Volvo abandoned its ambitious electrification plan
Swedish car manufacturer Volvo has announced that it is abandoning its ambitious plan to produce only electric vehicles from 2030.
The Swedish company, which has been promoting a “more environmentally friendly business strategy” for years, explained that due to “changing market conditions” they decided to reduce the goals they set three years ago.
“It is a pragmatic approach. For many customers in many markets, this journey will be gradual,” Erik Severinsson, head of strategic business, diplomatically explained the decision in an interview with Reuters.
The decision is a response both to the lower-than-expected demand and to the uncertainty introduced into the business by the announced tariffs on Chinese vehicles (especially to possible Chinese retaliation).
Volvo, which is majority owned by the Chinese company Geely, now plans to produce at least 90 percent electric and hybrid vehicles.
This move follows similar actions by major (American) vehicle manufacturers such as General Motors and Ford, which recently canceled the start of production of large electric SUVs and delayed the start of production of electric pick-ups.
Volvo Cars, which prides itself as a pioneer in the field of CO2-free vehicles, states that the decision is the result of less demand for fully electric vehicles and hybrids than expected, but at the same time they claim that they will achieve at least a partial goal – that by the beginning of next year, sales of electric and hybrid vehicles together reaches between 50 and 60 percent of all units sold.
The previous goal, which was abandoned a few months ago, was for at least half of all vehicles sold to be electric by 2025.
“We still remain firm in our belief that the future is fully electric, but it is becoming increasingly clear that the transition to electrification will not be linear and that consumers and markets are moving towards that goal at different speeds,” Volvo Cars CEO Jim Rowan told Reuters.
At the same time, Swedish society calls on decision-makers to adopt a “stronger and more stable” policy to support the electrification of personal vehicles.
Source: Seebiz
Photo: BIZLife, screenshot
Source: bizlife.rs
