Volvo goes all-electric, sells online only

Volvo goes all-electric, sells online only

Business news |
By Christoph Hammerschmidt

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.

To underline its commitment, Volvo has now also announced a battery electric car. The C40 Recharge, whose production is scheduled to start in fall 2021 at the Volvo plant in Ghent, Belgium, is primarily intended to compete against popular electric models such as the Tesla Model 3 and Volkswagen’s ID.3. The car is based on Volvo’s CMA platform and is to be equipped with state-of-the-art infotainment technology that Volvo is developing together with Google and based on the Android operating system. Among other things, the system is to include Google services such as Google Maps, Google Assistant and the Google Play Store.

Online only: To attract digital natives, Volvo will only sold through online channels in the future

The propulsion consists of twin electric motors, one on the front and one on the rear axle, powered by a 78kWh battery that can be fast-charged to 80 % of its capacity in about 40 minutes. It offers an anticipated range of around 420 km*, which is expected to improve over time via OTA software updates.

More information:

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