On Wednesday, The Gothenburg-based company plans to launch all Volvo car models electric or hybrids after 2019. The Chinese-owned company plans to make it the first major customary automaker to set a date for phasing out vehicles driven exclusively by the internal combustion engine, though electrification of cars has been long talked about in the industry, Tesla Motors has been always a pure battery operated carmaker from day one.
The Company will continue to manufacture pure combustion engine’s from models launched earlier that date, but said it will introduce cars across its model’s line-up that ranges from fully electric cars to plug-in hybrids.
Volvo’s Chief Executive Mr. Hakan Samuelsson stated that this announcement symbolizes the end of a sole combustion engine-powered car which means there will be no Volvo cars without an electric motor.
According to the announcement, a variety of petrol & diesel plug-in hybrid and mild hybrid 48-volt alternatives will be added on all five models. These new 5 models are set to launch in 2019 to 2021- three branded as Volvos and two Polestar which will all be fully or partially electric.
The automaker additionally strategies to adjust developing technologies which will permit higher performance electric vehicles and additionally, in due course, self-driving autos.
Volvo is not the only among traditional carmakers to start its production into electrics and plug-ins car – or among premium brands in resorting to 48V mild hybrid systems to less fuel consumption and CO2 emissions from their combustion-engine cars. According to last month’s Handelsblatt report, among them, BMW strategies to bring together an electric version of its popular 3rd Series in September to meet the challenge from Tesla.
In June, Volvo stated that it would also redesign its Polestar business into an individual brand, concentrated mainly on high-performance electric cars aimed at competing with Tesla and the Mercedes AMG division.
Heavy investments are already been made in new models and plants meanwhile being bought by Mr. Zhejiang Geely’s Holding Group from Ford Motor Co. in 2010, beginning a niche in the premium auto market which is led by larger rivals such as Daimler’s Mercedes-Benz and BMW.
Volvo is going to undoubtedly raise 5 billion crowns from Swedish institutional financial investors by ending listing, from the offer of recently issued preference shares a year ago. However, the company expresses no decision on an Initial public offering to be made.