Volvo Goes All-In With Electric Drivetrains

Graphic showing Volvo pure electric vehicle

Buying an electric Volvo will soon become a lot easier. Volvo Cars announced today that, starting in 2019, every model the company launches will have an electric motor. This is, without a doubt, a big step for a large and influential automaker with a global footprint, though today’s announcement does not mean that every vehicle in the lineup will be fully electric, or that internal combustion engines are going away immediately. Rather, all new models will be equipped with some form of electrified drivetrain, whether it be 48-volt mild hybrid, plug-in, or fully-electric. Then, as the company’s gasoline-only portion of the lineup is redesigned or retired, there will be no more purely gasoline-powered vehicles.

“This is about the customer,” said Håkan Samuelsson, president and chief executive. “People increasingly demand electrified cars and we want to respond to our customers’ current and future needs. You can now pick and choose whichever electrified Volvo you wish.”

While many customers do, indeed, seek out various types of electric drivetrains, Volvo’s decision to include electric technology as a default recognizes that selling electric as an option is challenging because most customers will not step out of their comfort zone or pay extra for the new technology. Taking away the option eliminates the need for customers to make a proactive decision and simplifies sales staff training while improving fuel economy and reducing carbon emissions.

Volvo’s portfolio will include a variety of electric technologies, each of which will improve fuel economy and reduce carbon emissions while at the same time supporting the power-hungry infotainment systems customers crave. Some models will be equipped with 48-volt mild hybrid systems, while others will be plug-in hybrids. Five vehicles, to be launched between 2019 and 2021, will be fully electric with no gasoline engine at all. Of these five, two will be high performance vehicles from Polestar, Volvo Cars’ performance car arm.

The announcement by Volvo represents one of the most significant moves by any car maker to embrace electrification and highlights how, more than a century after the invention of the internal combustion engine, electrification is paving the way for a new chapter in automotive history. That this momentous announcement comes from Volvo is not entirely surprising considering (1) Volvo’s strength in Europe, where emissions standards are becoming increasingly stringent, and (2) that Volvo is owned by Geely, the Chinese automotive giant which needs to keep up with rapidly increasing demand for electric drivetrains in China as shown in the following graph:

Mariordo (Mario Roberto Durán Ortiz) • CC BY-SA 4.0

“This announcement marks the end of the solely combustion engine-powered car,” said Mr. Samuelsson. “Volvo Cars has stated that it plans to have sold a total of one million electrified cars by 2025. When we said it we meant it. This is how we are going to do it.”

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