(DCNF)—Swedish automaker Volvo Cars said on Wednesday that it is scrapping its goal of going fully electric by 2030 as the electric vehicle (EV) market continues to struggle.
The company announced it now aims for between 90% and 100% of its cars to be fully electric or plug-in hybrids by the end of the decade, with the remainder being “mild,” non-plug-in hybrids, a company press release stated. Volvo’s backpedaling comes amid lower-than-expected consumer demand for EVs and a recent industry shift away from electrification.
“While Volvo Cars will retain its position as an industry leader in electrification, it has now decided to adjust its electrification ambitions due to changing market conditions and customer demands,” the company wrote. “The strategic adjustments to its electrification ambitions ensure that Volvo Cars has a flexible plan that meets customer preferences and enables value creation as a business.”
Volvo has ditched plans to sell only electric cars by 2030 amid waning demand for battery powered vehicles.
Another big manufacturer ditching EV plans. #CostOfNetZero
https://t.co/i7qPgRbjLx pic.twitter.com/AMlxhyAKwv
— Net Zero Watch (@NetZeroWatch) September 4, 2024
“We are and will remain an industry leader in electrification and nearly half of our global sales are either fully electric or plug-in hybrids,” a Volvo spokesman told the DCNF.
The company’s shift in strategy comes amid broader challenges in the EV market, with consumer demand coming in lower than proponents hoped, according to Fortune, and automakers like Rivian, Ford and General Motors hemorrhaging cash on their EV initiatives.
Ford scrapped plans to manufacture a three-row electric SUV in August, while Mercedez-Benz dropped its goal of an all-electric line-up by 2030 in February. Luxury EV maker Lucid laid off 6% of its workforce in May, equating to roughly 400 employees.
Volvo’s Wednesday announcement is the latest setback for President Joe Biden’s goal of having 50% of new U.S. car sales be EVs by 2030.
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]]>The EX30 electric SUV, a product of the Swedish luxury car brand Volvo, is a five-seater electric SUV with a 275-mile driving range and a five-second, zero to 60-mile-per-hour time, all at a competitive price of $35,000. The specs of the EX30 closely match the Tesla Model Y, except that the latter has more cargo room and has a cost before taxes and incentives of $42,990.
Volvo is one of the few carmakers in the U.S. that source their manufacturing in China, but the brand claims it still runs its own show and designs its cars in Sweden even though, since 2010, Volvo has been owned by Chinese automotive company Geely.
According to Climate Depot, the Volvo EX30 EV offers such competitive pricing in the U.S. due to several factors. Firstly, China has cheaper cost advantages and Volvo avoids U.S. tariffs due to its American manufacturing operations. Secondly, the dominance of China in the EV battery supply chain helps Chinese EVs undercut global competition. Lastly, Geely saves operational costs by sharing resources with Volvo and other brands it owns.
Furthermore, the price of the EX30 is expected to drop further if people lease it because of a loophole in the Inflation Reduction Act of 2022.
The law reinstated a $7,500 tax credit for EV buyers but excluded vehicles with components from countries considered economic or security threats, including China. However, the Internal Revenue Service has recently clarified that leased EVs qualify as commercial vehicles and are eligible for the subsidy without the restrictions related to components coming from China. In other words, this could make leasing an EX30 only $27,500.
China already dominating America’s EV market before selling its first car
In a 2023 Business Insider report, Alexa St. John wrote about how China is already dominating the American EV market even without selling a single car.
All this despite facing Wuhan coronavirus (COVID-19) lockdowns, economic uncertainties and the gradual phasing out of government EV subsidies. (Related: SUPPLY CHAIN WARNING: China flexes world domination muscle, restricts mineral exports vital for semiconductors and EV battery production.)
Chinese electric car companies like Geely, XPeng, Li Auto and Nio have gained significant traction in the global EV market, collectively capturing a 17 percent increase in market share in 2022, while non-Chinese automakers witnessed an 11 percent drop. Notably, BYD alone sold nearly 1.8 million EV batteries and plug-in hybrids in China in 2022, surpassing Tesla’s global sales figures.
The Chinese auto industry is now setting its sights on international expansion, with the U.S. as a prime target.
“What happens in China will not stay in China,” said Bill Russo, the CEO of advisory firm Automobility. “If you have that kind of supply chain, that kind of position on the chess board, then why wouldn’t you take that internationally?”
Chinese automakers possess several advantages in the U.S. market, especially with the lower cost of their vehicles compared to American brands.
And even if it fails to dominate the U.S. car market, its control over the global EV battery supply chain, including raw materials, processing, cell manufacturing and more, still gives China control over a majority of the production capacity in 2027. China has controlled about 75 percent of all battery cell manufacturing capacity and 90 percent of battery anode and electrolyte production since 2022. Since then, giant CATL, along with U.S. automakers GM and Tesla, have been dependent on China for their battery needs.
Even as the U.S. produces more mineral extraction here and the U.S. battery-making industry grows, much of these materials are still sent to China for processing.
Visit CommunistChina.news for stories related to China’s moves to dominate the global economy. Watch the video below that talks about the danger of America’s supply chain dependence on CCP.
This video is from the Chinese taking down EVIL CCP channel on Brighteon.com.
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- Saudi Arabia signs $5.6 billion deal with China to boost the kingdom’s EV industry.
- China enacts export restrictions on two crucial metals amid escalating trade war with US.
- Taiwan pushes back, won’t let US destroy semiconductor factories to prevent them from falling into Chinese hands.
- Experts: Semiconductor ban accelerates severing of US-China ties.
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