Volvo’s Shattered EV Dreams
Volvo was one of the car companies planning to have its fleet entirely made of EVs. That won’t happen. Its new goal is to have most of its fleet be EVs by the end of the decade, but it will likely need to postpone those plans again. The EV market is soft and shows little sign of firming.
According to The Wall Street Journal, “It is clear that the transition to electrification will not be linear, and customers and markets are moving at different speeds of adoption,” Volvo Car Chief Executive Jim Rowan said. The company will fall back, to some extent, on popular hybrids.
VW And Ford Retreat
Volvo joins global manufacturers led by VW and Ford, which have found the demand for EVs is extremely soft, except in China. Local companies, particularly BYD, dominate the Chinese market. BYD will eventually move into the EU and the US. Today, it is blocked by high tariffs. On the day those tariffs are removed, Volvo and every other global car company will face the most difficult competition in their history.
Tesla’s Success
The only car company that has not had the hurdles that Volvo has had is Tesla. Its sales are strong in China, where it has a manufacturing facility. Tesla also has a market share of 49% in the US.
Volvo’s decision mirrors several other retreats from EV plans. And it will not be the last to do so.
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