Volvo CEO: Strict emissions laws will force European carmakers to stop making diesel vehicles in next 15 years
Increasingly stringent emissions laws will force European automakers to stop manufacturing diesel vehicles in the next 15 years, the chief executive of Swedish automaker Volvo told Handelsblatt in an interview.
“Diesel is becoming more and more expensive,” Håkan Samuelsson said. “We will have to rely on an alternative.”
Mr. Samuelsson said Volvo will unveil an electric car in 2019 and plans to have 1 million of the vehicles on the road within six years.
“In Europe, we won’t see pure internal combustion engines anymore in 15 years,” he said.
The company is moving towards autonomous driving, and electromobility: the two areas where most European car makers see the best returns.
Volvo, which is owned by Chinese company Geely, recently was able to sign a widely-acclaimed collaborative agreement with ride-hailing company Uber, to deliver self-driving cars equipped with technology from Uber.
Mr. Samuelsson said that by 2020 or 2021, autonomous driving will be possible on motorways.
If we are viewed as a luxury brand in Germany, then we can present ourselves everywhere with higher credibility.
HÅKAN SAMUELSSON
CEO, VOLVO
With the simple Scandinavian design of its all-terrain vehicles, Volvo has been able to retain the loyalty of a core of customers. But the company has to attract new buyers in order not to remain a niche player, and is targeting Germany.
“Germany is a key market,” he said. “If we are viewed as a luxury brand in Germany, then we can present ourselves everywhere with higher credibility.”
Mr. Samuelsson, who used to run German truck manufacturer MAN, feels at home in Germany, but he is realistic about Volvo’s chances. He doesn’t expect Volvo to overtake the German premium manufacturers.
“But there are customers who want something else besides an Audi, BMW or Mercedes,” he said.
He hopes to sell 40,000 cars in Germany this year.
Mr. Samuelsson’s company has just introduced the V90 Cross Country, a mixture of sports-utility vehicle and limousine. Volvo’s range of models has been updated. This year, it expects sales to increase by some 10 percent to more than half a million. It’s targeting sales of 800,000 cars by 2020. At that point Volvo will need new factories and models, he said.