Volvo is getting pancaked between slowing EV sales growth and its promised 2030 switchover to an entirely EV lineup.
The slowing EV sales trend is causing many in the auto industry to believe Volvo is looking closely at abandoning their 2030 goal.
According to a source quoted by Automotive News, an auto industry journal, “We will have to, or we will die,” said a dealer who requested not to be identified. “Volvo has gotten way out over their skis with this EV-only strategy.”
Please note EV sales and the looming 2030 date aren’t the only forces acting on this… there is also the entirely unpredicted resurgence in hybrid popularity.
Cadillac and several other brands have dialed back in the last year their own plans for an all-EV automobile offering. Cadillac also shared the 2030 deadline, interestingly. Maybe 2030 is just a nice, round number marketers couldn’t resist.
Adding to the misery at Volvo is that it got caught in a bad situation by deciding to build its EX30 small EV entirely in China.
The Rise of the Hybrids… Again
A surprising turn away from pure EV cars and trucks — and back to hybrids — has taken place in the United States in the last two years. Hybrids were supposed to be a stopgap technology that bridged the gap between gasoline and electricity, but that bridge is getting longer.
In February 2024, 105,803 HEVs (22,282 cars and 83,521 light trucks) were sold in the U.S., up 59.5% from the sales reported in February 2023.
https://electrifynews.com/news/auto/us-plug-in-hybrid-and-bev-sales-exploded-in-february-2024/
EV Sales Charts
Volvo’s All-EV by 2030 Announcement
Just in case this vanishes one day (hey it happens, it’s business), here is Volvo’s big all-EV by 2030 announcement as taken from their press page on 30 July, 2024:
Mar 02, 2021 ID: 277409
Volvo Cars is committed to becoming a leader in the fast-growing premium electric car market and plans to become a fully electric car company by 2030.
By then, the company intends to only sell fully electric cars and phase out any car in its global portfolio with an internal combustion engine, including hybrids.
The company’s transition towards becoming a fully electric car maker is part of its ambitious climate plan, which seeks to consistently reduce the life cycle carbon footprint per car through concrete action.
Its decision also builds on the expectation that legislation as well as a rapid expansion of accessible high quality charging infrastructure will accelerate consumer acceptance of fully electric cars.
Volvo Cars’ move towards full electrification comes together with an increased focus on online sales and a more complete, attractive and transparent consumer offer under the name Care by Volvo. All fully electric models will be available online only.
The 2030 ambition represents an acceleration of Volvo Cars’ electrification strategy, driven by strong demand for its electrified cars in recent years and a firm conviction that the market for combustion engine cars is a shrinking one.
“To remain successful, we need profitable growth. So instead of investing in a shrinking business, we choose to invest in the future – electric and online,” said Håkan Samuelsson, chief executive. “We are fully focused on becoming a leader in the fast-growing premium electric segment.”
Volvo Cars launched its first fully electric car, the XC40 Recharge, in markets around the globe last year. Later today the company will reveal its second fully electric car, a new model in the 40 Series.
In coming years Volvo Cars will roll out several additional electric models, with more to follow. Already by 2025, it aims for 50 per cent of its global sales to consist of fully electric cars, with the rest hybrids. By 2030, every car it sells should be fully electric.
“There is no long-term future for cars with an internal combustion engine,” said Henrik Green, chief technology officer. “We are firmly committed to becoming an electric-only car maker and the transition should happen by 2030. It will allow us to meet the expectations of our customers and be a part of the solution when it comes to fighting climate change.”
https://www.media.volvocars.com/global/en-gb/media/pressreleases/277409/volvo-cars-to-be-fully-electric-by-2030
