Volvo backtracks on EV pledge, as other automakers have done the same

Sep 09, 2024

Jack Aylmer Energy Correspondent

By Jack Aylmer (Energy Correspondent), Jack Henry (Video Editor), Ali Caldwell (Graphics)

Volvo has revised its plan to transition fully to electric vehicles (EVs) by 2030. The automaker now anticipates that between 90%-100% of its cars sold by the end of the decade will either be electric vehicles or hybrids, while up to 10% of sales will comprise of mild hybrids, where electric power supplements a combustion engine.

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This shift reflects a broader trend among major automakers, including Tesla, General Motors, Ford, and Toyota, who have also recently scaled back their electric vehicle targets.

Volvo’s decision to reconsider its EV plans comes several months after CEO Jim Rowan had predicted “tremendous growth” in the EV market.

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“We are resolute in our belief that our future is electric,” Rowan said in a statement about the company’s recent EV cutbacks. “However, it is clear that the transition to electrification will not be linear, and customers and markets are moving at different speeds.”

Volvo has also adjusted its short-term goals. Initially, the company aimed for fully electric vehicles to comprise at least 50% of its sales by 2025. The updated target now includes both EVs and hybrids, which together are expected to account for 50%-60% of sales.

The market responded swiftly to the news, with Volvo’s shares dropping by 7.5% on Friday, Sept. 6, following the announcement. Despite this, Volvo maintains that its revised strategy better aligns with current market dynamics and consumer preferences.

Tags: Auto industry, Electric vehicles, General Motors, Volvo

JACK ALYMER: VOLVO IS BACKING OFF ITS COMMITMENT TO GO ALL ELECTRIC BY 20-30.

THE AUTOMAKER NOW PROJECTS THAT INSTEAD BETWEEN 90 TO 100 PERCENT OF THEIR CARS SOLD WILL EITHER BE EVS OR HYBRIDS.

UP TO 10 PERCENT OF THEIR SALES WILL CONSIST OF SO-CALLED MILD HYBRIDS-
WHERE ELECTRIC POWER ONLY SUPPLEMENTS A COMBUSTION ENGINE.

AND THEY’RE CERTAINLY NOT ALONE IN TEMPERING EV EXPECTATIONS.

WITH COMPANIES LIKE TESLA, GENERAL MOTORS, FORD, TOYOTA AND MORE ALL READJUSTING THEIR TARGETS.

THIS COMES JUST A FEW MONTHS AFTER VOLVO HAD PREVIOUSLY DOUBLED DOWN ON ITS ALL EV INITIATIVE.

THE COMPANY’S CEO REAFFIRMING HIS DESIRE TO SELL ONLY EVS BY THE END OF THE DECADE AT THE BEGINNING OF THIS YEAR-
SAYING HE FORESAW QUOTE “TREMENDOUS GROWTH” IN ELECTRIC MODELS.

WITH THIS RECENT ADJUSTMENT, VOLVO ALSO REVISED ITS EV GOALS FOR NEXT YEAR.

AFTER PREVIOUSLY SAYING AT LEAST 50 PERCENT OF THEIR VEHICLES SOLD WOULD BE FULLY ELECTRIC BY 20-25,
THE AUTOMAKER IS NOW AIMING FOR A COMBINATION OF EVS AND HYBRIDS TO MAKE UP BETWEEN 50 TO 60 PERCENT OF THEIR SALES VOLUME.

SHARES IN THE COMPANY FELL BY 7 AND A HALF PERCENT FRIDAY AFTER THE NEW PLANS WERE LAID OUT-
MEANWHILE, VOLVO SAYS the change IS A RESPONSE TO FLUCTUATING MARKET CONDITIONS AND CUSTOMER DEMANDS.

JACK AYLMER – STRAIGHT ARROW NEWS.

Volvo backtracks on EV pledge, as other automakers have done the same

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