Volvo Cars has set an ambitious goal to sell only battery-powered cars by 2030, accelerating its plans after electric vehicle sales surged.
The company is launching a new range of electric cars and will unveil its second battery-powered model this week. Taking a step further than recent decisions by its EV rivals, Volvo's electric vehicles will be available for sale only online, the company said in a statement.
“We choose to invest in the future – electric and online,” said CEO Hakan Samuelsson.
Volvo's move follows moves by rivals Jaguar Land Rover, General Motors Co. and Volkswagen AG all announcing a slew of changes.
Volvo has previously said it will spend about 5% of annual revenue on research and development, and that amount will be enough to fund the EV division, Samuelsson said. The company sold more than 660,000 cars last year and reported full-year revenue of 263 billion Swedish crowns ($31.2 billion).
By 2025, Volvo expects half of the cars it sells to be fully electric and the other half to be hybrids, including so-called mild hybrids that don't have a plug. Volvo sells cars online as part of its Care by Volvo subscription.
The Care by Volvo subscription concept will now be expanded to include complete sales, with a package for maintenance, roadside assistance and insurance. All online purchases will be completed at a non-negotiable fixed price through Volvo's website , while dealers remain part of the sales , service and delivery process, Volvo said.
Information source: bloomberg.com
