Volvo to end the production of all internal combustion engine vehicles (including hybrids) by 2030; to make only electric vehicles

Welcome to the brave new world. The era of diesel- and gasoline-powered vehicles is slowly coming to an end. Today, Volvo announced that it is phasing out the production of all cars with internal combustion engines — including hybrids. The Swedish automaker says it will make only electric vehicles by 2030.

Unlike gasoline-powered cars which you have to buy from the dealerships, Volvo said that the new all-electric vehicles will be sold exclusively online. However, Volvo said that dealerships will “remain a crucial part of the customer experience and will continue to be responsible for a variety of important services such as selling, preparing, delivering and servicing cars.”

In 2020 alone, about 2.5 million electric vehicles were sold worldwide. During the same period, Volvo says it sold 661,713 cars in about 100 countries cars worldwide in 2020. 107,626 of those vehicles were sold in the U.S., according to data from Autodata Corp. Meanwhile, the trend is on the side of electric vehicles. Industry analyst IHS Markit forecasts that EV production will increase by 70% in 2021.

The shift to all-electric vehicles by automakers will have profound impacts on the global economy. For example, auto mechanics, oil-change, gas stations, auto part stores, vehicle parts manufacturers, and upstream and downstream oil and gas production businesses, will eventually be impacted by this change. However, the shift also presents opportunities for businesses and people in these areas to repurpose and develop new skills required in the era of the all-electric vehicle.

In a news release, Volvo said its decision to go fully electric is an extension of an earlier plan to have 50 percent of its fleet be fully electric by 2025. The company said that its “2030 ambition represents an acceleration of Volvo Cars’ electrification strategy, driven by strong demand for its electrified cars in recent years and a firm conviction that the market for combustion engine cars is a shrinking one.”

Volvo’s chief technology officer Henrik Green said, “There is no long-term future for cars with an internal combustion engine.” Green added, “We are firmly committed to becoming an electric-only car maker. It will allow us to meet the expectations of our customers and be a part of the solution when it comes to fighting climate change.”

Volvo now joins a list of major automakers that plans to stop producing fossil-fuels cars. As we noted last month, General Motors also announced that it will end the production of diesel- and gasoline-powered vehicles by 2035 and exclusively offer electric vehicles.

As part of the announcement Tuesday, the Swedish automaker will unveil its second fully electric car, a follow-up to last year’s XC40 Recharge, a compact SUV. Volvo said its goal is to have half of its global sales be fully electric cars by 2025, with the remaining half made up of hybrids.

Founded in 1927. Volvo Cars is now one of the most well-known and respected car brands in the world with sales of 661,713 cars in 2020 in about 100 countries. Volvo Cars has been under the ownership of the Zhejiang Geely Holding since 2010.