Volvo, the Swedish carmaker has pledged to shift all of its production to electric cars by 2030 in a move aimed to shun fossil fuels and help in the climate change fight. The company also said that it would just sell its electric cars direct to its clients online. That will be a blow to the traditional model of selling vehicles through independent dealerships.
In the past, Volvo aimed for 50% of its sales to be electric by 2025. But on March 2, 2021, the company confirmed that its new strategy would be an ‘acceleration’ of plans to get rid of the internal combustion engine sales entirely.
According to CEO Håkan Samuelsson, the company does not want to get stuck producing a shrinking market for diesel and petrol cars. He added:
“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.”
Volvo unveiled its first fully EV in 2021, the XC40 Recharge. It is scheduled to launch a new electric 40 Series this week.
For last year, the company met European Union-mandated emission targets, and it sold off emission credits to Ford for an amount that was not disclosed. The firm recorded its best-ever profit margins in the second half of 2021, supported by the Chinese market that made a significant rebound from the drop in sales caused by the coronavirus health crisis.
Volvo will try to catch up with others like Tesla that have gained some ground in the new market.