Volvo says it will only sell electric cars by 2030 and you’ll have to buy them online (VLVLY)

Volvo C40

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Volvo is the latest car company pledging to go all-in on electric vehicles. 

The carmaker announced plans Tuesday to phase out the production of gas-powered vehicles, including hybrids, by 2030. It will also move to only sell its fully electric cars online

Volvo is still committed to its previous plan to generate 50% of its global sales from EVs by 2025, and the other half from hybrids. The company said it plans to launch “several” new electric models in coming years. It currently sells one, the XC40 Recharge crossover, and unveiled its second, the C40 Recharge, on Tuesday. 

“There is no long-term future for cars with an internal combustion engine,” Volvo CTO Henrik Green said in a statement. “We are firmly committed to becoming an electric-only car maker and the transition should happen by 2030.”

Volvo also has an electric and high-performance division called Polestar, which sells a luxury hybrid and EV. The company said it cannot comment on how Tuesday’s announcement may affect future plans for Polestar. 

All fully electric Volvos will only be available to order online, with Volvo promising to “radically simplify” the process for ordering a car. Customers will be able to choose from pre-configured models that can be delivered quickly, Volvo said.

Volvo won’t phase out physical retail locations, however, as dealerships will still take delivery of vehicles and help with service and maintenance, a company spokesperson told Insider.

Cars bought online will also come with the “Care by Volvo” package that bundles in service, warranties, roadside assistance, insurance, and home charging options. But there has been some friction when Volvo has tried to introduce similar online offerings in the past. 

Care by Volvo used to be the name of the brand’s car subscription service, which got off to a rocky start in 2018 due to hiccups over insurance and other legal requirements that varied in each state. 

Amid tightening regulations on the sale of gas-powered cars in cities and countries around the globe, several carmakers have issued aggressive pledges to transition to all-EV lineups. General Motors plans to only sell EVs by 2035, while Ford announced in February that it plans to go all-electric in Europe by 2030

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