Volvo's competition from companies like Tesla Inc., which is now mass producing Model 3's, is forcing the major auto maker to abandon the technology that brought it to fame.
Volvo is the first major auto maker to abandon the technology that has powered the industry for more than a century. Hakan Samuelsson, president and chief executive of Volvo Cars, said in a statement that the move “marks the end of the solely combustion engine-powered car,” reiterating his target of selling one million electric cars and hybrids by 2025. “When we said it, we meant it. This is how we are going to do it.”
I'm confident that nearly all auto makers are preparing in a major shift toward electric vehicles, however, I was not expecting the abandonment of combustion engines.
Industry analysts estimate that rising costs of developing combustion engines that meet ever-stricter emissions regulations could make some electric models more affordable as soon as 2025. With a starting price of around $35,000, the Tesla Model 3 that launches this week is only slightly more expensive than BMW AG’s 3-Series sedan with a gasoline or diesel engine.
Will combustion powered vehicles be only available to the wealthy and rich? As electric vehicles become the norm, will auto makers once famed for their high performance gas guzzlers (BMW, Porsche, Ferrari, etc.) also move on to electric?
Interestingly enough
Tesla, which only makes electric cars, sold around 84,000 cars last year, but its market value has surpassed those of Ford, General Motors Corp and BMW, which sell millions of cars each year.
TESLA has dropped 7% just today as investor are starting to realize that perhaps the company is overvalued and won't be leading the electric car revolution; it only started it.
What do you guys think of the future of gas cars? Will old gas powered sports cars truly embody vintage? What about performance vehicle auto makers? Will they make the same moves Volvo is making? Finally, is Tesla going to be leading the electric car revolution or will it be a more established brand after all?
Bump^
interesting
Volvo Goes Full Electric (Originally Posted: 07/06/2017)
Yesterday it was announced that Volvo would be the first mainstream automobile company to start phasing out the traditional combustible engine. This is a strong strategy for the Chinese and European markets as interest in battery-powered cars has risen. While in the United States, the market for electric vehicles is very small, and more Americans are buying more SUVs and trucks with the persistence of low gasoline prices.
While Ford said they will introduce a battery-powered SUV by 2020, do you see American automakers going full electric in the next 10-20 years? Somehow I don’t see the appeal of a electric F150, but maybe my kids will.
Also, do you think that this could have an effect on Tesla's high valuation if a portion of it can be due to investors viewing owning Tesla as owning a part of the future of the automobile industry?
Maybe not fully in the next 10-20 years as I think charging stations need to become as ubiquitous as gas stations first, but inevitably the time should come where gas guzzling cars are the exception not the norm
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