Finance, Markets

Volvo AB (VOLVY) set to go all electric as soon as 2019

According to latest publications, Volvo AB (OTCMKTS:VOLVY) which is traditionally famous for its emphasis on driver safety, has become the first conventional carmaker to indicate the end of the internal combustion engine.

The Chinese-owned giant revealed a plan to launch five fully-electric models between 2019 and 2021 and a range of hybrid models.

However it will still be making earlier models that have wholesome combustion engines.

Volvo’s owner Geely, has been swiftly moving ahead with electric car development for more than a decade. More interestingly the company now aims to sell one million electric cars by 2025.

“This announcement marks the end of the solely combustion engine-powered car,” said Hakan Samuelsson, chief executive of Volvo’s car-making division.

“People increasingly demand electrified cars, and we want to respond to our customers’ current and future needs,” he said.

Meanwhile analyst said  that no doubt at present Volvo’s declaration sounds dramatic, but the truth is it simply echoes the direction much of the auto industry is moving in.

Obviously the patrol or diesel engine is not dead and won’t be for a while at least. It still offers a comparatively inexpensive and well-proven means of getting around.

Furthermore the trouble is that emissions regulations are getting tougher every single day. From 2021, for example, carmakers in the EU will have to make sure that across their fleets, standard CO2 output is no more than 95g of CO2 per kilometer. That’s a lot lower than present levels.

Moreover most of the top auto-makers are responding by making fully-electric models. Some are already pretty inspiring. But making mass market cars that are inexpensive and have the right levels of performance is a research-intensive and costly process, while convincing consumers to purchase them in large numbers may also be time consuming.

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