The target image was set in 2021 under the then CEO Håkan Samuelsson's management. The intention was then to phase out all cars with combustion engines – including hybrids – in favor of electric cars.
However, the market for electric cars has changed significantly in recent years. The competition has intensified while consumer costs have risen as higher interest rates have made it more expensive to privately lease cars. A question mark was also raised about electric cars when inflation soared in connection with the Ukraine war and electricity prices rose sharply. Moreover, various government subsidies such as climate bonuses have been adjusted downwards or removed.
Changed target
Volvo Cars is therefore announcing that the target is for 90-100 percent of the global sales volume in 2030 to consist of electrified cars.
"The rollout of charging infrastructure has been slower than expected, government incentives have been withdrawn on certain markets, and further uncertainty has been created by the latest tariffs on electric cars on different markets," the company motivates its decision.
However, the company's CEO Jim Rowan maintains that the company's focus is fully on electric cars, but also sees future challenges:
"It is clear that the transition to electrification will not be linear, and customers and markets are moving at different speeds," he writes in the press release.
Weakened stock trend
Volvo Cars was listed on the Stockholm Stock Exchange in October 2021, but the listing has not been a success story, rather the opposite. The introduction price was set at 53 kronor, and now almost two years later, the stock is trading around 27 kronor, i.e., a halving.
Today's announcement has initially no major effect on the stock, which is clearly down since the stock market's opening – minus 4.6 percent.
