Swedish car brand Volvo as announced a significant shift in its future plans by confirming that it will build electric cars only by 2030.
Volvo were one of the first car manufacturers to investigate the possibility of ditching combustion engines for good in 2017 and is currently on a pathway to achieving half of its sales to be pure electric by 2025. The announcement may surprise some industry insiders, particularly as Volvo plan to phase out plug-in 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.”
Samuelsson’s comments hint at changes to the Swedish company’s business model, which will shift from dealerships to online, with all fully electric models only available to purchase on their website.
“There is no long-term future for cars with an internal combustion engine,” said Henrik Green, chief technology officer. “We are firmly committed to becoming an electric-only car maker and the transition should happen by 2030. It will allow us to meet the expectations of our customers and be a part of the solution when it comes to fighting climate change.”
Volvo are joined by Ford and Jaguar, who also recently announced that they would be going all electric within the next ten years.