Volvo's Q2 Earnings Call Signals Hybrid, Electric Vehicle Future
July 24, 2017—During its Q2 2017 earnings call, Volvo reported a 12 percent increase in net sales ($10.7 billion), marking its delivery of 13 all-electric buses to Sweden as one of the highlights of the quarter.
“We see continued great interest in electric and hybrid solutions,” said Martin Lundstedt, CEO of Volvo Group, in a conference call with investors. “Even if it’s a slow translation into big volumes, more and more activity around this subject.”
Volvo signified it is moving toward an all-electric future. Starting in 2019, all Volvo models launched will be electric or hybrids, making it the first major traditional automaker to set a date for phasing out vehicles powered solely by the internal combustion engine. Volvo Cars plans to sell one million electric vehicles by the year 2025.
Early electric efforts have shown promise, Lundstedt. The city of Malmö in southern Sweden ordered 13 Volvo 7900 electric buses last month, which to date is the largest single order placed with the company so far. The buses are 40 feet long, designed for city travel with a low floor and three doors. The bus offers 80 percent lower energy consumption than a corresponding diesel bus, and thanks to a special OppCharge technology system, the onboard lithium ion batteries can be charged at the end stops of routes in under six minutes.