Volvo plans to become a “all-electric car company” by 2030, phasing out its gas, diesel and hybrid vehicles to become an early “leader”
At the time of writing, Volvo only sells two electric vehicles: the XC40 Recharge and the recently announced, online-only C40 Recharge. Both cars start in the $ 30,000 to $ 50,000 range, a sign that Volvo is aiming closer to the consumer market than the luxury one. In the short term, Volvo hopes that electric vehicles will make up half of car sales by 2025, which seems a realistic goal given the popularity of Volvo’s hybrid vehicles.
But is a sales strategy online only a good idea? Well, maybe the term “online only” is a bit misleading. Henrik Green, Volvo Cars’ Chief Technology Officer, confirmed to CNBC that Volvo will continue to offer test drives for its electric vehicles. But it will not sell vehicles from the parking lot. Instead, customers can go to a dealer, choose their car, and go through the online ordering process with a seller. Selling cars to order eliminates the need for huge, expensive dealers and should significantly reduce Volvo’s overhead (and by extension the price of its EVs).
Volvo isn’t the only manufacturer to set a fully electric deadline for itself. GM plans to go all-electric by 2035, with brands like Bently aiming for 2030. Even Ford hopes to go all-electric by 2030 … at least in Europe.
Source: Volvo via CNBC