Volvo’s entire car lineup will be fully electric by 2030, the Chinese-owned company said on Tuesday, joining a growing number of carmakers planning to phase out fossil-fuel engines by the end of this decade.
“I am totally convinced there will be no customers who really want to stay with a petrol engine,” Volvo Chief Executive Håkan Samuelsson told reporters when asked about future demand for electric vehicles. “We are convinced that an electric car is more attractive for customers.”
Automakers are racing to switch to zero-emission models as they face CO2 emission targets in Europe and China, plus looming bans in some countries on fossil fuel vehicles.
Last month, Ford Motor Co said its range in Europe will be all-electric by 2030, while Tata Motors unit Jaguar Land Rover said its Jaguar luxury brand will be all-electric by 2025 and the automaker will launch electric models of its entire range by 2030.
And last November, luxury car maker Bentley, owned by Germany’s Volkswagen, said its models will be all-electric by 2030.
Electrification is expensive for automakers, and because electric vehicles have fewer moving parts, employment in the auto industry is expected to decline.
Volvo CEO Samuelsson said that across the industry, electrification will especially affect engine plants and auto suppliers that make everything from oil filters to fuel injectors and spark plugs.
“Those are obviously a lot of jobs,” he said. “But overall, I don’t think there will be a big difference.”
Volvo said it will “radically reduce the complexity” of its model lineup and provide customers with transparent pricing. The automaker’s global network of 2,400 traditional dealers will remain open to service vehicles and help customers place orders online.
So far, Volvo has not been affected by the global shortage of semiconductor chips that has shut down a growing number of assembly plants. According to Samuelsson, this is due to ongoing communication with suppliers.
The Swedish carmaker said 50 percent of its global sales should be fully-electric cars by 2025 and the other half hybrid models. Owned by Hangzhou-based Zhejiang Geely Holding Group, Volvo will launch a new family of electric cars in the next few years, all of which will be sold online only. Volvo will unveil its second all-electric model, the C40, later on Tuesday.
Samuelsson said Volvo will include wireless upgrades and fixes for its new electric models – an approach pioneered by electric carmaker Tesla Inc.
Volvo bets on death of petrol cars and goes all-electric by 2030