Volvo also rethinks electric car strategy - more time is needed

The company still claims to be aiming for a completely zero-emission range by 2030, but evaluates hybrid and plug-in alternatives

The EM90 electric MPV

By: Francesco Barontini

Published by: Brian Potter

Jul 27, 2024 at 3:17am ET

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In the end, even a manufacturer like Volvo, one of the leaders of the ecological transition, said it might review its plans on the electric car. The problem is always the same: the market has lost steam, growth is slowing down and electric cars are selling more and more, but not as many as previously imagined.

So, for a car manufacturer, it is necessary to find alternatives to keep volumes high. For now, the focus in Gothenburg is still on getting to 2030 with only electric cars on the list, but the possibility of implementing a Plan B is beginning to emerge.

Considering all forms of electrification

Bjorn Annwall, Volvo's sales director, vowed last year that the company would no longer sell a single car that was not electric after 2030, and that was worldwide. Today, Jim Rowan, group CEO, takes a more cautious stance and said during an online meeting with investors: "I am a strong supporter of the electric car, but as things stand today it is understood that it will take time to harmonise the various regions of the world and get to zero emissions everywhere.

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So? Hybrid could be put alongside electric. Rowan continued: 'Hybrid models are a solid alternative and an ideal bridge to take our customers towards pure electric. Full hybrids and plug-in hybrids are registering very good numbers and this makes us think about continuing to invest in these types of cars.

Dealers are afraid

According to a report by Automotive News Europe, it is American dealers in particular who are afraid that a too rapid switch to pure electrics will put sales (which in the first months of 2024, speaking of electric XC40s and C40s, dropped by 74%) into crisis. A person reached by the prestigious newspaper who asked to remain anonymous said that if Volvo does not change strategy many dealers will be forced to close.

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The company, however, is not deaf to certain demands. Taking advantage of its collaboration with Geely, it is looking to expand its range of plug-in hybrid models. Moreover, a few months ago, it signed a partnership with Renault to develop more efficient combustion and hybrid engines.

Among Volvo's various moves to extend the life of internal combustion cars is an upgrade of the SPA1 platform on which the XC90 and XC60 are built, which could allow more modern and efficient versions of the two SUVs to be sold.

Demand for electric cars is retracting:

Porsche revises plans for electric cars

Audi: The transition to electric powertrains will take longer

Stellantis has 22 electric models, but how are they selling?

Study: Dip in demand for electric cars will soon be over