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| A Volvo plug-in hybrid at an auto show in Beijing in 2014. |
Volvo Cars on Wednesday became the first mainstream automaker to sound the death knell of the internal combustion engine, saying that all the models it introduces starting in 2019 will be either hybrids or powered solely by batteries.
The decision is the boldest commitment by any major car company to technologies that currently represent a small share of the total vehicle market but are increasingly viewed as essential to combating climate change and urban pollution.
While most major automakers offer hybrids and battery-powered options, none of them have been willing to forsake cars powered solely by gasoline or diesel fuel. On the contrary, United States automakers have continued to churn out S.U.V.s and pickup trucks, whose sales have surged because of relatively low fuel prices.
Yet Volvo’s move may be the latest sign that the era of the gas guzzler is slowly coming to an end. Tesla, which makes only limited numbers of electric cars, surpassed Ford and General Motors this year in terms of stock market value, despite making significantly fewer cars than those automotive giants — a clear indication of where investors think the industry is headed.
“Our customers are asking more and more about electric cars,” Hakan Samuelsson, the chief executive of Volvo, said in a telephone interview on Wednesday. While Volvo’s strategy has risks, Mr. Samuelsson acknowledged, “a much bigger risk would be to stick with internal combustion engines.”
Though based in Sweden, Volvo is owned by Geely Automobile Holdings of China, which already produces battery-powered cars
for the Chinese market. The decision by Volvo to focus on electric vehicles could ultimately give it and Geely a head start if, as many analysts expect, sales of battery powered cars begin to take off. China is already the largest market for electric vehicles.
for the Chinese market. The decision by Volvo to focus on electric vehicles could ultimately give it and Geely a head start if, as many analysts expect, sales of battery powered cars begin to take off. China is already the largest market for electric vehicles.
Volvo’s battery-powered vehicles will be produced initially in China, but eventually also in Europe and at a new factory the company is building near Charleston, S.C.
Hybrids, which combine battery power with gasoline or diesel engines, accounted for about 2 percent of passenger car sales in the United States last year, a number that has been declining because gasoline prices have fallen.
And cars that run solely on battery power are still rare in most countries because of high purchase prices, lengthy charging times and limited ranges.
Still, most carmakers expect the share of electric cars to grow quickly as the technology improves, prices fall and public charging stations become more commonplace. Rapid advances in self-driving cars will also encourage a shift to battery power: It is simpler to link self-driving software to an electric motor than to a conventional engine.
Although no other traditional carmakers have declared their
intention to bury the internal combustion engine, virtually all
of them are investing in hybrid and battery technology.
intention to bury the internal combustion engine, virtually all
of them are investing in hybrid and battery technology.
Daimler, the maker of Mercedes-Benz cars and trucks, said on Wednesday that it would invest 5 billion renminbi, or $735
million, in a new battery factory it will build in Beijing with its
Chinese partner, BAIC Motor.
million, in a new battery factory it will build in Beijing with its
Chinese partner, BAIC Motor.
The major American automakers are moving forward with their
own electrification strategies, albeit on a much smaller scale
than Tesla and now Volvo.
own electrification strategies, albeit on a much smaller scale
than Tesla and now Volvo.
General Motors, for example, this year introduced the
Chevrolet Bolt — a battery-powered model that sells for about
$35,000 before government incentives are applied.
The Bolt can travel 238 miles
on a single charge and will be the basis for other electric models
that G.M. expects to add to its lineup.
Chevrolet Bolt — a battery-powered model that sells for about
$35,000 before government incentives are applied.
The Bolt can travel 238 miles
on a single charge and will be the basis for other electric models
that G.M. expects to add to its lineup.
Ford has sold electric versions of a few mainstream models, but
it has not yet developed an all-electric vehicle from the ground
up. That is changing, however. The company has said it will
introduce a battery-powered S.U.V. by 2020 and will add other
electric models thereafter.
it has not yet developed an all-electric vehicle from the ground
up. That is changing, however. The company has said it will
introduce a battery-powered S.U.V. by 2020 and will add other
electric models thereafter.
The third big domestic automaker, Fiat Chrysler, has lagged. It
sells an electric version of its Fiat 500 subcompact car and a
hybrid gas-electric variation of its Chrysler Pacifica minivan.
But the company has yet to announce any plans to build a new
vehicle that is available only as an electric model.
sells an electric version of its Fiat 500 subcompact car and a
hybrid gas-electric variation of its Chrysler Pacifica minivan.
But the company has yet to announce any plans to build a new
vehicle that is available only as an electric model.
Even though consumer demand for electric cars is so far small, carmakers view it as a way for them to meet stricter fuel
economy and pollution standards. The pressure is particularly
acute in Europe,
where an emissions cheating scandal at Volkswagen has set off
a sharp decline in the sales of diesel cars, which account for
about half the auto market in the region.
economy and pollution standards. The pressure is particularly
acute in Europe,
where an emissions cheating scandal at Volkswagen has set off
a sharp decline in the sales of diesel cars, which account for
about half the auto market in the region.
Carmakers including Volvo have depended on diesel to
provide better fuel efficiency and lower carbon dioxide
emissions. But the Volkswagen scandal has raised
awareness of the health effects of diesel exhaust.
