Mexican Media Brands
Volvo: Parity on EV, Piston Car Margins by 2025
Volvo Cars is “absolutely sure” its profit margins on electric cars will equal those for its internal combustion-powered vehicles by 2025, CEO Hakan Samuelsson tells Reuters.
#economics #hybrid
Share
Volvo Cars is “absolutely sure” its profit margins on electric cars to equal those for its internal combustion-powered vehicles by 2025, CEO Hakan Samuelsson tells Reuters.
But Samuelsson adds that those margins probably won’t be as good as those generated by the company in 2015 because EVs cost more. By 2025, he says, margins on piston-powered models are likely to shrink, presumably because it will become increasingly expensive to make such powertrains meet future emission standards.
Volvo isn’t alone. Reuters says the global auto industry has declared some $300 billion worth of spending on EV technology over the next 5-10 years, but carmakers predict a squeeze on profits until consumer demand for such vehicles builds momentum.
Volvo has said it is spending about 5% of its revenue to develop EVs and autonomous vehicle technologies.
RELATED CONTENT
-
Ford’s $42 Billion Cash Cow
F-Series pickups generate about 30% of the carmaker’s revenue. The tally is about twice as much as what McDonald’s pulls in.
-
Porsche Doubles EV Target for 2025
Porsche AG says about half the vehicles it sells by 2025 will be equipped with hybrid or all-electric powertrains, twice the ratio it forecast four weeks ago.
-
Mazda, CARB and PSA North America: Car Talk
The Center for Automotive Research (CAR) Management Briefing Seminars, an annual event, was held last week in Traverse City, Michigan.