Volvo has set out its plan to become a fully electric car brand and is to end production of its hybrid models after 2025.
Bosses aim for fully electric vehicles to account for 50 per cent of its global sales by 2025, launching a new electric model every 12 months up to that date.
Volvo’s chief executive, Hakan Sammuelson, told Auto Express that beyond 2025 it is a matter of “when” not “if” the company ditches internal combustion engines and hybrids all together.
Sammuelson said: “We have shown our strategy to electrify, not by doing one car, we did it the expensive way of adopting a new platform so all future cars will be either electric or hybrid – it is up to the customer.
“The higher the percentage of all electric [sales] the faster we will shut down the others.
“If only five per cent are buying cars with combustion it probably doesn’t pay to keep that – so let’s see what the customers prefer long term.”
The new Volvo XC40 Recharge is the firm’s first fully electric model and will be followed by four additional EVs by 2025.
Sammuelson added: “If you stay with outdated technology that is not a smart way to improve your profits.
“What happens is then your margins disappear and you close down.
“If you introduce new technology, in the beginning it will probably lower margins – that has happened in the past. But after a number of years you introduce new technology because you believe it will improve your profits.”
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