Diesel engines burn fuel more efficiently than gasoline
motors, but they produce far more nitrogen oxides,
which cause asthma
motors, but they produce far more nitrogen oxides,
which cause asthma
Diesel engines burn fuel more efficiently than
gasoline motors, but they produce far more
nitrogen oxides, which cause asthma and are
considered a carcinogen. The cost of the
equipment needed to neutralize diesel fumes is
becoming prohibitive.
gasoline motors, but they produce far more
nitrogen oxides, which cause asthma and are
considered a carcinogen. The cost of the
equipment needed to neutralize diesel fumes is
becoming prohibitive.
“The diesel engine is getting more expensive,
” Mr. Samuelsson said during a news conference
in Stockholm on Wednesday. “We would prefer
to talk about the alternatives.”
” Mr. Samuelsson said during a news conference
in Stockholm on Wednesday. “We would prefer
to talk about the alternatives.”
The changing political landscape in the United
States has somewhat muddied the outlook for
electric cars on the other side of the Atlantic.
The Obama administration was highly
supportive of electrified vehicles, which could
help companies meet tougher federal
fuel-economy standards.
States has somewhat muddied the outlook for
electric cars on the other side of the Atlantic.
The Obama administration was highly
supportive of electrified vehicles, which could
help companies meet tougher federal
fuel-economy standards.
But, so far, President Trump has not pursued
policies that encourage the development of
electric vehicles.
policies that encourage the development of
electric vehicles.
Moreover, the persistence of low gasoline prices
continues to push American buyers toward
bigger vehicles — trucks and S.U.V.s — and has
made the fuel economy of electric or hybrid
vehicles less potent as a selling point.
continues to push American buyers toward
bigger vehicles — trucks and S.U.V.s — and has
made the fuel economy of electric or hybrid
vehicles less potent as a selling point.
Volvo’s transition will be gradual. It plans to
still produce existing models with conventional
engines after 2019, but it will no longer
introduce new models with the older
technology. Depending on demand, Volvo will
completely phase out cars powered solely by
gasoline or diesel by around 2024.
still produce existing models with conventional
engines after 2019, but it will no longer
introduce new models with the older
technology. Depending on demand, Volvo will
completely phase out cars powered solely by
gasoline or diesel by around 2024.
But by focusing on electrification, Volvo can
concentrate its limited research and
development resources on new technologies
rather than continuing to invest in fuel-powered
motors that may become obsolete. With sales
of 534,000 cars last year, Volvo is dwarfed by
companies like Toyota,
Volkswagen and General Motors, each of
which sold about 10 million vehicles in 2016.
concentrate its limited research and
development resources on new technologies
rather than continuing to invest in fuel-powered
motors that may become obsolete. With sales
of 534,000 cars last year, Volvo is dwarfed by
companies like Toyota,
Volkswagen and General Motors, each of
which sold about 10 million vehicles in 2016.
Volvo will be able to draw on technology
developed by its parent company, Geely.
The companies can also save money by
purchasing components such as batteries
together.
developed by its parent company, Geely.
The companies can also save money by
purchasing components such as batteries
together.
Analysts said Volvo’s decision to pursue a
lineup dedicated to electric and hybrid
vehicles is motivated, in part, by the
Chinese government’s efforts to reduce harmful
emissions from internal combustion engines.
lineup dedicated to electric and hybrid
vehicles is motivated, in part, by the
Chinese government’s efforts to reduce harmful
emissions from internal combustion engines.
“Chinese ownership of Swedish-based Volvo
likely played a role in the automaker’s
announcement today,” said Michelle Krebs,
an analyst with the auto-research site
Autotrader.com. “China’s air pollution
problems have prompted a more
serious push toward cleaner automobiles.”
likely played a role in the automaker’s
announcement today,” said Michelle Krebs,
an analyst with the auto-research site
Autotrader.com. “China’s air pollution
problems have prompted a more
serious push toward cleaner automobiles.”
Volvo said on Wednesday that it would
introduce five models from 2019 to 2021 that
would run solely on electric power. That
includes two models sold under Volvo’s
Polestar brand, which the company is
marketing as a maker of high-
performance electrified cars.
introduce five models from 2019 to 2021 that
would run solely on electric power. That
includes two models sold under Volvo’s
Polestar brand, which the company is
marketing as a maker of high-
performance electrified cars.
Other models will include plug-in hybrids,
which can be charged from power outlets and
run for short distances solely
on batteries, and so-called mild hybrids, which
charge their batteries from the car’s
conventional engine or by recovering energy
from braking. Hybrids still require gasoline or
diesel fuel, but they are typically more efficient
because the batteries share the load.
which can be charged from power outlets and
run for short distances solely
on batteries, and so-called mild hybrids, which
charge their batteries from the car’s
conventional engine or by recovering energy
from braking. Hybrids still require gasoline or
diesel fuel, but they are typically more efficient
because the batteries share the load.
Mr. Samuelsson said the company also wanted
to encourage suppliers to invest in battery
technology and charging stations.
to encourage suppliers to invest in battery
technology and charging stations.
“It’s important to make a clear statement,”
he said.
he said.
