Volvo's line-up to swell as it eyes more hybrid models

Volvo’s product line-up could swell to an “abnormal” number of models in the coming years as a result of abandoning its target of becoming electric-only by 2030, according to the firm’s deputy CEO – who insists the firm is “well-placed” to handle that. The Swedish car maker pledged in 2021 that it would only sell full electric cars from the start of the next decade. But the slow uptake of EVs in some global markets, and the recent decline in battery electric sales growth, has prompted Volvo to ditch that target. Volvo is now aiming for between 90 and 100 per cent of its global sales by 2030 to be electrified cars – either battery electric or plug-in hybrid – with the remainder mild hybrids. The firm expects BEVs and PHEVS to account for between 60 and 60 per cent of its line-up by 2025, compared to 48 per cent at present. The decision to scrap the target was made at Volvo’s 90/90 day, at which it launched a heavily updated version of the XC90 that will be sold alongside the EX90 EV. While Volvo remains committed to its launch programme for new electric cars, which includes the ES90 saloon next year, Annwall said that the lifespan of other existing petrol models could be extended. “If we want to be consistent with the strategy that we believe we're going to be fully electric but we accept that it takes longer, keeping the existing cars alive a little bit longer. something like that could make sense,” said Annwall. "Having the strength in a size class of being able to offer fully electric, plug-in hybrid and mild hybrid gives us flexibility. One of the advantages of Volvo is that we have quite a narrow model range of six, seven, eight cars, whereas our German competitors have, like, 30 or 40 cars. “In this transition period from an ICE world to a BEV world, we can temporarily have a broader product portfolio: we can have seven BEVs, and we can have seven cars with mild and plug-in hybrids. So we have 14 cars for a while, but that's fine because we can still handle it. Some of our competitors can't have 35 cars here and 35 there, they can't have 70 cars. We can handle this transition by having an abnormally large model portfolio for a while.” Annwall insisted that Volvo could still be a market leader in electrification, saying that “leadership is about having a clear vision, but it's also about adjusting to reality.” He added: “Leadership is not only saying what you're going to do seven years from now, leadership is delivering here and now. If you compare Volvo to any of our traditional competitors, we're selling more BEV. We sell 48 per cent electrified cars right now, with 26 per cent full electric: that's far ahead of our competitors. So we are leading, and we’re going to continue to lead. Then the question is, with which margin should you lead?” Volvo boss: we are pragmatic, not dogmatic Volvo boss Jim Rowan said that the decision to drop the 2030 pledge didn’t affect Volvo’s commitment to electrification. It is currently developing a new platform and generation of motors, along with an advanced new software architecture that will underpin future EVs. The firm previously sold its combustion engine development division to Aurobay, which will continue to develop the MHEV and PHEV units that Volvo will use. When launched Aurobay was a joint venture between Volvo and parent firm Geely, although Volvo has now divested its stake. Asked by Autocar how far ahead the firm would need to decide on a final phase-out date for non-EV models, Rowan said: “We don't need to make a final decision. It depends if legislation changes, but we’re never in control of that, of course, right? “I’m neither an optimist nor a pessimist, I'm a pragmatist. When an industry is going through so much change so profoundly, then pragmatism is going to win the day.” He added: “My job as a CEO is to position the company that if the road has to veer to the left, we can veer to the left. If it has to be veer to the right, we can veer to the right. With the MHEVs and PHEVs and the BEVs we’re developing, I'm going to allow the company to make those choices much later in the day than we maybe thought we'd need to. If that means we need to continue to invest in MHEVs and PHEVs for longer than we thought, that that's okay.” Rowan added that the change was driven by external circumstances. “We never saw the pandemic coming, we never saw the semiconductor shortage coming,” he said. “We can be dogmatic about this and say that we said we’d be a full electric car company by 2030, and just ignore everything that’s going on in the marketplace right now. That’s not pragmatism, that’s dogmatism. “I’m saying that it might take a little bit longer, we have the technology, we have great cars, we have a customer base that really likes MHEVs and PHEVS, so let’s give the market what it needs.”