Volvo Aims To Sell 1 Million Electrified Car By 2025 (~Twice The Tesla Model 3 Reservation Backlog)

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Originally published on EV Obsession.

Volvo Cars will be working towards the goal of selling up to 1 million “electrified” cars by the year 2025, according to a new press release from the Swedish company.

“Electrified” cars in this case apparently refers to hybrids as well plug-in hybrids (PHEVs) and all-electric vehicles (EVs). The company’s plans to achieve the goal calls for the offering of at least 2 hybrid versions of every model in the company’s model-range.

Volvo

“It is a deliberately ambitious target,” stated Håkan Samuelsson, president and CEO. “It is going to be a challenge, but Volvo wants to be at the forefront of this shift to electrification.”

Here’s more from the press release:

Volvo Cars has been readying itself for the emergence of electrified vehicles for the last five years. It has developed two all new vehicle architectures for larger and smaller cars — Scalable Product Architecture (SPA) and Compact Modular Architecture (CMA) — that can incorporate either hybrid or fully electric car technology. Its larger 90 series and 60 series cars are to be built on SPA, and it will soon launch a global range of smaller 40 series cars on CMA. All of these cars will have electrified versions. The 1 million electrified car target is a cumulative total.

The new electrified car pledge forms part of a wide ranging review of Volvo’s strategic sustainability programme announced today that contains several new commitments that place sustainability at the centre of its future business operations. The new commitment has been christened ‘omtanke’, which is a Swedish word that means ‘consideration’ or ‘caring’.

The company is also working to achieve “climate neutral” operations by 2025. In addition, the company is working to ensure that “35% of its leading positions held by women by 2020, (and) move further towards its vision that by 2020 no one will be killed or seriously injured in a new Volvo.”

Twin Engine T8 Volvo S90 Inscription White

“Sustainability is nothing new or something that sits outside our operations, it is something that forms an integral part of everything we do. It is simply our way of operating,” continued Mr Samuelsson. “This new sustainability commitment reflects Volvo Cars’ fundamental belief that we must also grow responsibly.”

More information can be found in the company’s recent Sustainability Report for 2015.


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James Ayre

James Ayre's background is predominantly in geopolitics and history, but he has an obsessive interest in pretty much everything. After an early life spent in the Imperial Free City of Dortmund, James followed the river Ruhr to Cofbuokheim, where he attended the University of Astnide. And where he also briefly considered entering the coal mining business. He currently writes for a living, on a broad variety of subjects, ranging from science, to politics, to military history, to renewable energy.

James Ayre has 4830 posts and counting. See all posts by James Ayre

17 thoughts on “Volvo Aims To Sell 1 Million Electrified Car By 2025 (~Twice The Tesla Model 3 Reservation Backlog)

  • By 2025! Oh my really going out on a limb here. Pure EV well maybe “It is a deliberately ambitious target” because we don’t know what we are doing yet.

    • I wonder what kind of vehicle Tesla will be ramping or introducing then, and how many gigafactories will be producing batteries. The y will be ramped by then. Oh right Volvo, so your competition is small, but growing really fast. They may not be all that small by 2025.

      • Tesla might be overrated.

        • I do think that Chinese companies (BYD, Geely) are going to provide major competition to Tesla, but it seems like the non-Chinese companies are *still* not really serious.

          • Why would they. They keep selling more ICE cars and will get most of the new industry substitutes in Germany by selling expensive cars they already produce.

        • When you say overrated, are you comparing them to other car companies, or to your perception of the hype surrounding them?

          • Compared to the total volume of the global car market.
            They might do well as a company, might even yield some dividend to it’s shareholders.
            Yet even 400-500k cars are only 0.5% of the global market.

            They are overrated on autonomous driving too. A friend of mine is developing the software for the next autonomous Audis (and they are going to be ICE cars). They work with mobileye and nVidia.
            They are not worried about Tesla because they say they are already ahead in what their cars can do.

