Volvo Shelves Plan to Make Only Electric Vehicles by 2030

Volvo has announced that it is shelving its plan to rapidly electrify its product line until it is only manufacturing electric cars by 2030. The ambitious electrification plan would have seen Volvo ramp up electric vehicle production and wind down the production of fossil fuel vehicles over the next several years until, by the end of the decades, those types of vehicles were completely eliminated from the automaker’s lineup.

Volvo first announced the target three years ago, but the automaker says “changing market conditions” have forced it to go back to the drawing board. Rather than an electric vehicle-only lineup, Volvo will most likely be manufacturing hybrid electric vehicles alongside its usual gas-powered cars by 2030.

The Swedish automaker’s decision comes soon after the global electric-vehicle industry was rocked by waning demand and low sales that left many automakers fielding massive losses. Additionally, the sector is also dealing with uncertainty after three major markets placed import tariffs on Chinese EVs. Volvo now joins the list of established carmakers that initially tied themselves to incredibly tight electrification timelines but are now reworking their plans due to lower-than-expected EV demand.

According to Volvo, at least 90% of its lineup will comprise both plug-in hybrids and electric cars by 2030. Volvo chief executive Jim Rowan says the Swedish company still believes electric vehicles represent its future but noted that with markets and consumers moving at different speeds, the transition to electric won’t be linear. A changing business climate characterized by factors such as reduced consumer incentives and glacial rollout of public EV-charging infrastructure contributed to Volvo’s decision to shelve its EV-only plan.

Speaking to BBC’s Today program, independent equity analyst Anna McDonald noted that limited charging infrastructure keeps many consumers from transitioning to EVs. Furthermore, governments are withdrawing EV incentives and subsidies even though electric vehicles are still more expensive than internal combustion engine (ICE) cars.

China is the only country that has figured out how to develop affordable electric cars, but import tariffs imposed by the European Union, the United States and Canada mean these cars can’t reach hundreds of millions of consumers in key markets. Western carmakers, on the other hand, are still spending a fortune to manufacture EVs and taking tens of thousands to hundreds of thousands of dollars in losses just to get the cars off the lot. With the global EV market in such a condition, it was a question of when and not if Volvo would lower its electric-vehicle ambitions.

It would be interesting to see what measures purely EV startups such as Cenntro Electric Group Ltd. (NASDAQ: CENN) are taking to thrive in these challenging market conditions, which are driving legacy auto manufacturers such as Volvo to rethink their electrification plans.

About GreenCarStocks

GreenCarStocks (“GCS”) is a specialized communications platform with a focus on electric vehicles (“EVs”) and the green energy sector. It is one of 60+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, GCS is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, GCS brings its clients unparalleled recognition and brand awareness. GCS is where breaking news, insightful content and actionable information converge.

To receive SMS alerts from GreenCarStocks, text “Green” to 888-902-4192 (U.S. Mobile Phones Only)

For more information, please visit https://www.GreenCarStocks.com

Please see full terms of use and disclaimers on the GreenCarStocks website applicable to all content provided by GCS, wherever published or re-published: https://www.GreenCarStocks.com/Disclaimer

GreenCarStocks
Los Angeles, CA
www.GreenCarStocks.com
310.299.1717 Office
Editor@GreenCarStocks.com

GreenCarStocks is powered by IBN