Porsche Considers Possible Delay of Europe’s 2035 Combustion Engine Ban

    Porsche Believes Combustion Engine Could Survive in EU Beyond 2035

    In a surprising revelation, Porsche Chief Financial Officer Lutz Meschke shared his belief that sales of new cars with combustion engines could continue in the European Union (EU) even after the proposed ban in 2035. Speaking at the world premiere of the Macan EV in Singapore, Meschke expressed his view that the future of the combustion engine might not be as bleak as many assume. He stated, “There’s a lot of discussions right now around the end of the combustion engine. I think it could be delayed.”

    This statement comes in the context of the EU’s plan to ban the sale of new cars with combustion engines from 2035. However, Meschke hinted that the ban may not apply to all types of combustion engines. Cars that generate emissions, such as those running on hydrogen or synthetic fuels, may still be permitted under the proposed regulations. Additionally, the European Commission is considering allowing the sale of new internal combustion engine (ICE) cars after 2035, provided they run on climate-neutral fuels. Furthermore, automakers may be required to demonstrate that their vehicles can operate solely on e-fuels that are carbon neutral.

    Despite these potential developments, Porsche itself aims for a significant shift towards electric vehicles (EVs). By 2030, the iconic sports car brand expects over 80 percent of its global annual deliveries to be EVs. In line with this transition, Porsche plans to retire a gas model prematurely in the EU due to upcoming cybersecurity regulations. The first-generation Macan will make way for its fully electric, second-generation counterpart, albeit at a higher price tag.

    Lincoln to Trim 100 Dealerships in the United States

    Meanwhile, Ford’s luxury brand, Lincoln, is set to streamline its dealer network in the United States by cutting 100 dealerships this year. This move follows the elimination of 100 dealerships last year, bringing Lincoln’s total showroom count to approximately 400 by the end of 2024.

    Most Lincoln dealerships in the US operate in conjunction with a Ford store. In an interview with Automotive News, Lincoln President Dianne Craig explained that retailers who agree to the buyout will receive additional Ford inventory, offering them added incentives to support the transition. Moreover, Lincoln seeks to incentivize returning customers through special plans.

    This downsizing trend extends to other American luxury brands as well. For instance, Buick, under General Motors, nearly halved its dealer footprint in 2023, reducing its showroom count to approximately 1,000. Buick dealerships have been given a choice: invest in electric vehicle tooling and training or accept a buyout. As a result, the brand ended the year with a 47 percent decrease in dealerships.

    In conclusion, these recent developments in the automotive industry suggest that the combustion engine might have a lasting presence in the EU post-2035. Meanwhile, Lincoln’s decision to cut 100 dealerships reflects a wider strategy among luxury brands to optimize their sales networks in response to evolving market dynamics.

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