The former Swedish car manufacturer currently owned by Geely, a Chinese multinational announced its bold plans to abandon the conventional car engine (the internal combustion engine that is) by 2019. Volvo’s chief executive officer has a bold target in mind: to sell 1,000,000 electric vehicles and hybrids by 2025.
It appears that Volvo’s CEO just decided in his infinite wisdom that the conventional car engine is old news and the future is for the bold, beautiful and state-subsidized (that’s taxpayer’s money by the way) uber-high tech companies like Tesla. The thing is, Tesla just announced earlier this week its latest model, Model 3 respectively, which is ready to enter mass production.
Henceforth, the Chinese owned Volvo stated on Wednesday that all of its models starting with 2019 will be either hybrids or full electric. Judging from its discourse, Volvo seems to be a pioneer among world’s major automotive makers, being the first getting ready to ditch the good old internal combustion engine. Let’s see how it works out for Hakan Samuelsson, Volvo’s CEO, who said that the company’s latest move “marks the end of the solely combustion engine-powered car,” and “When we said it, we meant it. This is how we are going to do it.”
Between 2019 and 2021, Volvo hopes to take the world by storm with 5 brand new models, hybrid and fully electric alike, of which 2 will be designed and built by its performance-car department Polestar. The other three will be “regular” Volvos, whatever that means.
The electric car was made possible by governments imposing stricter and stricter emissions regulations, i.e. they’re not the consequence of the free market. Also, all electric vehicles are heavily subsidized by the same governments. Analysts believe that starting with 2025, EV’s will become more affordable due to rising costs of developing conventional engines, as automotive makers are struggling to cope with government imposed fatwas regarding emissions.
Tesla’s latest Model 3 which will hit the world this week has a starting price of $35,000, which is more than twice compared to the price of a regular gas/diesel operated vehicle (think VW Golf, Ford Fiesta, Honda Civic etc) having 3-4-5 times the autonomy of an EV (and many other advantages), but let that go.
The thing is, Tesla is a novelty item for the rich. How many households are “tesla” only households? I’d bet nearly zero. Until the charging time and availability of EV’s rivals conventional cars, it’s a no go for the majority of Americans and the rest of the world for that matter.
Unless the states and FEDs begin taxing electrics and hybrids for the miles they are driven, owners of diesel and gasoline vehicles will be paying more than their fair share of highway taxes. In addition to tax credits buyers get for purchasing them, electric/hybrid drivers escape some or all of the highway taxes all others pay. I mean, this is not competition, but crony capitalism, the “feral gummint” deciding who wins and who loses.