From the Daily Caller
Irving Klinsky
Contributor
Swedish carmaker Volvo Cars said on Wednesday it would abandon its goal of going all-electric by 2030 as the electric vehicle (EV) market continues to struggle.
The company has announced that it currently aims to have 90% to 100% of its vehicles be fully electric or plug-in hybrids by the end of the decade, with the remainder being “mild” non-plug-in hybrids. Volvo's setback comes amid lower-than-expected consumer demand for electric vehicles and a recent industry shift away from electrification. (Related: Report: $84 billion worth of Biden-subsidized manufacturing projects in trouble)
“While Volvo Cars will maintain its position as the industry leader in electrification, it has now decided to adjust its electrification targets due to changing market conditions and customer needs,” the company wrote. “Strategic adjustments to its electrification targets ensure Volvo Automotive has flexible plans to meet customer preferences and achieve corporate value creation.”
Volvo has abandoned plans to sell only electric cars by 2030 due to falling demand for battery-powered cars.
Another major manufacturer has abandoned plans for electric vehicles. #CostOfNetZero
👉https://t.co/i7qPgRbjLx pic.twitter.com/AMlxhyAKwv
— Net Zero Watch (@NetZeroWatch) September 4, 2024
A Volvo spokesperson told DCNF: “We are and will remain an industry leader in electrification, with nearly half of our global sales being pure electric or plug-in hybrid vehicles.”
The company's shift in strategy comes as the electric vehicle market faces broader challenges, with consumer demand falling short of proponents' expectations and automakers such as Rivian, Ford and General Motors ramping up plans for electric vehicles, according to Fortune magazine. Paint a massive loss of funds.
Ford canceled plans to produce a three-row electric SUV in August, while Mercedes-Benz in February abandoned its goal of launching an all-electric lineup by 2030. Luxury electric car maker Lucid laid off 6% of its workforce in May, equivalent to about 400 employees.
Volvo's announcement on Wednesday was the latest setback for President Joe Biden's goal of having 50% of new U.S. car sales be electric by 2030.
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