Volvo scraps plan for fully electric fleet by 2030, citing market conditions, demand

Volvo scraps plan for fully-electric fleet by 2030 citing market conditions and demand
UPI

Sept. 4 (UPI) — Volvo said Wednesday it no longer plans to have a fully electric fleet of vehicles by 2030.

The Swedish automaker announced the decision in a statement saying it now aims for 90% to 100% of its global sales volume within the same timeframe to consist of “electrified cars” which it identified as “in essence, all cars with a cord” including both fully electric and plug-in hybrid models.

“The remaining 0-10% will allow for a limited number of mild hybrid models to be sold, if needed,” Volvo said.

Volvo said there has been a slower-than-expected rollout of EV charging infrastructure combined with the withdrawal of government incentives in some markets and uncertainties caused by tariffs in some markets.

Volvo said it has five fully electric cars now and another five models in development.

“While Volvo Cars will retain its position as an industry leader in electrification, it has now decided to adjust its electrification ambitions due to changing market conditions and customer demands,” the Volvo statement said.

By 2040, Volvo said, it expects to reach net zero greenhouse emissions.

“We are resolute in our belief that our future is electric,” said Volvo CEO Jim Rowan. “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.”

In 2021 the company declared all of its vehicles would be fully electric by 2030 and also sold exclusively online.

At that time Volvo said by 2025 EVs would comprise 50% of its global sales with the other half being hybrids.

Volvo said Wednesday by 2025 it expects 50% to 60% of its vehicles to be electrified and “well before the end of this decade” Volvo will have a complete lineup of fully electric cars available.

As for carbon dioxide emissions, Volvo said it “aims to have reduced CO2 emissions per car by 65%-75% compared to a 2018 baseline, an adjustment of the previous 75% reduction ambition.”

Volvo’s current five electric models include the EX40, the EC40, the EX30, the EM90 and the EX90.

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