Volvo Has Big Goals for Its First-Ever Electric Car

Achieving Volvoamp8217s sales goals amp8212 without an accompanying steep drop off from the 507704 cars it sold in the first nine months of 2019 upamp16074 percent compared to 2018 amp8212 depends on consumers making the same shift from internal combustion that the executives are planningamp160 And thatamp8217s a heavy liftamp8220The future is electric and we are fully committed to go allin on itamp8221 said Green during the introduction of the new XC40 electric in Los Angelesamp160 As if to underscore that point in October Volvo announced a deal with its parent company Geely to spin off its internalcombustion engine production as a standalone businessamp160 That step was taken so amp8220we could fully concentrate on our new electrification technologyamp8221amp160Hamp229kan Samuelsson president and chief executive officer of the Volvo Car Group said during the presentationVolvo has a lot of company in pivoting towards a battery futureamp160but that development is set against a fairly soft current market for electric vehiclesamp160 Audiamp8217s etron sold 434 units in September andamp160Jaguaramp8217s IPaceamp160just sold 160 according to InsideEVsamp160 The major bright spot in the industry is Tesla which soldamp16019100 Model 3s and 1675 Model SUVs in Septemberamp160 After Tesla the bestsellers are the Toyotaamp8217s Prius Prime plugin hybrid with 1650 sold in the period and the Chevrolet Bolt with 2125 soldVolvo is quite conscious of all thisamp160 The price of the XC40 is importantamp160 A sweetener amp8212 added in California amp8212 is free charging for all Rechargebranded carsamp160 A Volvo spokesman told me the price will be amp8220under 48000 after federal tax incentivesamp8221 which seems expensive if Volvoamp8217s goal is to get EVs beyond the nicheBjamp246rn Annwall head of the EMEA region and global commercial operations admitted that some consumers are hesitating to buy electric cars because of range issues and limited public charging but free charging would incent plugin hybrid owners to drive more on battery poweramp160 amp8220The more you use the electric motor the more you saveamp8221 he saidVolvo seems to have succeeded in getting consumers to consider plugin hybrids which will be available on its entire model lineamp160 But full battery electrics are new to the company though it did have a lease program for small C30 electricsamp160launched in 2011amp8220Weamp8217re not going to comment on the full marketing strategy just yetamp8221 a Volvo spokesman told meamp160 Part of the strategy will be to convince buyers that what Volvo did for safety it can do for our embattled earthamp160 amp8220Our customers expect us to do the same stellar job with planetary safety as weamp8217ve always done with car safetyamp8221 said AnnwallIs that going to workamp160 Iamp8217d say itamp8217s questionableamp160 People will pay for safety because it protects the family but ponying up for the planet is a bigger stretch amp8212 especially if the cars are expensiveSo what should Volvo doamp160 Build excitementamp160 The cars that move amp8212 Teslas amp8212 have emotional appeal for buyersamp160 They want them more than they want comparable gaspowered performance carsamp160 Volvoamp8217samp160XC40amp160Rechargeamp160wonamp8217t be a barn burner though 408 horsepower and zero to 60 mph in 48 seconds with allwheel drive isnamp8217t too shabbyamp160 A range of 248 miles on a charge of the 78kilowatthour is not bad but not outstandingamp160 The Chevy Bolt has numbers like these and it sells for 37495 including destination fees amp8212 before the 7500 tax creditThe XC40 Recharge will sell to customers who value safety it has the same strength there as other Volvosamp160 And the company is stressing something out of left field infotainmentamp160 The onboard system is the result of an ongoing partnership with Google and should be quite sophisticated with voice commands that actually workTo be fair Volvoamp8217s emissionsreductions strategy has other dimensions beyond EV sales It also wants to reduce its footprint via suppliers and its energy usageamp160 But moving cars is a big part of itamp160 We donamp8217t have the marketing strategy yet but Volvo needs to be clever and innovative as well as priceconscious if its EVs are to lead the company to a sustainable futureClick the social buttons to share this story with your friends and colleaguesThe opinions and points of view expressed in this content are exclusively the views of the author andor subjects and do not necessarily represent the views of MediaVillagecomMyersBizNet Inc management or associated writersamp160

SUBSCRIBE FOR FREE MEDIAVILLAGE CONTENT | BECOME A THOUGHT LEADERSHIP CONTRIBUTOR

Volvo Has Big Goals for Its First-Ever Electric Car

Author

Publish date

Channel

Jim Motavalli

SUBSCRIBE FOR FREE MEDIAVILLAGE CONTENT | BECOME A THOUGHT LEADERSHIP CONTRIBUTOR

Volvo Has Big Goals for Its First-Ever Electric Car

Enjoying This Commentary? There's More to Love

Jim Motavalli

Cookies