Volvo Sets Sustainability Goals
Volvo’s Transition to Electric Cars
Yesterday, Volvo announced that it plans to stop selling fossil fuel-powered cars by 2030. By 2025, the company wants half of its sales to be electric cars and the other half to be hybrid vehicles.
In just four years the company will no longer sell vehicles powered by only gasoline or diesel. “There is no long-term future for cars with an internal combustion engine,” said Volvo’s Chief Technology Officer Henrik Green in a statement.
A Growing Trend
Volvo’s ambitious goals reflect a growing trend in the auto industry. Carmakers around the world are responding to pressures from governments and consumers to offer sustainably-powered vehicles. Volvo is based in Sweden and many of its customers are European. The EU government is at the forefront of passing regulations to limit pollution from vehicles.
Legacy US carmakers are also working to make sure they stay relevant as the market changes. Ford (F) said that by 2030 it will only sell electric passenger cars in Europe. General Motors (GM) said that by 2035 it plans to sell only emission-free vehicles worldwide.
Keeping Up With Tesla
Volvo is also planning major investments in online sales. By the time it makes the transition to all electric vehicles, it also aims for all its sales to take place online. As part of this initiative, it will make its product offerings less complex and will make its pricing more transparent.
These techniques are similar to strategies used by Tesla (TSLA), which only sells its cars online. Tesla is building its first factory in Europe outside of Berlin, with the plant scheduled to begin production later this year. Volvo and other carmakers want to stay competitive with Tesla in Europe and around the world.
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