Volvo Cars, the premium car maker, announced in 2017 that it was going all-electric in every Volvo it will be launching from 2019 onwards. The Chinese-owned Swedish brand is planning to unveil its battery-only second model on Tuesday. It also has a lineup of Volvo electric cars ready and plans to go entirely online for the sale of its Volvos by 2030.
“We choose to invest in the future — electric and online,” Chief Executive Officer Hakan Samuelsson said. “We are fully focused on becoming a leader in the fast-growing premium electric segment.”
Volvo Cars bets big on death of petrol cars
Volvo has been selling cars online as part of its Care by Volvo subscription offering since 2016. The Care by Volvo concept has been expanded to include outright sales, maintenance, roadside assistance, and insurance. All online purchases will be completed at a non-negotiable fixed price through Volvo’s own website, while dealers remain as part of the sales, service and delivery process, Volvo said.
“This is about building customer relationships together,” Samuelsson said. “We need to have a combination of face to face customer relationships” and “very powerful digital tools and care centers.”
As part of its new commercial strategy, Volvo Cars will invest heavily in its online sales channels, and radically reduce complexity in its product offerings.
“The future of Volvo Cars is defined by three pillars: electric, online and growth,” says Lex Kerssemakers, head of global commercial operations. “We want to offer our customers peace of mind and a care-free way of having a Volvo, by taking away complexity while getting and driving the car. Simplification and convenience are key to everything we do.”
Volvo is following rivals, including Jaguar Land Rover, General Motors Co. and Volkswagen AG’s plans launch electric vehicles.
We are determined to be the first premium car maker to move our entire portfolio of vehicles into electrification. This is a clear commitment towards reducing our carbon footprint, as well as contributing to better air quality in our cities.
Håkan Samuelsson
President and CEO, Volvo Car Group
Recently, Volvo Cars and Geely Automobile holdings Ltd., both owned by Zhejiang Geely Holding Co., abandoned merger plans in favor of collaborating by sharing vehicle platforms, software stacks and advanced connectivity to quicken the pace of development. The pair plan to hive off their powertrain activities into a separate unit.
The companies agreed to pursue new growth opportunities in their respective markets and meet evolving industry challenges through deeper cooperation while preserving their existing separate corporate structures.
The announcement underlines Volvo Cars’ commitment to minimizing its environmental impact and making the cities of the future cleaner. Volvo Cars is focused on reducing the carbon emissions of both its products as well as its operations. It aims to have climate-neutral manufacturing operations by 2025.
For the moment, Volvo has only one fully electric model under its own brand name on the market, the compact crossover XC40 Recharge. In addition, Polestar, which Volvo and Geely jointly own, launched its challenger to Tesla Inc.’s Model 3 in 2019.
Volvo has committed to putting 5% of its revenue in the research and development of the new breed of EVs and hybrids. According to Samuelson, the company sold more than 660,000 cars last year and reported full-year revenue of 263 billion Swedish kronor ($31.2 billion).
A century after the invention of the internal combustion engine, electrification is paving the way for a new chapter in automotive history.
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