Volvo has joined Ford, Volkswagen and Mercedes in delaying its 2030 deadline for producing electric-only cars, as demand for EVs slows down.
In 2020 Volvo announced that it would discontinue production of ICEs (internal combustion engines) powered by petrol or diesel in 2030 but its CEO yesterday said the transition to electrification would not "be linear" and the company was remaining "flexible".
"An electric car provides a superior driving experience and increases possibilities for using advanced technologies that improve the overall customer experience," Jim Rowan, CEO of Volvo Cars, said Wednesday in a written statement reported by 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," he said.
"We are pragmatic and flexible, while retaining an industry-leading position on electrification and sustainability."
Volvo now plans to offer a mix of power sources and says between 90 and 100 per cent of its production will comprise electric or plug-in hybrid, with a mix of mild hybrid technology, going forward.
Ford has already scrapped plans for a seven seat SUV in the US to be all-electric and instead will produce the vehicle with a hybrid engine. Volkswagen has also moved towards more plug-in hybrids, with the technology being introduced in two new versions of the Golf.
Mercedes, according to Forbes Magazine, is now employing a more flexible strategy when it comes to IC engines as it "reacts to peaks and troughs" in the market and will delay its EV-only policy beyond 2030.
These moves come at a time when Toyota remains an outlier in the global car industry by adhering to a mainly hybrid strategy and when customers globally are less-inclined to buy EVs - mainly due to their cost and a slow roll-out of EV charging points, particularly fast chargers.
Jim Rowan’s statement coincided with a reveal of the company’s revised XC90, which is a plug-in hybrid and is due in Ireland in November.
The seven-seat SUV has had minor changes, including new front and rear headlights, improved suspension and a significant upgrade to its in-car tech.
The Google-powered touchscreen has been increased in size to 11.2 inches. The home screen will now feature the most common apps and controls - maps, media and phone - on the home screen, thus reducing the steps to move from one to access another.
The upgrade for the touchscreen features will also be provided free for Volvo cars produced since 2020, including the XC40 and the S60
The interior of the XC 90 now features new wood trim and more recycled materials.
Volvo says the car can travel up to 70 kilometres in electric mode and has an overall range of 800 kilometres. It also says its global market research indicates 48 per cent of driving distances for its hybrids is done on electricity alone.
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