Swedish carmaker Volvo has abandoned its goal to pivot toward an all-electric product line as demand for electric vehicles (EVs) plunges.
The company made this announcement on Sept. 4, citing “softening demand for pure battery-powered cars” as per Euronews. Before the announcement, Volvo had already laid out its ambitious goal of becoming an all-electric car manufacturer by 2030. This decision highlights the ongoing challenges facing the automotive industry as it navigates the transition to electric mobility.
Volvo originally sought to phase out gasoline-powered vehicles entirely, focusing solely on EVs by the end of the decade. But now, it plans for 90 to 100 percent of its global sales to come from electrified vehicles by 2030. This new target includes a mix of fully electric vehicles and plug-in hybrids, with the possibility of maintaining a small percentage of mild hybrid models, if necessary.
Volvo’s shift in strategy is not without consequences. Following the announcement, the company’s stock fell over four percent – adding to a 12 percent decline over the past six months. This comes after Volvo reported weaker-than-expected earnings for the first quarter and offered cautious guidance during its second-quarter earnings call. […]
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