Volvo is the first major auto maker to ditch conventional engines after more than a century to go fully electric. The company announced that they would soon start phasing out the old technology and that all its cars would be either Electric Cars (EV) or hybrids by 2019.
Volvo Cars chief executive Hakan Samuelsson said that it is time to end the era of solely combustion engine powered cars. His firm wants to sell one million EVs by 2025.
Also, the company plans to roll out five new models of EVs and hybrids from 2019 to 2021. Two of those models would be the work of Polestar, a separate unit focused on high performance. Volvo Cars would manufacture the rest of the models.
Volvo is not the only major car maker to make the shift to electric. The companies only need to get their timing right as research and product cycles usually take a long time.
Electric Cars Could Cost Less than Conventional Cars to Produce
The industry eyes a so-called “tipping point” when it would be cheaper to produce an EV than a conventional car. At that time, electric cars could finally go mainstream. Industry experts also think that making conventional cars would be pricier because traditional engines need to meet strict emissions regulations and more research. This could make EVs affordable by 2025.
Tesla Motors’ most popular model is Model 3 with a starting price of $35,000. Model 3 is just slightly costlier than BMW’s 3 Series Sedan which sports conventional combustion engines.
Volvo thinks that the decision to go fully electric could help it ahead of a stock listing. The company was founded in 1927 in Sweden as a luxury car maker. Seventy-two years later, it was bought by U.S.-based Ford Motor which sold it to a Chinese investment group, Geely Holding Group, in 2010.
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