By 2030, the Swedish premium manufacturer wants to withdraw completely from the production of cars with combustion engines. Not even hybrid vehicles are to be found in the manufacturer's sales brochures by then.
The 2030 ambition represents an acceleration of Volvo Cars' electrification strategy, driven by strong demand for its electrified cars in recent years and a firm conviction that the market for combustion engine cars is a shrinking one. "To remain successful, we need profitable growth”, says Volvo Cars CEO Håkan Samuelsson. “So instead of investing in a shrinking business, we choose to invest in the future – electric and online.”
Selling new cars exclusively via online channels is the company's next step towards digitalisation. None of the classic car manufacturers has gone this far yet. The move and will transform the current wholesale model by moving online and with strong customer relationships. As a precondition, Volvo will need to transfer its entire customer relations to new digital platforms. The company believes that this will come along with significant reductions in the sales and marketing process. In addition, it is hoped that it will minimize the complexity in its product offer and go along with transparent and set pricing models.