Electric Ambitions, Tempered by Realism
Volvo’s leadership remains firmly committed to an electric future. Still, their message these days is notably more down-to-earth. The much-publicized goal to sell only electric cars by 2030? It’s likely to shift back a few years. Why? Quite simply, the charging infrastructure just isn’t extensive enough yet, and there isn’t sufficient demand to support a full-on electric pivot.
That’s why plug-in hybrids are now seen as a crucial bridge technology. As Volvo CEO Samuelsson puts it:
“Volvo will be stronger if we electrify faster,” Samuelsson says, “but we also have to be practical.”
Speed Bumps: Delays, Tariffs, and Costly Decisions
Yet, reality bites. The postponed launch of the EX90—Volvo’s flagship electric SUV—hit the company hard, costing millions. To add more fuel to the fire, new import tariffs in the United States and the European Union on Chinese-made electric vehicles are giving Volvo executives headaches. As a result, the production of the popular EX30 has now been shifted from China to Belgium.
The Changing Face of Competition
China’s influence on the global electric car market is undeniable. Samuelsson explains:
“In China, brands like BYD, Xiaomi, and Zeekr already control more than half of the market. Now, they’re making inroads into Europe, too. That increases the pressure. But our partnership with Geely gives us strategic muscle.”
Geopolitics and the American Headache
One particularly thorny issue? The United States. Thanks to Volvo’s Chinese ownership, there’s a very real risk of a sales ban in the US. Samuelsson, however, remains calm, emphasizing Volvo’s independence:
“Volvo is a publicly traded company with strict governance. Our data aren’t sent to China, and no model contains Chinese components. That’s what we need to make clear to the authorities.”
Looking ahead, Samuelsson paints a sobering picture of the decade to come:
“In ten years, cars will be fully electric and cheaper. But the market will only have room for a handful of global players: a few American and European brands, plus two or three Chinese giants.”
As for his own return to the top of Volvo, Samuelsson calls it temporary. His current contract lasts just two years, during which he’s preparing successors for the challenges to come. When asked about his leadership style, he quips:
“If nothing else works, just tell the truth.”
John is a curious mind who loves to write about diverse topics. Passionate about sharing his thoughts and perspectives, he enjoys sparking conversations and encouraging discovery. For him, every subject is an invitation to discuss and learn.
