CEO of a Chinese-owned brand Claims Chinese EV Surge Will Eliminate Certain Western Brands | Carscoops

      Volvo considers plug-in hybrids to be a crucial transition towards a future with widespread EV charging infrastructure.

      Geely has reinstated former Volvo CEO Hakan Samuelsson to lead the company for the next two years.

      Samuelsson asserts that electrification is unavoidable and that it will reduce vehicle costs within a decade.

      He warns that some Western automakers might struggle to adapt and could cease operations entirely.

      Though Volvo has revised its commitment to becoming an all-electric brand by 2030, it nonetheless recognizes that electric vehicles are essential for the future, even if the shift takes longer than initially predicted.

      As electrification accelerates and Chinese brands establish themselves as significant global players, the CEO of the Swedish automaker anticipates that certain Western manufacturers may fail.

      Since April, Volvo has been under the leadership of Hakan Samuelsson. The 74-year-old Swede previously guided the company for nearly ten years before stepping down in 2022 and later returning on a two-year agreement to navigate Volvo through challenging times. Samuelsson believes that there is no reversal in the industry's inevitable electric transition and that new key players will emerge.

      Industry Turmoil Ahead

      “The industry will be electric – there’s no going back,” he told Bloomberg. “Some regions may take longer, but the trajectory is evident. In about ten years, all vehicles will be electric and at lower prices. New dominant players will arise, similar to what Ford, GM, Toyota, and Volkswagen represented in the past.”

      Samuelsson added, “In the future, there will likely be two or three very strong Chinese brands, intensifying competition for the traditional manufacturers. This will lead to a wave of restructuring. Some companies will adapt and survive, while others will not.”

      A Electrified Future

      To ensure its viability, Volvo is making significant investments in battery-electric vehicles and plug-in hybrids to meet global demand for various electrified options. According to the CEO, plug-in hybrids will play a vital role as a "bridge until charging becomes ubiquitous," suggesting that widespread EV adoption may take several years beyond 2030, influenced by customer demand and charging infrastructure development.

      Chinese Ties As An Advantage

      Volvo holds a distinct position among European automakers, as its parent company Geely is Chinese and at the forefront of the EV movement, owning brands like Lotus, Zeekr, Polestar, and Lynk & Co. Samuelsson emphasized that "the stronger the Chinese automotive sector becomes, the more valuable our relationship with Geely is."

      "Chinese brands already make up over half the market in China and are entering Europe, creating pressures on European and American companies competing in a diminishing segment of the market," he noted. "Whether we embrace it or not, China will inevitably be a significant player in the automotive industry in the future, not just within its own borders."