Volvo Cars CEO Offers Bleak Assessment of Year Ahead for Motor Industry

Date: 08 February 2025 - 22:13

News ID: ۱۳۶۷۰۹

BRUSSELS (Euronews) - CEO of Volvo Cars Jim Rowan has warned that 2025 would be a tough one for the motor industry. He also shared his views on tariffs and the development of electric vehicle sales.
He said that the group is “well-prepared but mindful” that 2025 is going to be a challenging year for the automotive industry.
It comes as the sector faces ongoing headwinds, including supply chain disruptions, as a result of semiconductor shortages, higher interest rates and prices curbing consumer demand, declining EV sales - as well as the threat of pending U.S. tariffs.
“The global car industry is facing several uncertainties: cyclical, structural, transformational and geopolitical,” Rowan said.
He added: “We are monitoring developments. We will continue with our long-held strategy of building our cars where we sell them, including adding EX30 production to our Ghent plant. Our full focus right now is on getting the production up and running during the first half of this year.”
Germany is among the European markets that experienced a decline in EV sales in 2024, after it was hit by increased competition from China, and the battery electric vehicle (BEV) subsidy program ending. A lack of charging infrastructure and relatively high EV prices has also contributed to falling sales.
“We are investing in a balanced product portfolio of pure BEVs and plug-in hybrid cars. In 2024 we increased our fully electric (BEV) sales share to 23% of total sales (versus 16% in 2023) and delivered the highest EV sales share of all legacy premium car manufacturers in 2024,” Rowan said.
“We make progress on our ambition to reach 50% to 60% electrified sales for the full year 2025, reflecting all cars with a plug. Our electrified sales accounted for 46% in 2024 (versus 38% in 2023),” he added.