Volvo Cars announced overnight Tuesday that it will join other companies by going full electric by 2030 but in a twist, will offer its new electric vehicle (EV) family online only. By the end of the decade, the company will have phased out any vehicle in its portfolio with an internal combustion engine (ICE), including hybrids.
“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.”
The new plan will be known as Care by Volvo. 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.
Other companies that have already committed to going EV only include General Motors by 2035 and Ford in its European market by 2030. Bentley is scheduled to market only EVs and hybrids by 2026 and Rolls-Royce will chart a similar path, forced by metropolitan areas around the world that plan to ban ICE-powered vehicles in the future.
Jaguar may have the most ambitious changeover planned, announcing in mid-February that it will go to all EVs by 2025 with Land Rover EVs to appear just three years from now and six EVs by 2025.
Volvo also plans to increase investment in its online sales channels, make a sharp drop in product offerings, making them simpler, and use clear and set pricing. By 2025, it aims for 50 percent of its global sales to consist of fully electric cars, with the rest hybrids.
“The future of Volvo Cars is defined by three pillars: electric, online and growth,” said Lex Kerssemakers, head of global commercial operations. “We want to offer our customers peace of mind and a care-free way of having a Volvo, by taking away complexity while getting and driving the car. Simplification and convenience are key to everything we do.”