Volvo was, without a doubt, the forerunner in the global rush to electrify its product line-up. But the Swedish Automaker has slammed the brakes on and is abandoning its ambitious goal to be all-electric by 2030.
Volvo, famous for its commitment to safety and innovation, has now admitted to reassessing its future in response to the market shift away from EVs and infrastructure challenges.
This pivot aligns with an industry-wide movement where many legacy automakers such as Volkswagen, Ford, and General Motors (not to mention Toyota) have switched focus.
So why has Volvo decided to make the switch? Is this just a temporary speed bump, a minor hiatus, or is it that EVs are not the answer we were told and thus no longer an inevitability?
In 2017, Volvo became the first major car maker to pledge its future to EVs and launched a range of Hybrid and all-electric models. By 2021, the euphoria around EVs had taken hold, and at that time, Volvo announced that it was committed to becoming an all-EV brand by 2030.
This plan aligned with climate alarmists’ efforts to reduce Carbon Dioxide (you know, the gas of life and the element that we are all made from), and they duly spun off their combustion engine division into a separate company (Aurobay) so that they could focus exclusively on EVs.
But now they find that the early enthusiasm of the Hemp trouser-wearing brigade has not met with wider market acceptance. A recent survey found that at least 55% of any market will still drive an ICE vehicle regardless. One of the biggest challenges remains range anxiety.
Then there is also the thorny question of who builds and pays for the infrastructure. Governments want private companies to do this, but thus far, they have struggled to keep up with demand, especially in areas where the local electricity grid is insufficient to meet the charging demands of EVs.
Then there is the cost of owning one. Without subsidies, they are expensive to buy and depreciate faster than any ICE car. Insurance is higher as well,l and if you do not have your off-road parking space, you have to charge at an expensive public one which will take you about an hour (or three) once you find one that is available and working.
Volvo is now expected to take the middle ground and invest heavily in Hybrid capability. The likes of Toyota, who are currently experiencing a renaissance, have been firmly linked to Hybrids. Of course, Porsche, which has developed its own B-100 fuel source, is fully committed to running with ICE for the foreseeable future.
I doubt EVs are finished, but this latest announcement is a sign that the transition will be a lot slower than people thought. Better infrastructure, lower costs, and improved battery and charging technology are needed before people like me will go EV.
