Stellantis, Mercedes-Benz and Volkswagen won't split EV operations

As more and more automotive manufacturers invest in electric vehicles, many are temporarily diving their operations between EVs and traditional internal combustion engine models.

In a contrast to Ford's decision earlier this year to establish an EV side of the business in Model E, as well as renaming its ICE operations to Ford Blue, European manufacturers Stellantis, Mercedes-Benz and Volkwagen have all said their respective efforts will continue under the same roof.

For Stellantis, the multi-national conglomerate, which is comprised of 14 brands, believes there's no benefit to splitting EV and ICE – rather there are more financial incentives to keep the two together.

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Stellantis-owned Maserati will continue to build ICE vehicles until 2030

“I don’t honestly see huge benefits to doing that,” said Chief Financial Officer Richard Palmer.

“We need to manage the company and assets we have through this transition. There are benefits to having the cash flow from the internal combustion business to drive the technology investments we need to make.”

Mercedes-Benz's head honchos say keeping both EV and ICE under the same roof allows both to grow, advancing the company as one.

"We are not pursuing the strategy to break up the company in an ICE part and ‘the good part’ … or an old part and the new part," said Mercedes-Benz's head of finance, Harald Wilhelm.

“We are transforming the whole company and transforming it into the electric world."

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Volkswagen CEO Herbert Diess said the ICE business can assist its EV operations through development and capital assets.

"We think making the best use of ICE assets to be fast and competitive in the electric world is the best way forward for us," said Diess.

While Volkswagen has committed to a fully-electric vehicle line-up in Europe by 2035, Stellantis and Mercedes-Benz have both targeted 2030 as their switch-over dates, roughly the same time production of ICE vehicles will be banned by the European Union.