Volvo has apparently set the boldest target for itself yet as it has decided to fit electric motors in every car that rolls out of its factory starting in 2019. All electric cars manufactured by Volvo will be either plug-in hybrids or mild hybrid models.
Volvo to electrify every model starting in 2019
Volvo Cars Chief Executive Hakan Samuelsson said in a statement, “This announcement marks the end of the solely combustion engine-powered car.”
This is a historic move, as Volvo will no longer offer internal combustion engine-powered vehicles. The automobile manufacturer referred to the move as “placing electrification at the core of its future business.”
Michele Ragazzi's Giano Capital returned 1.9% for March, taking the fund's year-to-date performance to 1.7%. Since its inception, Ragazzi's flagship fund has produced a compound annual return of 7.8%. According to a copy of the €10 million fund's March update, a copy of which ValueWalk has been able to review, Giano's most significant investment at Read More
Further, the Swedish automobile maker stated that there will be five pure electric cars launched between 2019 and 2021. Of them, three will come from Volvo’s brand, and the other two will be from Polesta, its performance brand. The company also stated that every model will have at least one electric version. More details on these models will be announced later.
Volvo is also looking to ramp up its Polestar business into a standalone brand to focus only on high-performance electric cars in order to compete with the likes of Mercedes-AMG and Tesla.
Samuelsson stated that demand for electrified cars is on the rise; therefore, Volvo has decided to respond to its customers’ current and future needs. By 2025, Volvo is looking to sell a total of 1 million electrified cars.
“When we said it, we meant it. This is how we are going to do it,” Samuelsson said.
How Volvo plans to switch to electrified cars
After being acquired by Chinese automotive giant Geely from Ford, Volvo has ramped up its investment in EV technology, making a distinctive place for itself in the premium auto market. Since being acquired by Geely, the automaker has posted a 67% increase in net profit to 7.5 billion Swedish kronor ($880 million) in 2016 on revenue of 180.7 billion kronor, up 10% from the previous year.
Volvo will offer a 48-volt hybrid system in 2019 to support diesel or petrol engines in a car with the help of a small electric motor. The company stated that the system will mean a better driving experience for car owners along while also being more environmental-friendly.
As of now, Volvo has plug-in hybrids cars that run on the T-8 powertrain and get power from electric motors and internal combustion engines. The system was designed to support big six- or eight-cylinder engines, notes DriveSpark. Earlier this year, there were reports that Volvo was looking to develop a smaller twin-engine setup which can be used in 4-cylinder cars.
Although Tesla is the world leader when it comes to electric engines, major automakers such as BMW are also working on electric cars. Nearly all prominent automakers are investing in electric cars, but the actual challenge is to drop the products on the market at the right time. The auto industry has long product cycles and involves years of research and development before vehicles roll off the assembly lines.