A major automaker is set to invest up to $US 20 million in Volvo’s new EV platform.
Key points:Volvo is working on a new electric car that will compete with the Tesla Model 3This investment will help the automaker “deliver on its vision of the future of electric cars”The investment will also help Volvo deliver on its Vision 2025 electric vehicle roadmapThe announcement is a “great start” for Volvo, according the firm’s executive chairman.
“Volvo has delivered on its visionary vision of electrifying our fleet,” Volvo executive chairman Jim Callander said in a statement.
“The Vision 2025 programme is a great start for the future, as it will enable us to deliver on our Vision 2025 roadmap and deliver more than $US1.4 billion in investment into Volvo by 2020.”
The investment is set for the next 12 months.
“This investment brings Volvo’s total investment into the electric car market to $1.9 billion, up from the $1 billion already committed to the Model 3,” Mr Callander added.
The investment in the EV platform is part of Volvo’s strategy to “delivers on its visions of the modern automotive landscape”.
“The company is continuing to lead in the electrification of vehicles and our commitment to the development of electric vehicles is a key part of that,” Volvo chief executive Norbert Roetter said.
The announcement follows a $US500 million commitment from Volvo to support the development and sale of EVs in the US by 2020.
Volvo already has two EVs on the road in the form of the electric-hybrid Volvo XC90 and the electric plug-in hybrid Volvo XE90, which have been sold in the market.
Mr Roetter also said that Volvo would not sell its current fleet of more than 1,000 plug-ins for less than $3,000, as the cost of building a plug-up car is rising quickly.
“We believe that the next step for Volvo in its EV portfolio will be to sell its plug-ups for a higher price than we currently sell them,” Mr Roetter told the media in Sydney.
“Our goal is to bring them to market for $1,000-2,000.”
Volvo’s Vision 2025 Vision 2030 Vision 2025 2020 Vision 2025 $US 1.1 trillion $US 890 billion $US 565 billion $USD 1.4 trillion $USD 2.2 trillion $ USD $2.3 trillion $ $USD $1 trillion$Volvo currently has around 1,300 plug-ons in the UK, with a further 500 in Europe.
The firm’s vision for EVs is to create a new standard in vehicle performance, which is a reference point for future technologies, but it has been criticized by some electric car enthusiasts and some consumers.