Return of the Former Volvo Leader
Geely has once again invited former Volvo CEO Håkan Samuelsson to lead the automaker for two years. Samuelsson believes that electric cars are inevitable and will become cheaper in a decade. He also expressed the opinion that some Western automakers will not be able to adapt to the new conditions and may disappear completely.
Volvo’s Position on Electric Vehicles
Volvo, although it has delayed plans for a full transition to electric vehicles by 2030, acknowledges that the future lies in electrification, even if it takes longer than expected. The CEO of the Swedish brand predicts that due to the growing popularity of electric cars and the strengthening of Chinese manufacturers, some Western companies may face collapse.
Industry Transformation
Håkan Samuelsson, who again headed Volvo in April, is confident that a return to old technologies is impossible. He stated:
The industry will be electric – there is no going back. It might take longer in certain regions, but the direction is clear. In about 10 years, all cars will be electric and cheaper. New dominant players will emerge, similar to Ford, GM, Toyota, and Volkswagen in the past.
Samuelsson also added that two or three Chinese brands will become very powerful, which will complicate competition for Western manufacturers and provoke industry restructuring.
Volvo’s Strategy
To remain on the market, Volvo is investing in battery electric vehicles and hybrids, which will allow it to meet the demand for various types of electrified vehicles worldwide. According to the leader, hybrids will serve as an intermediate stage until charging stations become widespread. The transition to electric cars may continue after 2030, depending on infrastructure and demand.
Benefits of Chinese Partnership
Volvo has a unique advantage among European manufacturers because its parent company Geely is Chinese and a leader in the electric vehicle sector, owning brands such as Lotus, Zeekr, Polestar, and Lynk & Co. Samuelsson noted that the stronger the Chinese automotive industry becomes, the more valuable the partnership with Geely is.
He added:
Chinese brands already occupy more than half of the market in China and are entering Europe. This creates pressure on European and American manufacturers competing in a shrinking market. China, whether we like it or not, will be a major player in the automotive industry not only at home but throughout the world.
Electrification continues to gain momentum, and Volvo, with the support of Geely, could become one of the key players in the future. The growth of Chinese influence could lead to significant changes in the structure of the global automotive market, where traditional manufacturers will be forced to adapt quickly or risk being left behind. This could also contribute to the development of new technologies and a reduction in the price of electric cars, making them more accessible to consumers worldwide.