Volvo scraps all-EV plan as drivers blast ‘unrealistic’ goals – but company insists ‘electric is still the future’

LUXURY automaker Volvo is walking back plans to electrify its entire lineup of vehicles.

Drivers initially praised Volvo’s reported shift away from its all-electric goals on social media.

Getty

Getty

Getty

Getty

In 2021, Volvo announced plans to electrify its entire lineup of luxury vehicles .

“Volvo Cars is committed to becoming a leader in the fast-growing premium electric car market and plans to become a fully electric car company by 2030,” the company said in a March 2021 statement .

“By then, the company intends to only sell fully electric cars and phase out any car in its global portfolio with an internal combustion engine, including hybrids.”

However, the company changed its stance on Wednesday, saying it would offer a diverse selection of mild hybrids and plug-in hybrid vehicles in addition to its current electric vehicles.

Still, the company claimed it would maintain a pursuit of a future all-electric lineup of cars.

“We are resolute in our belief that our future is electric,” the company’s CEO, Jim Rowan, said, according to Reuters .

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

A Volvo representative did not immediately respond to a request for comment.

Social media car aficionados and investors initially praised the move away from EVs, claiming hybrid tech is the better driving option on current American roadways.

“99% of the ‘fully electric by 2030’ goals by car companies and countries were and still are completely unrealistic and hyperbole,” one investment personality on X wrote in a post.

“Finally, now countries and companies are admitting it publicly.”

Another commenter praised the move to plug-in hybrids, saying, “Improvements [are] required in electrical [sic] vehicles.”

INSIDE VOLVO’S EV OFFERINGS

Volvo has launched a series of EVs in the US and European markets.

The Swedish-designed company, now owned by Chinese manufacturing giant Geely, has three fully electric consumer cars in the US market – the EX90, XC40 Recharge, and C40 Recharge.

All three SUVs are based on platforms from popular gas-powered vehicles.

The company unveiled the design of the EX30, its first EV-only platform vehicle, in 2023.

Executives believed the $36,000 cute-ute EV would reach American roads by 2024.

Electric vehicles vs gas

Pros and cons of EVs vs gasoline-powered vehicles

EV PROS:

• Convenient (when charging at home)
• Cheaper (depending on state or city)
• Cheaper maintenance, due to lack of mechanical parts
• Great for commuting
• Reduced CO2 emissions
• Federal and state tax incentives
• More performance (speed, handling – depending on the make and model)

EV CONS:

• Higher initial cost
• Higher insurance rates
• More frequent tire and brake replacement intervals
• Higher curb weight (thus causing more rapid wear on crucial parts)
• Low resale value
• High depreciation rates
• Lack of charging infrastructure
• Unreliable public charging (related: slow charging times)
• Poor winter and summer performance
• Lack of clean energy alternatives means more “dirty energy” from coal and nuclear sources
• Range anxiety

GAS PROS:

• Highly developed refueling infrastructure
• Fast refueling
• Cheaper insurance rates, depending on make, model, and configuration
• Established repair industry
• Lower initial cost
• Higher range before refueling, especially with hybrids
• Many manufacturers produce nearly emission-less engines
• Cheaper refueling, depending on the location

GAS CONS:

• Finite resource (related: heavy dependence on petroleum)
• Carbon emissions/greenhouse gases
• Higher repair costs
• Higher insurance rates, depending on make, model, and configuration
• Varying costs at the pump, depending on state, city, and county

Source: Car & Driver , Perch Energy , AutoWeek

If the EX30’s base price were to remain the same, it would compete as one of the cheapest electric-powered cars on the US market.

The car boasts a 270-mile estimated battery range.

However, Volvo planned on building the vehicle in its Zhangjiakou, China, factory.

In 2024, the US government imposed 100% tariffs on all Chinese-manufactured EVs, including the EX30.

Volvo delayed plans to launch the EX30 in the US market until 2025 because of “changes in the global automotive landscape,” according to Car and Driver .

The European Union has adopted similar Chinese EV tariffs.

Volvo shifted production of the petite EV to Belgium and began selling the car in Europe.

It is now one of the best-selling EVs in the EU market, with executives saying they’ve received “above-expected order rates.”

Volvo’s EV pursuits also spun out into another all-electric company named Polestar .

But the luxury automaker is lopping off ownership of the EV company.

The Polestar 2 is a performance-based electric hatchback with loads of Volvo-like style.

Polestar is about to release its third and fourth consumer models, both electric SUVs.

Like most nascent car companies, Polestar continues to operate with millions of dollars in quarterly losses.

Volvo has reduced its stake in the company, decreasing it from 48.3% ownership to 18%.