Volvo may have walked back its commitment to transition to an all-electric brand by 2030, but despite that, it still acknowledges that EVs are the way forward, even if it takes the industry a little longer than originally forecast to make the shift.

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As electrification begins to grow and brands from China establish themselves as serious global juggernauts, the Swedish automaker’s CEO predicts that some Western carmakers will collapse.

Since April, Volvo has been led by Hakan Samuelsson. The 74-year-old Swede had previously steered the carmaker for almost a decade but stepped down as boss in 2022, only to be brought back on a two-year contract to steer Volvo through choppy waters. Samuelsson believes that “there’s no turning back,” against the inevitable electric transition of the industry and that new dominant players will emerge.

Industry Upheaval Ahead

“The industry will be electric – there’s no turning back,” he told Bloomberg. “It may take a bit longer in some regions, but the direction is clear. In (about) 10 years, cars will all be electric and they will be lower cost. There will be new dominant players, exactly as Ford, GM, Toyota and Volkswagen were in the old world.”

“In the new world, there will be two or three very strong Chinese brands,” Samuelsson added. “That makes the room for the old ones tougher. So this will trigger a (wave of) restructuring. Some companies will adapt to new circumstances and survive. Others will not.”

An Electrified Future

To ensure it can survive, Volvo is investing heavily in battery-electric vehicles and plug-in hybrids, ensuring it can cater to demand for different electrified vehicles around the world. According to Volvo’s boss, plug-in hybrids will serve as an important “bridge until charging is everywhere,” noting that it “may take some more years beyond 2030,” before EVs can dominate, depending on customer demand and charging infrastructure.

Chinese Ties As An Advantage

Volvo is in a unique position among European car manufacturers as its parent company, Geely, is Chinese and among those brands at the forefront of the EV revolution as the owner of brands including Lotus, Zeekr, Polestar, and Lynk & Co. Samuelsson noted that “the stronger the Chinese car industry becomes, the more valuable our connection with Geely is.”

“Chinese brands are already more than half the market in China, and they are entering Europe. That puts pressure on Europeans and Americans, who are competing in a shrinking part of the market,” he added. “China, whether we like it or not, will be a very big player in the car industry in the future, not just in China.”