financial Times website. More was added to what Muller said to give it more perspective
He said that Petrol / Diesel engines will be the most common engines making 80% of sales by 2025. VW would be spending €9 Billion on EV’s and Battery Tech
Again, I’ll ask: why do you expect a website based in North America, catering to North American readers, offering perspective on news and how it will affect those readers to have any concern about how other markets define ‘utility vehicles’, given that the target audience doesn’t live in or purchase vehicles in those markets?
Do those markets care about our designations of vehicle classes? If so, why? In what way does it affect them?
@newenthusiast
Expected this to the reply. Muller was not talking about NA, as it makes only 4 % if that of VW sales. He was talking about VW in Global terms.
The whole article Steph Willems, has taken info from is an address by Mueller as he sees VW Corp will be heading in the near future up to 2025
Well the bulk of the ” target market”a Global one do make the distinction. It may not resonant in NA but it does outside and for Mueller that is vastly more important for VW.
No non NA markets have very little interest in US classifications.
“The whole article Steph Willems, has taken info from is an address by Mueller as he sees VW Corp will be heading in the near future up to 2025
Well the bulk of the ” target market”a Global one do make the distinction. It may not resonant in NA but it does outside and for Mueller that is vastly more important for VW.”
I’m talking about the target market of TTAC, which would be why Mr. Willems referenced the 3.6L VR6 and its place as an option in most CUV/SUVs in VAG’s N. American portfolio.
That’s what the entire sentence we’re discussing is about: VW is unlikely to drop the VR6 for an I4 in the utility category in North America because its profitable, and they need it to remains so. They MAY do a smaller version of it. You seem to be implying that Willems was commenting on their global lineup, which is absurd and out of context for this website. I’ve been here a very short time, but you seem to have an issue extrapolating this basic fact about TTAC’s reporting….its generally not relevant outside of the member countries involved in NAFTA.
“SUV’s are a specific type of vehicle. ”
Yeah, isn’t it a Sport UTILITY Vehicle? Wow, who’d a thunk it?
@newenthusiast
“You seem to be implying that Willems was commenting on their global lineup, which is absurd and out of context for this website.”
Not implying , that is what Mueller said. He did not mention NA at all.
Steph Willems is drawing his own conclusions as regards NA..
What VW NA does is up to them. I guess you will have to wait to see what they introduce.
SUV is not a utility vehicle in VW / European terminology.
SUV = football (soccer) moms.
Utility vehicle = plumbers et. al.
He forgot to say VW is good, VW is great. And they made a profit.
You could have added Ford had a dramatic loss in Profit
“SUV is not a utility vehicle in VW / European terminology.
SUV = football (soccer) moms.
Utility vehicle = plumbers et. al.”
Good thing that the author, this website, and its targeted audience are not based in Europe. Otherwise that comment might actually be a valid criticism.
As its stands, you cannot ignore that context, and then claim that he is inaccurate or ignorant.
I interpret it as “big-profit utility vehicles” ≠ “SUVs”. Didn’t use the words inaccurate or ignorant. My German friends mean something different if they say “brilliant or correct” than my American friends usage.
@ Salzigtal
Agree means different things depending where you are.
@newenthusiast
I am sure that the author was not aware of the rest of Mullers speech, that in context changes the overall meaning.VW is not going to be drastically going electric, which the initial post implied
Back when VW only made rear engine air cooled vehicles a friend of mine whose dad used to rebuild those in his garage was asked by my friend – “Dad why can’t we get an American car ?” “NO !” , his dad replied , “VEE VANT VOLKSVAGON !” True story . When VW went liquid cooled his dad bought a mid 70s Subaru .
@SnarkyRichard
Air cooled VW’s as relevant to VW Corp today as the Ford Model T and Edsel are to FoMoCo
For some perspective this happened 45 years ago . And don’t sell the Edsel short , it’s got what plants crave . It’s got electrolytes !
Doesn’t high profit mean less value for the consumer? In terms of technology and driving experience?
@ Superdessucke
No not at all. Higher prices do though.
Simplifying the engine lineup makes sense, but where do these auto people get the idea that electric drive will supplant the internal combustion engine? Where’s the electricsl energy going to come from? Oil fired power plants? Coal fired power plants? Nuclear?
All three are an envirnmental anathema, and switching from hydrocarbon fuels to electricity for transport will dramatically increase electricity consumption beyond the capacity of renewables without major breakthroughs. If they mean hybrids, they’ll still need IC engines to generate electricity to recharge batteries.
It seems Matty Muller et al. are depending on technical breakthroughs in many areas over the next 20 years that can’t be legislated, or achieved by throwing money at the problems that need to be solved. Muller is of course, Eurocentric in his outlook, but in 20 years, the Euro and even the EU and its regulatory bodies might not exist.
@Lorenzo
In the full interview he seems a bit dismissive of electric vehicles, saying 80% of vehicles will be still using Petrol/ Diesel in 2025
Its sound promising to see all major automobile companies accepting the fact that the petrol and diesel engines would eventually be replaced by electric cars. Have done a lot of damage to environment.
I had a 2001 gti vr6 2.8. I really loved that car. I still have dreams about it. I miss that bloated not overly fast mkIV quite a bit. Because in spite of it not being the fastest car on the road, it was a lot of fun to drive and push into understeer. That car was very predictable in how it would behave given the input I gave it. It was also very predictable in that the CEL would come on every 7k miles. The engine was really sweet though and here’s to hoping a modern vr6 comes along sometime soon.
What are/were the best and most reliable VW motors sold in the US for the last 17 or so years?
What were the worst?
@RS
VW means VW Corporation outside NA. There are many many engines put out by the Corporation. eg Bugatti 1500hp engine.
Just keep the 1.8T – love that engine in my Golf.