Volvo has announced that it has abandoned plans to sell only electric cars by the end of the decade, making the Swedish carmaker the latest automaker to backtrack on ambitious electric vehicle plans.
Volvo was one of the first automakers to commit to an all-electric lineup, but the company backed away from its plans to sell only electric cars just three years later. Pledged The company says it plans to become a fully electric vehicle company by 2030.
“It's clear that the transition to electrification is not linear, and customers and markets are moving at different adoption speeds.”
Volvo said it needed to “adjust its electrification efforts due to changing market conditions and customer demands.”
“Going forward, Volvo Cars aims for 90-100 percent of its global sales to be electric by 2030 – that means a mix of both fully electric and plug-in hybrids, with virtually all cars being corded,” the company said in a statement. press release It was shared on Wednesday.
“This replaces the company's previous ambition to have an all-electric range by 2030,” Volvo said.
“We believe the future is electric,” said Volvo Cars CEO Jim Rowan. “Electric vehicles offer a great driving experience and greater potential for 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 adopting it at different speeds. We will respond pragmatically and flexibly while maintaining our industry-leading position in electrification and sustainability,” Rowan acknowledged.
Volvo cited “slower than expected rollout of charging infrastructure, the withdrawal of government incentives in some markets and further uncertainty caused by recent tariffs on electric vehicles in various markets” as reasons for the decline in demand for electric vehicles.
Volvo Cars said it needed “stronger and more stable government policies to support the transition to electrification.”
The company said it plans for 50 to 60 percent of its lineup to be electric by 2025.
Volvo added that the proportion of fully electric vehicles in its lineup will reach 26% in the second quarter of 2024, the highest level among its premium vehicles. The company said EVs and hybrids make up 48% of its lineup.
Volvo is owned by Chinese car company Geely Automobile. Volvo and Geely Automobile also own the Polestar EV brand.
last week, Bloomberg Polestar reported an operating loss of $242.3 million in the second quarter. Polestar acknowledged that revenue fell 17% to $574.9 million due to “lower global sales volumes and increased discounts.”
Bloomberg reported, “Once a pioneer of the electric-car movement, Polestar has struggled with high costs and growing competition from new entrants, including from China. At the same time, rising inflation and the end of subsidies in key markets are sapping consumer demand for EVs, forcing some automakers to cut prices.”
Volvo's backtracking on its ambitious electric vehicle targets comes at a time when other automakers are scaling back their electric vehicle efforts.
As BlazeNews reported last month, Ford Motor Company has announced steps to scale back several EV plans. Ford has canceled plans to build a large, three-row electric SUV. The American automaker also has new plans to focus on smaller, cheaper EVs in the future, with hybrid technology being used to power larger vehicles. Ford will also cut future capital spending plans for pure EVs from 40% to 30%. Ford's EV division is reportedly on pace to lose up to $5.5 billion this year.
3 years ago, Mercedes-Benz Declared The company had planned to launch a fully electric range in 2030 “if market conditions allow,” but in February Mercedes reversed course, saying it would continue to make internal combustion and hybrid vehicles after 2030.
“The change in policy is the latest sign that the global auto industry is becoming increasingly pessimistic about the future of all-electric vehicles, spurred by weaker-than-expected demand for EVs.” Forbes.
Reuters In June, it was reported that General Motors had lowered its 2024 EV production forecast from 300,000 to 250,000 units.
Porsche watered down its plans to become an all-electric car maker in July.
“The transition to electric vehicles is taking longer than we thought even five years ago,” Porsche said. statement“Our product strategy is built to enable us to deliver more than 80% of our vehicles as fully electric by 2030, in line with customer demand and the evolution of electric vehicles.”
According to Edmunds Electric vehicles made up just 6.8% of new car sales in the U.S. in May 2024, according to sales data.
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