Just a few years ago, Volvo Cars boldly declared that, by 2030, it will sell only battery electric vehicles (BEVs). This commitment seemed like a sound one as the auto industry was accelerating towards electrification and Volvo was taking the lead.
But with BEV sales having not met expectations as car-buyers remain hesitant, many automakers have revised their plans to focus only on developing BEVs and are now saying that they will still develop combustion engine models for a while more, and focus on hybrid electric vehicles which seem to be more acceptable.
Volvo probably wanted to remain firm on its commitment but it too has had to face reality and has said that the 2030 target to sell only BEVs is off. It still expects to sell more electrified vehicles, but these will include hybrid electric models as well as those with mild hybrid powertrains. These models still account for some 75% of its current range, so it’s a matter of shifting production.
By 2030, it expects electrified vehicles to represent between 90 – 100% of global sales volumes. The remaining 10% will allow for a limited number of mild hybrid models to be sold, if needed.
Care by Volvo to end
In Europe and North America, the Swedish automaker has also announced another change – the Care by Volvo subscription plan will no longer be offered. The optional subscription program offers customers a 2-year contract where maintenance (including tyre replacements), insurance coverage and digital concierge services were covered from €699 (about RM3,333) a month.
More comprehensive than a traditional leasing program, Care by Volvo also allowed owners to upgrade to a new Volvo every 12 – 24 months. It also requires no downpayment and no balloon payment at the end of the contract.
Care by Volvo was introduced 6 years ago and was partly related to the shift towards EVs by Volvo. The idea was to make ownership more convenient as explained by Thomas Andersson then a Vice-President at Volvo Cars: “Time is a luxury for our customers so we developed care by Volvo so that they can enjoy their life and their car – and we take care of the rest.”