Chinese-owned Volvo plans to fully transform its present production plants in Sweden to produce only electric vehicles and hopes to accomplish the goal by 2030. Volvo thus plans to exit the internal combustion-based auto market entirely by the turn of this decade. The company says there is no long-term future for internal combustion vehicles and joins UK-based carmaker Jaguar who had also made the decision to transition fully to EV production by 2025.
Volvo launched its first fully-electric car, the XC40 Recharge SUV in 2019. With EVs increasingly measured by their mileage on a full charge, as well as recharge times, the XC40 Recharge has a 200-mile range, and fast charging capability as the batteries can be charged up to 80% in just 40 minutes. Volvo is about to launch its second fully-electric vehicle.
In addition, Volvo also says it will only sell the electric cars online, aimed at significantly cutting down operating expenses that are bound to go up with the operation of physical stores.
The company is obviously ramping up its previous plans of having up to 50% of its car sales be electric by 2025 and says the new strategy is an “acceleration of existing targets driven by very strong demand for its electric models. It says it will continue to meet the exceptional quality it has always been known for by focusing on fewer models that would well exceed customer expectations.
Volvo also hopes to make strong investments in its e-commerce platform so as to seamlessly transition to an online-only sales model easily compatible with its customer expectations.
In the words of CEO, Hakan Samuelson, “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. We are fully focused on becoming a leader in the fast-growing premium electric segment.”
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