            So it is mostly hype and that is fine but not really a threat to incumbent ICE manufacturers.
            It’s fairly obvious to them how Tesla is growing and they will position themselves in time.

            Even without growing competition Tesla won’t own more than 1-1.5% of the market in 2025. That’s not bad but the impact is really small.

          • Tesla has the *vast* bulk of the EV mind-share (and a significant part of the marketshare) — partly because they are the only successful western EV-only company. Yes, they are a small part of the car market, but [*draws an imaginary Venn diagram*] the EV market as a whole is a small fraction of the car market right now. The main reason for this small EV market are the limits in technology and production that applies to all manufacturers. Tesla is already well ahead of competitors in both areas. So long as: 1) they don’t fall asleep (which could happen; it happens to lots of companies) and 2) nobody develops a proprietary breakthrough technology (e.g. solid state batteries), I can’t see any way in which they would fall much behind.

            What does this mean? As the EV market grows, shedding its production and technology limits, there’s no reason Tesla can’t grow in lockstep.

            Also, I think it’s worth noting that I’m interested in EV growth in general and have no specific interest in Tesla. Nonetheless, assuming EVs take over the car market, I believe it highly likely that Tesla becomes a giant in the car industry. I pass no judgement on whether that’s good or bad.

  • Volvo is a wholly-owned subsidiary of the Chinese Zhejiang group. Its Geely subsidiary is a large carmaker in the domestic Chinese market. Geely have announced a target of 90% “new energy” vehicles by 2020 (!), of which one – third BEVs. On the seriousness scale, it is much closer to BYD than Faraday.

    • It sounds like Geely is very serious in the Chinese market (90% of cars with a plug!), but it sounds like Volvo Cars is not serious in the international market (only 100000 hybrid cars per year, many without plugs?). This is a little odd but maybe Geely’s attitude will rub off on its subsidiary eventually…

  • I don’t think that is ambitious, that’s about 100 000 cars per year for the next ten years. If they want to be at the front of electrification they schould do 100% BEV and PHEV by 2025 and if now sales 500 000 cars/year the target of one million doesn’t seams hard.

  • Volvo should simply pair up with Tesla. Hire Tesla to do their initial electric design to get them jump started. Purchase battery packs from Panasonic/Tesla. Sign on with the Supercharger system. They could have a top notch EV offering in about three years, complete with rapid charging solution.

    Volvo has a great brand name. It’s respected for high quality and safety. It’s a European brand, likely more appealing to EU buyers.

    P/T could announce the site of the first European Gigafactory at the same time the Volvo/Tesla agreement was announced.

    • Or just keep building autonomous hybrids and wait for battery prices to come down while selling cars and keeping the parts business. Probably more money in that strategy.

    • Batteries are made or designed in Asia. There are large economies of scale. Geely must have battery plans in China; they could supply the Volvo subsidiary from there.

  • 1 million per year would be a reasonable target. 1 million over the course of 9 years (2016 – 2025) is a miniscule target.

  • In 9 years it strikes me all auto makers will have to have a significant {B,PH,}EV portfolio. To me, this just reflects the corporate mindset of where they think the market penetration of EVs will be by 2025 (not sure of how they anticipate the distribution of cars per year toward 2025?).

    If Tesla is really up to 500k/yr by 2020 what does this say about Volvo with 1 million for 9 years? I guess the opposite question is applicable: if volvo thinks 1 million is reasonable by 2025 how does Tesla’s estimate jive. Telsa basically has made 1/8 of the Volvo estimate without the long term experience or economy of scale of a larger auto manufacturer. To me, I suspect Volvo is being conservative and just wants to take a slice out of the Tesla model 3 feel good mind share.

    Of course it is all wand waving on Volvo’s front at this point.

  • 9 years away and they don’t have a single car for sale. They’re late to the party….and I think they’re just grandstanding.

Comments are closed.