Car manufacturers turn to new hybrid and gasoline models to strengthen profits


Be informed about free updates

Car manufacturers make fresh pressure into new hybrids and upgraded gasoline cars because managers look to increase profit due to expensive waiting for electric vehicles to become mainstream.

General Motors, Porsche, BMW and Mercedes-Benz have been advocated in the last few weeks invest In a new or upgraded engine for internal combustion (ICE) and hybrid models, even when they increase the introduction of electric cars to meet the more severe regulations on emissions in Europe and elsewhere.

The global new model of launch of ice and hybrid vehicles is expected to increase 9 percent from 2024 this year, according to S&P Global Mobility. Car manufacturers are expected to introduce 205 petrol models, less than 4 percent compared to 2024, while the hybrid launch is predicted to increase 43 percent to 116 models.

A column chart of showing new global launch of models

Last week, Mercedes-Benz discovered plans for launching 19 petrol vehicles compared to 17 battery electric vehicles between 2025 and 2027 after Sales and profit margins He hit in the midst of slowing down the growth of demand for electric cars.

“If you do not believe that market conditions will be dominant electric at the age of 2030.

Porsche, who suffered an electric Taycan sedan of 49 percent last year, also thinks about his EV strategy. This month, a manufacturer of luxury cars announced that Behave your future setting And contact EUR 800 million in the development of new combustion engines and hybrid vehicles.

The inherited car manufacturers must face the cost of investing in future electric and hybrid vehicles, while maintaining the combustion engine technology than expected.

Hybrids, which combine batteries with internal combustion engine, are very profitable and attractive to car manufacturers in the midst of growing consumer demand and the need to reduce emissions. EU 2025 rules require that each car manufacturer must reduce the total emission by 15 percent compared to the basic line 2021. Brussels should also ban the sale of new gas and diesel cars from 2035.

Car manufacturers seek flexibility in the rules on emissions and ban in 2035, and BMW urged the ban to be canceled.

In recent weeks, Volvo Cars, Mercedes-Benz and Renault have projected lower profits this year due to the risk of the global tariff war, as well as the cost of fulfilling the stricter standards of emissions-it has been more difficult to leave more profit from gasoline and hybrid vehicles.

“We’re moving quickly on the side, but we don’t even slow down ice,” said Renault CEO Luca de Meo. “Getting EV to be dominant technology in Europe is a trip that will last for 20 years.”

Although the growth of EV sales slowed down in Europe, demand increased in China, where electric and hybrid vehicles made up 47 percent of sales last year by sales only 6 percent five years ago, according to a car headquartered in Shanghai.

Geely Zeekr Center in Shanghai © Bloomberg

Electric vehicles are more expensive to produce gasoline vehicles due to high batteries costs, which means that car companies still make lower profit margins at EVS.

Mercedes-Benza financial director Harald Wilhelm said the group reduced EV costs by more than 15 percent. This would tear down the difference of costs compared to the combustion engine cars, but Wilhelm added that when it came to the closed of a gap “we do not want to promise the things we cannot do.”

The largest European car manufacturer Volkswagen is no longer sure that he will stop selling gasoline cars in Europe by 2033, to get to know the discussions according to one person. “It would be stupid (stop selling cars to combus) if our customers want them,” said the person.

In the US, General Motors also refreshed his Ice models.

While his share in the US last year rose from 6 to 9 to 9 percent on the back of demand for completely electric Chevrolet Equinox, his executives warned that growth in the overall market is likely to slow down after US President Donald Trump signaled the end of subsidies for subsidies Consumers for EVS.

“I think we can have a scenario in which ice profitability, Ice flows can continue longer than you might otherwise,” said GM CEO Paul Jacobson at the Barclays Conference last week.

An additional reporting of Ian Johnston in Paris



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *