Volvo has abandoned its goal of becoming a fully electric carmaker by 2030 due to declining demand for battery-powered vehicles.
The Swedish automaker attributed this shift to changing market conditions, noting that many consumers still favor petrol and diesel cars. Major car manufacturers are facing challenges with slowing electric vehicle demand, driven by the high cost of electric models and the slow expansion of charging infrastructure.
Volvo’s CEO, Jim Rowan, stated, “We firmly believe that our future is electric. However, it’s evident that the path to electrification will be uneven, with varying speeds of adoption across customers and markets.”
The company, which is majority-owned by China’s Geely Holding, is also preparing for the impact of European tariffs on electric cars produced in China.
This decision marks a change from Volvo’s previous commitment to a fully electric lineup by 2030. Instead, the company now aims for 90% to 100% of its sales to consist of fully electric or plug-in hybrid models by the end of the decade. Additionally, up to 10% of sales may include a limited number of mild hybrid models if necessary.
Volkswagen European sales collapse
Volkswagen faces a critical year to address plummeting sales in Germany, according to its finance chief, who hinted at the potential closure of a factory in its home market for the first time in 87 years.
Arno Antlitz, Volkswagen’s CFO, informed employees at the company’s Wolfsburg headquarters that they have “a year, maybe two” to overhaul the business.
Daniela Cavallo, head of the company’s works council, labeled the threat of closures as a “declaration of bankruptcy.”
Antlitz noted that Volkswagen now anticipates selling about 500,000 fewer cars annually in Europe, equivalent to the output of roughly two car plants. “We have a year, maybe two, to turn things around,” he said at a staff meeting. “But we need to make the most of this time.”
The meeting saw around 16,000 employees, some of whom carried banners and chanted “Auf Wiedersehen,” expressing their discontent as executives, including Antlitz, delivered prepared statements.
