Slow transition to EV adoption is a mistake, says Volvo CEO

Volvo is also said to be working on an entry-level offering, the EX30, which will slot below the XC40 Recharge.

According to reports, Volvo CEO Jim Rowan has stated that going at a reduced speed towards an all-electric future is a mistake.

Rowan added that Volvo was bold enough to invest in electrification ahead of the imminent inflexion point. At a recent company meeting, Rowan stated that in 2025, Volvo would reach price parity between ICE and EV models, with the high cost of raw materials required for electrification being the only limiting factor.

Volvo has one of the most aggressive EV transition plans in the auto industry, with a goal to become a pure-electric car brand by the decade's end. The Swedish carmaker stated that the raw material cost was the only thing standing in its way of full-scale adoption. Rowan confirmed that Volvo was in talks with mines and factories to get direct access to lithium at more reasonable prices, which in turn will help reduce the overall cost of the EVs.

The statement by Volvo is a stark contrast to that of Toyota. The Japanese carmaker just recently argued that carmakers should offer varying power sources like hydrogens and hybrids rather than concentrating only on EVs.

Coming back to Volvo, the carmaker currently offers a range of EVs in its lineup. This includes the C40 Recharge, XC40 Recharge and the upcoming EX90 SUV. Volvo is also said to be working on an entry-level offering, the EX30, which will slot below the XC40 Recharge and will be offered on a subscription basis only.

Source: Automotive News