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Volvo Cars has walked back its plan to only sell electric vehicles by 2030. The automaker said on Wednesday that it wants to be more “pragmatic and flexible” with its eco-conscious goals, even as leading climate scientists say they anticipate global heating will blow past international targets.
Volvo, which is owned by the China-based Geely Holding, said that “full electrification remains a key pillar of Volvo Cars’ product strategy.”
“While Volvo Cars will retain its position as an industry leader in electrification, it has now decided to adjust its electrification ambitions due to changing market conditions and customer demands,” the company said.
Many leading automakers announced aggressive electrification pledges as lawmakers pushed to decarbonize transportation through subsidies and pending bans on combustion-engine vehicles. However, Volvo now joins Mercedes-Benz and Ford in walking back their stated goals, as EV sales growth (mostly) slows.
Volvo said it hopes its fleet will be at least 90% electric by 2030, but will allow for a “limited number of mild hybrid models to be sold, if needed.”
The company currently has five electric cars on the market and another five in development.
“We are resolute in our belief that our future is electric,” Jim Rowan, chief executive of Volvo Cars, said in a statement. “An electric car provides a superior driving experience and increases possibilities for using advanced technologies that improve the overall customer experience. However, it is clear that the transition to electrification will not be linear, and customers and markets are moving at different speeds of adoption.”
Volvo stock was largely unaffected by the announcement, taking a 1% dip by 11:30 a.m. Wednesday morning.