GOTHENBURG, Sweden — Volvo Cars plans to become a fully electric car company by 2030.
By then, the company intends to only sell fully electric cars and phase out any car in its global portfolio with an internal combustion engine, including hybrids.
Its decision also builds on the expectation that legislation as well as a rapid expansion of accessible high-quality charging infrastructure will accelerate consumer acceptance of fully electric cars.
Volvo Cars' move towards full electrification comes together with an increased focus on online sales. All fully electric models will be available online only.
The 2030 ambition represents an acceleration of Volvo Cars' electrification strategy, driven by demand for its electrified cars in recent years and a conviction that the market for combustion engine cars is a shrinking one.
"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, CEO of Volvo. "We are fully focused on becoming a leader in the fast-growing premium electric segment."
Volvo Cars launched its first fully electric car, the XC40 Recharge, in markets around the world last year. Recently, the company introduced its second fully electric car, the C40 Recharge.
In coming years Volvo Cars will roll out several additional electric models, with more to follow. By 2025, it aims for 50% of its global sales to consist of fully electric cars, with the rest hybrids. By 2030, every car it sells should be fully electric. Volvo Cars is also committed to an ongoing reduction of its carbon footprint, with the ambition to be a climate-neutral company by 2040.
"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 Cars was founded in 1927. The company has been under the ownership of the Zhejiang Geely Holding since 2010. As of December 2020, Volvo Cars employed approximately 40,000 full-time employees. Volvo Cars head office, product development, marketing and administration functions are mainly located in Gothenburg, Sweden.
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