Volvo believes in sustainability, but it’s a company, too. As a company, Volvo has committed itself to finding that “golden combination” of sustainability and profitability, reducing the use of harmful plastics, boosting recycling efforts, and aiming to make half its line-up fully electric by 2025. Its first pure EV– an electric Volvo XC40 crossover– is expected to land next year, and Volvo believes it will be profitable on day 1.
“From day one (it will be profitable). I think we will have no intention or ambition to sell electric cars with losses,” Volvo CEO Håkan Samuelsson told the media when asked if he could make money selling a $50,000 electric XC40. “We are planning that should be a profitable car.”
If that happens, it will be a huge win for Volvo. Both from a sustainability/PR standpoint and a business one, as well, since so many other companies have traditionally seen EVs as loss-leaders for their brands. Which isn’t to single out Ford, specifically, but– well, you know.
What do you think? Will Volvo be able to leverage the economies of scale created by sharing technology with Geely to deliver a win here, or is the goal of day 1 profitability just a bit too much for the electric XC40? Let us know what you think in the comments section at the bottom of the page.