Daily Management Review

Volvo Joins The Race Towards Electrification By 2030


It is going to cost the auto makers more to turn their vehicles into electric ones.

Volvo has decided to turn its “entire car lineup” 100% electric within the coming decade. Keeping 2030 as the aim, the company will be part of the trend wherein more and more auto manufacturer plan to “phase out fossil-fuel engines by the end of this decade”.
In the words of the chief executive of Volvo, Håkan Samuelsson:
“I am totally convinced there will be no customers who really want to stay with a petrol engine. We are convinced that an electric car is more attractive for customers.”
The Swedish auto manufacturer informed that half of its global sales are likely to turn 100% electric by 2025 while the rest will turn to “hybrid models”. Volvo’s owner is “Zhejiang Geely Holding Group” based out of Hangzhou, while the former informed that it will be launching a “new family of electric cars in the next few years”. This new line of cars will only be available on online platforms.
Furthermore, Samuelsson added that Volvo’s upgrades will feature wireless facility along with “fixes”, pioneered by Tesla Inc. A race seems to be on among auto manufacturers to turn to “zero-emission models” with China and Europe introducing “CO2 emissions targets” along with the possibility of bans on “fossil fuel vehicles” in some countries.
In fact, last month, Ford Motor informed that its Europe will be 100% electric by 2030. Similarly, Jaguar Land Rover of Tata Motors is going to turn its “luxury Jaguar brand” “entirely electric by 2025”, while by 2030 it will turn all its line up into electric. While, Reuters added:
“And last November, luxury carmaker Bentley, owned by Germany’s Volkswagen, said its models would be all electric by 2030”.
It is going to cost the auto makers more to turn their vehicles into electric ones. Moreover, the electric vehicles require “fewer moving parts” as a result, employment in the auto industry is likely to reduce. The chief executive of Volvo is of the opinion that the move towards electrification of vehicles across the industry will mainly “affect engine plants and auto suppliers providing everything from oil filters to fuel injectors and spark plugs”.
In his words:
“Those are a lot of jobs of course. But overall I don’t think there will be a big difference.”