Swedish-based Volvo Cars became the latest automaker to take a hard look at its commitment to become an all-electric vehicle maker and decide it couldn’t do it.
Volvo Cars CEO Jim Rowan said the company still believes EVs are the future, but that it’s just going to take longer to get there.
However, its path will be slightly different from that of Ford, Mercedes-Benz, and others as it’s decided to extend its timeline for offering an battery-electric only vehicle portfolio from 2030 to 2040.
The company notes it already offers five EVs and has five more in the development pipeline. However, much like the others, it recognizes the change in the market is moving toward hybrids and plug-in hybrids more quickly than to all-electric models.
“We are resolute in our belief that our future is electric,” said Jim Rowan, chief executive of Volvo Cars. “An electric car provides a superior driving experience and increases possibilities for using advanced technologies that improve the overall customer experience.
“However, it is clear that the transition to electrification will not be linear, and customers and markets are moving at different speeds of adoption. We are pragmatic and flexible, while retaining an industry-leading position on electrification and sustainability.”
The new plan
The 2024 Volvo EX30 is the brand’s first dedicated electric vehicle.
Officials note the plan remains to be a leader — in electrification. The new target is for 90% to 100% of its global sales to be battery-electric or plug-in hybrid vehicles by 2030. This means all vehicles with a cord.
The remaining 10% or less allows for a limited number of mild hybrid models to be sold, if needed.
By 2025, Volvo expects its percentage of electrified products to be between 50% and 60%. The company still plans to offer a complete lineup of fully electric cars, which will allow Volvo Cars to move to full electrification as and when market conditions are suitable.
The automaker also updated its carbon dioxide reduction plans as well, looking to drop car emissions by 65% to 75%. For next year, the company plans a 30% to 35% drop compared to 2018. This is compared to the original target of a 40% decline.
More Volvo Stories
- First Drive: Volvo EX30
- Volvo EX90 Finally Enters Production
- Volvo Raises EX90 Prices to Cover Higher Material Costs
A growing trend
Volvo’s EC40 shows the company’s push to meet the changing demands of new vehicle customers.
It has become apparent that the technology for EVs is developing more quickly than the infrastructure needed to reliably power the growing number of battery-electric models filling dealer lots.
This has the electric-curious buyer reconsidering what to purchase and shifting over to hybrids and PHEVs. Hybrid sales are up 40% through the first two quarters of 2024. As such, automakers are revamping their plans to meet the new sales wind.
Ford is in the process of increasing electrification in its lineup, but the company confirmed that shifting market conditions for electric vehicles have forced it to change more aspects of its broader plan. This time, the company has reassigned a plant that was originally reserved for EV production, with the Canadian facility now being tasked with helping the firm expand Super Duty production.
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