Sweden’s Volvo Cars scraps plan to only sell electric vehicles by 2030

Sweden’s Volvo Cars scraps plan to only sell electric vehicles by 2030


The chip shortage took its toll on the auto industry, which has become increasingly reliant on semiconductors.

Mikael Sjoberg | Bloomberg | Getty Images

Swedish automaker Volvo Cars on Wednesday abandoned its near-term goal of only selling electric vehicles, citing a need to be “pragmatic and flexible” amid changing market conditions and cooling demand.

Volvo Cars, which is owned by China’s Geely Holding, had been among the first legacy carmakers to promise a complete switch to EVs. The firm said it’s long-term aim remains to become a fully electric carmaker.

However, the company announced that by 2030 it now aims for between 90% to 100% of its cars sold to be fully electric or plug-in hybrid models, while up to 10% will allow for a limited number of mild hybrid models.

The target replaces a 2021 pledge for Volvo Cars’ line-up to be fully electric by the end of the decade.

The move means Volvo Cars follows in the footsteps of other industry players in scaling back its EV ambitions. Germany-based carmakers Mercedes-Benz Group and Volkswagen have both previously announced a shift in their respective EV strategies.

“An electric car provides a superior driving experience and increases possibilities for using advanced technologies that improve the overall customer experience,” Jim Rowan, CEO of Volvo Cars, said on Wednesday in the written statement.

“However, it is clear that the transition to electrification will not be linear, and customers and markets are moving at different speeds of adoption,” he continued.

“We are pragmatic and flexible, while retaining an industry-leading position on electrification and sustainability.”

Shares of Volvo Cars traded more than 6% lower on Wednesday.



Source

Pentagon halts weapons shipment to Ukraine amid concerns over U.S. stockpile
World

Pentagon halts weapons shipment to Ukraine amid concerns over U.S. stockpile

Defense Secretary Pete Hegseth has ordered a pause in sending a shipment of missiles and ammunition to Ukraine amid concern about the U.S. military’s stockpiles, according to two defense officials, two congressional officials and two sources with knowledge of the decision. Hegseth ordered the delay weeks after he issued a memo ordering a review of […]

Read More
Santander doubles down on UK presence amid Spain’s banking M&A turmoil
World

Santander doubles down on UK presence amid Spain’s banking M&A turmoil

A sign hangs from a branch of Banco Santander in London, U.K., on Wednesday, Feb. 3, 2010. Simon Dawson | Bloomberg via Getty Images In one move, Santander has silenced months of speculation over it’s allegiance to the British high street – and complicated a year-long consolidation saga in Spain’s banking sector. On Tuesday, Spain’s […]

Read More
CNBC’s The China Connection newsletter: A slowing economy meets a fast future
World

CNBC’s The China Connection newsletter: A slowing economy meets a fast future

Employees at a coal mine in China’s Shaanxi province sit in an office to use digital systems for mining work, according to a photo taken on April 26, 2023, during a media tour organized by Chinese telecoms giant Huawei. Wang Zhao | Afp | Getty Images This report is from this week’s CNBC’s The China […]

Read More