It is not without reason that Volvo Cars has changed its future plans, but it is because the demand for electric cars has dropped drastically worldwide.
The brand is not alone in doing so and Volvo is only one of several car manufacturers that have changed plans.
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An ambitious goal
The promise, to sell only electric cars from 2030, has been the market’s most ambitious. Volvo Cars now believes that changed market conditions mean that the strategy needs to be reconsidered.
The new goal is for 90 percent of global sales to consist of electrified cars, i.e. plug-in hybrids and electric cars. Previously, plug-in hybrids were not part of the equation.
Up to 10 percent must therefore consist of mild hybrids, i.e. petrol cars.
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Volvo Cars has torn up its promise of electric cars. Changed plans
Volvo Cars no longer has a fixed year for when sales will only consist of electric cars.
– We are firmly convinced that our future is electric, says Volvo Cars CEO Jim Rowan.
-However, it is clear that the transition to electrification will not be linear and customers and markets move at different speeds. We are pragmatic and flexible, while maintaining an industry-leading position in electrification and sustainability, he continues.
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Increasingly revised
In addition to the share of electric cars in sales, Volvo Cars has also revised the target for carbon dioxide emissions per car sold. The target was previously a 75 percent reduction compared to 2018. Now the figure is instead between 65 and 75 percent.
That said, Volvo Cars is not alone in taking a step back in terms of electrification, but it is something that affects investors as well as consumers.
The stock has retreated by a number of percent, which is due to both initial reviews of the Volvo EX90 and the fact that the electric car promise has been torn up.
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