All Volvos to be All Electric
Volvo Cars substantially upped its game today with the announcement that the company intends to sell only fully electric cars by 2030 and phase out any car in its global portfolio with an internal combustion engine, including hybrids.
In 2017, Volvo committed to offering some type of electrification across its entire portfolio, which would include plug-in hybrids as well as 48-volt mild hybrids that do not plug in at all. While that earlier commitment was a big step in the right direction, by dispensing with internal engines altogether today’s announcement is orders of magnitude more significant. And in a demonstration of this new commitment, Volvo today is launching its second fully electric car, the C40 Recharge.
Charging Infrastructure is Key
Particularly noteworthy in Volvo’s news release is that the company’s decision to go fully electric is predicated “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.”
By 2025, Volvo aims for 50 percent of its global sales to consist of fully electric cars, with the rest hybrids. By 2030, it expects every car to be fully electric. “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.”
The company is also broadening the package of services offered with new vehicles. When buying an electric Volvo online, it will come with a convenient care package that includes items such as service, warranty, roadside assistance, as well as insurance where available and home charging options.
Sales to be Online Only, Supported by Retail Locations
Another major and related announcement is a heavy investment in online sales channels, reduced complexity in product offerings, and transparent and set pricing models. And, taking a page from Tesla, all fully electric Volvos will be available online only. That said, showrooms are not going away; the company says that its retail partners will remain a crucial part of the customer experience and will continue to be responsible for a variety of important services such as selling, preparing, delivering and servicing cars.
Subscription Service to be Expanded
Care by Volvo, until recently known as the name for Volvo Cars’ subscription service, will be expanded into a broader customer offer and is expected to include service, warranty, roadside assistance, as well as insurance where available and home charging options. “The future of Volvo Cars is defined by three pillars: electric, online and growth,” says Lex Kerssemakers, head of global commercial operations. “We want to offer our customers peace of mind and a care-free way of having a Volvo, by taking away complexity while getting and driving the car. Simplification and convenience are key to everything we do.”