Herbert Diess, Volkswagen’s ex-chief, is pushing back against criticism of his hybrid vehicle strategy during his time at the helm of Europe’s biggest carmaker. This comes as the Financial Times reports a slowdown in EV enthusiasm and growing popularity of hybrids.

Diess Claims “Excellent Portfolio” of Plug-in Hybrids

Diess argues VW has a strong lineup of plug-in hybrids, including models of the Tiguan, Passat, and Golf. He says VW’s plug-in hybrid sales grew by nearly 20% in the first half of 2023, accounting for 3% of the group’s 4 million+ vehicles sold.

“That’s not true,” Diess told the FT, responding to accusations that he left VW “empty-handed” on hybrids.

Challenges in the German Market

Diess points to several factors hindering EV adoption in Germany:

Lack of wholehearted government endorsement
Mixed messages confusing German customers
Sudden withdrawal of EV subsidies
Inconsistent infrastructure investment

“The mixed messages around EVs really are confusing German customers,” Diess said.

Hybrid vs. Full Electric Debate

While defending hybrid tech, Diess called it a “missed opportunity” and “better alternative than EVs both economically and ecologically.”

He argues the larger batteries needed for long-range EVs are costlier and have a bigger carbon footprint.

Volkswagen’s Current Situation

VW’s new CEO, Oliver Blume, is facing tough decisions, including potential layoffs and plant closures. This marks a significant shift from the company’s three-decade-old job security guarantee.

EVXL’s Take

The debate over hybrids vs. full EVs continues to evolve. While VW grapples with its electric future, other manufacturers like Tesla are doubling down on pure EVs. The industry’s direction will likely depend on a mix of consumer preferences, government policies, and technological advancements. It’s crucial to keep an eye on how legacy automakers like VW navigate this transition compared to EV-only brands.

Recent Developments at Volkswagen

Volkswagen’s EV strategy has seen significant shifts in recent months. The company has centralized its EV development in China, aiming to better compete with local manufacturers and meet the unique demands of Chinese consumers.

This move includes scaling back the R&D center in Beijing to focus on hybrid vehicle projects, while expanding operations in Anhui province.

Additionally, Volkswagen is reconsidering its ambitious EV battery production goals, adopting a more flexible approach in response to uncertain demand.

These strategic shifts highlight the complex challenges automakers face in transitioning to electric vehicles, balancing regional market demands with global production capabilities.

What’s your take on VW’s hybrid strategy? Share your thoughts in the comments below.