Ford Authority

Ford Partner VW Pivots To Hybrids As EV Demand Falters

In addition to scaling back its EV ambitions in the U.S. amid faltering demand, Ford is also shifting gears in Europe, where it recently ditched its plans to go all-electric across that passenger vehicle lineup by 2030. Aside from the Ford Explorer EV and its yet-to-be-revealed counterpart – both of which ride on Volkswagen’s MEB platform – the automaker hasn’t made any decisions regarding future models, though they may wind up riding on a new low-cost platform and could even include small cars. Meanwhile, Ford’s partner – VW – continues to reap the benefits of that relationship, but has long remained adamant that it was sticking to its plan to electrify its own lineup. Now, however, the German automaker has changed course, according to Bloomberg.

Volkswagen ID.3 - Exterior 003 - Side

VW has long been one of the biggest proponents of electrification, even previously planning to launch as many as 75 new EVs globally by 2030. However, the automaker is now shifting gears and has admitted that it will need to pivot to plug-in hybrids to compensate for falling EV demand. At the same time, demand for the company’s ICE models has been so high that CEO Oliver Blume recently asked the European Union for leniency as it’s on track to miss its emissions allowance in 2025.

Meanwhile, Volkswagen has recently given up on its efforts to secure outside investors for its dedicated battery unit, and also scrapped plans to build an EV production facility in Germany that would have cost it €2 billion ($2.2 billion USD).

Volkswagen ID.3 - Exterior 002 - Rear Three Quarters

It’s a sharp turnaround for a company that emerged from a public scandal in which VW was caught cheating diesel emissions tests, prompting it to go all-in on EVs back in 2019. At the time, former CEO Herbert Diess declared that EVs were the clear future, noting a couple of years later that “many in the industry questioned our approach. Today, they are following suit, while we are reaping the fruit.”

We’ll have more on VW and Ford’s relationship soon, so be sure and subscribe to Ford Authority for 24/7 Ford news coverage.

Brett's lost track of all the Fords he's owned over the years and how much he's spent modifying them, but his current money pits include an S550 Mustang and 13th gen F-150.

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  1. William J. Offutt jr.

    Finally, there is common sense at VW , and Ford ! Hybrids give both economy , and a backup of a gas powered auto. Back in 1968, and 1969, and continuing into the Super Beetle Area; the air cooled VW’s were great ! Their economy were legendary , and fun to drive . I also owned a 1961 Corvair which was a great car. We also owned a 1961 Ford Futura with bucket seats and the console. Another fun car to drive!


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