Electric Vehicles

Volvo promises to be fully electric by 2030, says goodbye to traditional dealership model

Volvo is transitioning to an all-electric lineup.

Photo courtesy of Volvo Cars

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.

Volvo XC40The Volvo XC40 is currently offered as an all-electric model.Photo courtesy of Volvo Cars

Volvo XC40

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.

Volvo online ordering and financing process

Volvo online ordering and financing process screenshot

Photo courtesy of Volvo Cars

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"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."

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Volvo will install 60 ChargePoint chargers at Starbucks locations in the west and Northwest.

Volvo

Volvo plans to be an electric-only automaker by 2030, and along the way to that goal, the automaker is investing in services and infrastructure to support its vehicles. Today, Volvo announced a partnership with coffee giant Starbucks that will provide dozens of chargers at coffee shops in the west and northwest U.S.

As part of the deal, Volvo will install up to 60 company-branded chargers at up to 15 Starbucks stores on the route between Denver and Seattle. Volvo says it aims to install charging locations every 100 miles along the 1,350-mile route between the Mile-High City and Starbucks hometown of Seattle.

Volvo-Starbucks PartnershipVolvo's goal is to install a charger every 100 miles. Volvo

Though they'll have Volvo's name on the front, the chargers are from ChargePoint, and drivers will use a built-in ChargePoint app to access services. The function is available in the vehicle's infotainment system, and will help locate and use the chargers. Volvo says all EV drivers will be able to access the chargers for a fee, but notes that its owners will get free or discounted charging.

A Volvo-Starbucks partnership isn't as crazy as it sounds at first. Beyond the fact that there's likely quite a bit of overlap in both brands' customers, the move furthers Starbucks' sustainability goals and provides Volvo owners with a free or low-cost charging solution. The project should be done by the end of this year, so keep your eyes open if you're getting coffee in a Volvo EV in the area.

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The majority of new car buyers paid a markup in January 2022.

VW

It's no secret that new car prices are climbing every year, as new technology and features make their way into even the most basic models. The issue is compounded by massive supply chain issues that have caused vehicle shortages for nearly every major automaker. Some dealers are taking advantage of record low inventory levels by marking up prices, and unfortunately, the problem isn't limited to a handful of bad apples. In analyzing recent sale price data, automotive publication Edmunds found that buyers paid a markup in a whopping 82.2 percent of all new vehicle purchases in January 2022, compared to just 2.8 percent a year before. Overall, the average transaction price rose to $728 above MSRP for new car purchases.


Tesla factoryTesla is looking to expand production in the U.S. beyond the confines of its Fremont factory. Photo courtesy of Tesla Motors

Cadillac buyers saw the largest markups, to the tune of $4,048 on average in January. Land Rover and Kia weren't much better, with average markups of $2,565 and $2,289, respectively. On the other end of the spectrum, Alfa Romeo buyers got discounts that averaged $3,421, while people who bought Volvo or Lincoln vehicles got smaller discounts of $869 and $510, respectively.

Some automakers have taken a stand against dealer markups and the general lack of transparency seen in pricing across the board. Ford and General Motors have been vocal in recent months, threatening to withhold inventory from dealers found to be slapping markups on new vehicles. As Edmunds notes, both automakers have important vehicle launches on the horizon that neither can afford to flub, and inconsistent pricing or markups is a good way to alienate new customers out of the gate.


Cadillac EscaladeCadillac buyers paid the largest markups of any brand. Photo courtesy of Cadillac

If you're thinking of shopping for a new car, the best way to avoid paying a markup is to wait. The pandemic and ongoing supply chain issues have thrown kinks into every automaker's operations that will take time to iron out. That said, it's clear that some brands are committed to having no funny business when it comes to dealerships' pricing and communication. It's possible to get a vehicle at MSRP, or even below in some cases, so if you're in a position that requires you to buy a new car, shop around to get the best deal.

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