Ferrari and Porsche will profit from plans to exempt automobiles that run on e-fuels from the European Union’s deliberate 2035 phase-out of combustion engine autos.

“The excellent news for us as an organization is that on high of electrical automobiles, we can even be capable of go on with our inside combustion engines ones,” CEO Benedetto Vigna mentioned.

“This choice may be very fascinating for us as a result of it permits ICEs to transcend 2036,” he advised a Reuters Newsmaker occasion on Monday.

Ferrari, which is famend for its highly effective gasoline engines, has by no means supplied a roadmap for going all electrical.

The corporate is already producing plug-in hybrid automobiles and has promised its first full-electric automobile for 2025.

Vigna mentioned the full-electric mannequin can be “a singular automotive” however didn’t focus on any particulars, including that “preserving secret is a part of the recipe.”

He mentioned that he anticipated the value of e-fuels to come back down as they’re developed in coming years. “They’re a brand new expertise, and like for all new applied sciences they’ve time to grow to be cheaper,” he mentioned.

Ferrari plans for absolutely electrical and hybrid fashions to make up 80 p.c of fashions in its vary by 2030 whereas 20 p.c will nonetheless be powered by inside combustion engines.

“This doesn’t change,” Vigna mentioned. “We do not wish to inform purchasers which automotive to make use of. We wish to make three sorts of propulsion out there for them — hybrid, electrical and ICE — and they’re going to select.”

Vigna reassured buyers that the corporate’s funding plans wouldn’t be affected by combustion engines getting an prolonged life, as a result of Ferrari had already “embedded” this situation in its marketing strategy.

“The determine I gave (final yr) — 4.4 billion euros ($4.7 billion) for capex within the 2022-2026 interval — it is sufficient for us to go forward with electrification and likewise with ICEs that are suitable with e-fuels,” he mentioned.

The European Union and Germany reached an settlement on Friday permitting new automobiles powered by combustion engines to be bought past the 2035 deadline in the event that they run on carbon-neutral e-fuels. Germany’s transport ministry had for weeks blocked the EU’s plan, demanding an exemption for automobiles that use e-fuels.

VW: e-fuels are ‘helpful’

Volkswagen Group mentioned the e-fuels deal will assist low-volume fashions such because the Porsche 911 sports activities automotive. “We see e-fuels as a helpful addition to the present fleet of combustion engines and for particular functions,” mentioned VW, which counts Porsche amongst its manufacturers.

“E-fuels from renewable energies are a contribution to sustainable mobility — the settlement offers producers and above all shoppers a transparent perspective for planning,” the automaker mentioned.

VW added that it stays dedicated to the electrification of its lineup with a aim of EVs accounting for round 10 p.c of gross sales this yr and greater than half on the finish of the last decade.

VW’s efforts on artificial fuels are led by Porsche, which doesn’t plan to make an electrical 911. Porsche has invested in an e-fuel plant in Chile

VW Group and Porsche CEO Oliver Blume was criticized final yr after saying at an inside occasion that he efficiently lobbied for e-fuels to be included within the new German authorities’s coalition settlement

The deal between the EU and Germany deal is anticipated to vary little relating to automakers’ long-term plans to promote solely battery-electric automobiles in Europe by 2035, other than probably the most high-end autos.

What are e-fuels?

E-fuels, like e-kerosene, e-methane, or e-methanol, are made by synthesizing captured CO2 emissions and hydrogen produced utilizing renewable or CO2-free electrical energy.

The fuels launch CO2 into the ambiance when combusted in an engine. However the concept is that these emissions are equal to the quantity taken out of the ambiance to supply the gas — making it CO2-neutral general.

Reuters and Bloomberg contributed to this report