Toyota, Subaru and Mazda did not build one combustion engine together. On May 28, 2024, they announced separate plans to develop engines designed to work with electric drive systems and support their carbon-neutrality goals. The headline’s claim that Volkswagen refuses to develop combustion engines is also inaccurate: Volkswagen’s disclosures describe ongoing combustion and hybrid development, including a full-hybrid system announced for the Golf and T-Roc.
What did Toyota, Subaru and Mazda announce about new engines?
The three automakers said they would develop new engines suited to electrification. Their stated aims include making engines more compact, integrating them with motors, batteries and other electric drive components, and meeting stricter emissions regulations. The companies also named e-fuels, biofuels and liquid hydrogen as potential fuel alternatives. The joint announcement describes three distinct approaches—not a jointly designed engine.
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The manufacturers framed this work as one route toward carbon neutrality alongside electrification. These are development objectives, not proof of measured gains: the announcement does not provide comparable fuel-economy or emissions results, lifecycle assessments, fuel availability or costs for the planned engines.
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Are Toyota, Subaru and Mazda building one engine together?
No. The companies said they would compete while developing engines rooted in their different engineering identities. The shared element is the goal of adapting combustion engines to electrified vehicles, not a common engine design.
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| Automaker | Architecture or direction identified | What is established |
|---|---|---|
| Subaru | Horizontally opposed engine | Subaru said it would continue refining its signature architecture, including for possible carbon-neutral fuels. Its separate hybrid plans are described below. |
| Toyota | Inline-four | The joint announcement identifies Toyota’s signature engine architecture and calls for compact engines that integrate with electric drive units. It does not give final specifications or a production date for a new engine family. |
| Mazda | Rotary engine in the 2024 announcement; later, a 2.5-liter SKYACTIV-Z inline-four | Mazda’s 2024 announcement highlighted rotary engines used as generators. Its 2025 strategy briefing later described the SKYACTIV-Z inline-four, planned for a hybrid application. |
How are Subaru’s and Mazda’s engine plans tied to hybrids?
Subaru: a boxer engine paired with Toyota’s hybrid system
In a separate management update, Subaru said its next-generation Forester hybrid would pair the Toyota Hybrid System with a Subaru horizontally opposed engine. It also described a next-generation hybrid as planned for the Crosstrek. These are specific vehicle plans, not evidence that every future Subaru engine will use this arrangement. Subaru’s May 2024 management policy update sets out those plans.
Mazda: SKYACTIV-Z planned for a hybrid CX-5
Mazda’s 2025 strategy briefing identifies a 2.5-liter SKYACTIV-Z inline-four under development for use with electrification. Mazda says it is scheduled for the next-generation CX-5 with the company’s hybrid system by the end of 2027. That is a company-stated target, not confirmation that the vehicle or engine has launched, nor a verified performance result. Mazda’s Multi-Solution Briefing 2025 describes the plan.
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Is Volkswagen stopping combustion-engine development?
No. Volkswagen Group’s 2025 Annual Report says the company is developing a future drivetrain portfolio that includes combustion engines, hybrids and electric drives. It also expects conventional combustion engines to remain a large part of its portfolio in coming years. The annual report’s research and development section describes that strategy.
Volkswagen also announced a new full-hybrid system in April 2026 for the Golf and T-Roc. The company says it combines a 1.5 TSI evo2 petrol engine, two electric motors and a high-voltage battery, with launch scheduled for the fourth quarter of 2026. This is a planned product, not evidence that it had launched by the time of the announcement. Volkswagen’s announcement outlines the system and timing.
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Volkswagen’s disclosures establish what the company says it plans; they do not independently verify future delivery. But they directly contradict the literal claim that it refuses to develop combustion or hybrid powertrains. The more accurate comparison is between different strategies and announcements—not between Japanese automakers developing combustion engines and Volkswagen abandoning them.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What does “carbon-neutral fuel” mean here—and what remains unproven?
The joint announcement names synthetic e-fuels, biofuels and liquid hydrogen as possible alternatives for future engines. It presents fuel flexibility and compactness as development aims, not as evidence that every planned engine will run on every listed fuel. The release gives no comparative lifecycle-emissions data, cost or supply analysis, or demonstrated results for the three programs. Its explanation of carbon-neutral fuels reflects the manufacturers’ framing; it is not an independent assessment. The joint release provides that framing.
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That distinction matters when judging the plans: a fuel’s overall climate impact depends on more than what comes out of a vehicle’s exhaust. The available company announcements do not establish that these engines will outperform alternatives on emissions, efficiency, cost or real-world performance.
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