On Wednesday, Swedish automobile company Volvo announced that it would be abandoning attempts to make their line of cars 100% electric vehicles (EVs) by the year 2030.
As reported by the Daily Caller, the company’s announcement instead revised their goal from 100% electric to between 90% and 100% electric or plug-in hybrids by 2030, with the remaining amount of cars being “mild” non-plug-in hybrids.
“While Volvo Cars will retain its position as an industry leader in electrification, it has now decided to adjust its electrification ambitions due to changing market conditions and customer demands,” the company wrote. “The strategic adjustments to its electrification ambitions ensure that Volvo Cars has a flexible plan that meets customer preferences and enables value creation as a business.”
“We are and will remain an industry leader in electrification and nearly half of our global sales are either fully electric or plug-in hybrids,” a Volvo spokesman added.
This development comes as the broader EV market struggles to gain traction, even despite mandates from the Biden-Harris Administration, as well as several state governments such as California.
Despite such orders forcing many manufacturers to adopt EVs on a wider scale, consumer demand remains extremely low as the overwhelming majority of Americans prefer gas-powered cars. Other major manufacturers, including Ford, General Motors, and Rivian, have been losing money in their attempts to manufacture and sell more EVs.
In August, Ford abandoned plans to produce a three-row electric SUV. In February, Mercedes-Benz ditched its efforts to produce an all-electric lineup of cars by 2030. In May, Lucid fired approximately 6% of its workforce, totaling about 400 employees, due to losses incurred by the EV mandate.
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