Volvo promises to be fully electric by 2030, says goodbye to traditional dealership model
Volvo Cars is the latest company to take their commitment to electric powertrains to a new level. Unlike other automakers, like Land Rover who is promising an electric option for its model lineup, Volvo is planning to make their whole lineup electric by 2030.
This means that there will only be all-electric cars and SUVs in its global portfolio and all internal combustion engine and hybrid models will be phased out. By 2025, it aims for 50 percent of its global sales to consist of fully electric cars, with the rest hybrids. By 2040, the company hopes to be carbon neutral. Nissan has similar goals.
The Volvo XC40 is currently offered as an all-electric model.Photo courtesy of Volvo Cars
Additionally, the brand is rolling out a new commercial strategy that will have them invest heavily in online sales channels in a move to reduce the complexity of its product offerings and set pricing on models, eliminating bargaining at the point of sale, something that the Saturn brand was known for. Via VolvoCars.com buyers will be able to choose from pre-configured electric Volvos that are ready for ordering and quick delivery.
"The future of Volvo Cars is defined by three pillars: electric, online and growth," says Lex Kerssemakers, Head of Global Commercial Operations at Volvo Cars. "We want to offer our customers peace of mind and a care-free way of having a Volvo, by taking away complexity while getting and driving the car. Simplification and convenience are key to everything we do."
Customer offerings will all be housed under one brand, Care by Volvo, which was, until now, the name of the company's subscription service platform.
Dealerships and sales associates still factor into the company's plans. That's good, because many states require new car sales to occur only though an authorized dealership, a point of contention for emerging brands due to the expense and logistic annoyance of establishing a dealer network. Dealerships will be tasked with "a variety of important services such as selling, preparing, delivering and servicing cars" according to a release.
"Online and off-line need to be fully and seamlessly integrated," added Lex Kerssemakers. "Wherever the customer is in their journey – online, in a showroom, in a Volvo Studio, or driving the car – the customer experience needs to be top-notch."
The purchase of an electric Volvo will include a package of traditional extras including service, warranty, roadside assistance, insurance (where available), and home charging options. Sans the insurance, many electric vehicle manufacturers offer these extras already.
"There is no long-term future for cars with an internal combustion engine," said Henrik Green, Chief Technology Officer at Volvo Cars. "We are firmly committed to becoming an electric-only car maker and the transition should happen by 2030. It will allow us to meet the expectations of our customers and be a part of the solution when it comes to fighting climate change."