09-06-24 TPE PM

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Reality Bites: Swedish Automaker Volvo Abandons Ambitious Electric Vehicle Goals

In another blow to the green agenda, Sweden-based Volvo Cars has officially axed its lofty ambition to go fully electric by 2030, citing lackluster consumer demand for electric vehicles (EVs). The once-touted pioneer in electromobility now expects to achieve a mere 90%-to-100% share of full electrics or plug-in hybrids by the end of this decade – leaving room for "mild" hybrid alternatives.

This dramatic pivot marks yet another significant retreat by major manufacturers from aggressive electrification targets amidst dwindling enthusiasm among would-be buyers. As industry behemoths such as Rivian, Ford, and GM continue to bleed capital attempting to prop up flagging EV ventures, even luxury marquees like Mercedes-Benz have tempered expectations.

"We are and will remain an industry leader in electrification," assured a Volvo spokesperson, noting that almost half of worldwide sales currently come courtesy of fully electric or plug-in hybrid offerings.

However, behind-the-scenes realities belie these rosy pronouncements. In light of shifting marketplace dynamics and customers' lukewarm reception, Volvo admits they needed flexibility:

"While [they] will retain its position as an industry leader in electrification...it has now decided to adjust its electrification ambitions..."

As more bad news rains down upon Team Electrify Everything's parade, one Twitter user succinctly distilled the essence of this story: "@NetZeroWatch observed tartly, '[I]'d say 'another big manufacturer ditch[ing] EV plans.'"

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