Key Takeaways
Volvo is reconsidering full electrification due to an EV sales slump in key markets like the US and China. CEO Jim Rowan reconfirmed his belief in EVs but acknowledges it will take time to bridge different parts of the world. Dealers express concern about Volvo’s strategy, with some expecting hybrid vehicles in the lineup beyond 2030.
Volvo was among the first automakers to announce a full battery-electric vehicle (BEV) lineup by the end of the decade, but it seems like the Swedish automaker is reconsidering the drastic move as it faces an EV sales slump in its key markets, namely the US and China. In an investor webcast, Volvo CEO Jim Rowan reconfirmed his belief in EVs but admitted that it will “take time to bridge different parts of the world for full electrification,” Automotive News reports.
Base MSRP $76,695
Horsepower 496 hp
Torque 671 lb-ft
Drivetrain All-Wheel Drive
Curb Weight 6,213 pounds
“Our plug-in hybrids and mild hybrids remain very strong and popular with our customers, and we will continue to invest in this lineup,” Rowan said, acknowledging that some customers are still not ready for full electrification.
American Dealers Say
While Rowan may be softening up with its hard stance on full electrification by 2030, American dealers have expressed concern about the strategy. Speaking to Automotive News, US Volvo dealers expect hybrid vehicles in the lineup beyond 2030. “We will have to, or we will die,” an unnamed dealer told the publication.
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Meanwhile, an unnamed source told Automotive News that Volvo’s strategy for the next decade will include PHEVs as it waits for markets like the US to mature in terms of EV demand. The same person added that Volvo is “keeping their fingers crossed” that governments will change their stance on PHEVs, presumably referring to strict emission regulations.
Problematic Volvo EVs
While the automaker’s sales in the US during the first half of 2024 are down by 28.1%, the demand for plug-in hybrid Volvos has been strong. It went up by 75% compared to the same period last year, but when BEV sales are factored in, Volvo reported a decrease of 12.6% compared to the first half of 2023.
Related Volvo Crashed An EX90 Into An EX30 To See What Happens When Safety Tech Fails
They escaped mostly unscathed because, you know, they’re Volvos.
However, demand for electric models may be the least of Volvo’s current concerns. Its full electric lineup in the US has yet to expand; the models currently sold are the aging C40 Recharge and XC40 Recharge, while the EX90 and EX30 have yet to reach customers’ hands. The EX90 has already started production in South Carolina, though owners might receive the flagship EV without some key features. Meanwhile, the EX30 continues to face issues outside the US, leading to owners returning their cars and asking for a refund.
Source:
Automotive News