Remember ‘Electric First’? VW Backtracks On EVs, Looks To PHEVs for Growth

Volkswagen's CEO says the brand will increase its investment in plug-in hybrids to meet consumer tastes. The automaker follows brands like Mercedes, GM, and Ford, which have all committed to offering more PHEVs as growth in the EV segment slows. The move is a surprising one from the automaker that committed to going all-electric in the wake of the Dieselgate scandal.

The automaker has also recently backed away from plans to build a €2 billion EV factory in Germany, and has stopped looking for outside investors for its battery subsidiary — though it is still committed to building gigafactories in Spain and Canada. Despite Diess's ambitious electrification plans, the automaker is on track to surpass European emissions targets next year, prompting the new head of the Volkswagen empire, Oliver Blume, to ask the EU to ease regulations.

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