Combustion engines are being phased out by German carmakers: VW, Mercedes and BMW are adopting new strategies.

Despite the current high demand for combustion engines and challenges in the electric vehicle business, German car companies are struggling to reduce their engine offerings. Diesel models in particular are under pressure as they are more suitable for the European market. VW plans to stop developing new combustion engines in the group by 2026, and from 2033 the group intends to completely withdraw from the sale of diesel and gasoline cars.

Mercedes, BMW and VW are also keeping an eye on the international car market, as developments outside Europe are less predictable. In the USA in particular, the demand for high-performance combustion engines is likely to continue, which will affect the strategies of German premium manufacturers.

With the decrease in the supply of combustion engines in Europe, production figures outside the continent can be increased, for example through cooperation between engine plants from different manufacturers. The future interaction between regulatory developments and market demands will therefore have a significant impact on the strategic direction of German car manufacturers.