Volvo Pumps Brakes on Electric Future As EV Demand Slows

The worldwide race to produce electric vehicles (EV) is slowing. Another major carmaker, Volvo, announced last week that it was changing its plan to produce only EVs by 2030. Instead, the Swedish company said it was hoping for 90% to be EVs while 10% of its vehicles could be “mild hybrids” by that time. 

Other major automakers also have said recently that they are scaling back EV plans. They include General Motors and Ford in the US. So have luxury automakers Mercedes Benz and Lamborghini. 

Environmentalists and public leaders worldwide had hoped the shift to EVs would occur swiftly. There's a global push to reduce greenhouse gas emissions produced by gas-burning vehicles. Those emissions are driving climate change. Climate change is warming the planet. It's pushing up ocean levels, too.

Instead, some carmakers have struggled to sell enough EVs. This is because global demand has slowed. What's one main culprit for falling demand? The lack of enough charging stations. In fact, many are still in the planning stages. European tariffs have also hurt sales. They've been placed on China-made EVs.

Volvo said it was by no means scrapping plans to only produce EVs one day. Volvo said it's taking a more deliberate path instead. “It's a pragmatic approach," Erik Severinsson, Volvo’s head of strategy and its chief product officer (CPO), told Reuters. The CPO said the new approach will help buyers go on the journey to full EV. "For many (buyers) in many markets it will be a stepwise journey," he added. 

The EV revolution might be slowing. But it’s not ending. For instance, the Italian automaker Ferrari, known for its race and sports cars, opened a major new factory last month dedicated to an EV future.  

Reflect: What are some reasons why people might hesitate to switch to new types of technology, even if they know it could be better for the environment?

Photo of an EV charge next to a Volvo car from Reuters.