Volvo predicts no demand for ICE cars

Volvo predicts no demand for ICE cars

May 24, 2020 0 By autotimesnews

After removing the restrictions, buyers will not flood showers in search of gasoline or diesel cars, says Hokan Samuelsson, so it would be nice to promote electrification.

The head of Volvo said that it would be “naive” to expect that consumers would again be in car dealerships to buy gasoline or diesel cars after unlocking due to coronavirus. Speaking at a recent Financial Times Global Boardroom conference, Hokan Samuelsson described the idea of ​​developing recycling schemes to subsidize ICE car sales as a “waste of money.”

“Electrification will go faster. It would be good to promote new technologies – it is good for the authorities to support electric cars, which were more expensive in the early years, ”continued Samuelsson.

He also acknowledged that weak demand is a more serious problem than resuming production: Volvo’s main plant in Sweden is currently operating in a three-day mode.

“Demand in Europe is about 30% of normal, but demand in China is 20% higher than before the virus. If these signals are correct, they speak of a good recovery. I really hope that it is, and everything else will be a disaster for business. ”

The leader of the Swedish company also emphasized the concept of “revenge shopping,” which helps restore US sales when consumers who are tired of blocking restrictions are more interested in buying a new car for a psychological recovery. The crisis also revealed the problem of obtaining components from one country. According to Samuelsson, Europe and the United States need to have more jobs in production. We need to build cars where we sell them – do not rely on China to build everything.