Governments are better off banning cars that run on petrol or diesel than granting subsidies for electric cars. Hakan Samuelsson, Volvo’s CEO, said this on Wednesday during an online car conference organized by the British business newspaper Financial Times. “No one can build a profitable successful trade by relying on support measures.”
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The Volvo boss calls the traditional combustion engine ‘a technology of the past’. He applauds the phasing out of diesels and petrol cars in Europe until 2030. However, he doubts the policy that governments are using for this. “While temporary bailouts can spur the industry to develop in the right direction, it can be more efficient for governments to have a clear agenda towards an electric future,” said Samuelsson.
With a clearly prescribed phasing out of the combustion engine, according to the Volvo CEO, car manufacturers know better where they stand until they are only allowed to sell emission-free cars in 2030. “Europe has good opportunities to become a leader in the transition to sustainable mobility and governments and companies must work together to ensure that too.”
Rollout of charging infrastructure
Volvo is not alone in criticizing the subsidy policies of many governments in Europe. ACEA, the European umbrella organization of car manufacturers, advised countries earlier this year to invest more money in the charging infrastructure instead of just offering purchase subsidies or fiscal support measures for motorists who switch to an electric car. After all, the roll-out of the charging infrastructure is lagging far behind the sales of electric cars and in many countries, including the Netherlands, the plug-in car is already virtually competitive compared to cars with a combustion engine.
The Swedish car brand, which is owned by the Chinese Geely, expects half of the Volvo sold to be fully electric by 2025. The car manufacturer still has to make a big step. The car brand now only has one fully electric model for sale, the XC40 Recharge. A quarter of Volvo’s European sales are currently hybrid.
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