Aktiespararna questions Volvo's focus on electric cars after another major share price drop. Was the decision to drop diesel cars premature in light of falling demand for electric cars?
There is concern among Volvo Cars' shareholders. The organization Aktiespararna is now questioning the car brand's strategy.
Volvo stopped producing diesel cars a year ago. At the same time, demand for electric cars has fallen. Volvo's share price has also fallen significantly.
Volvo Cars recently held its annual general meeting in Gothenburg, Sweden, where the new CEO Håkan Samuelsson was welcomed. Chinese majority owner Li Shufu also attended.
The mood was marked by concern among many owners. The stock has fallen almost 70 percent. This happened under the leadership of former CEO Jim Rowan.
Under Rowan, Volvo stopped producing diesel cars altogether. Instead, the brand invested heavily in electric cars. This was a clear goal for the company.
Now Aktiespararna is expressing concern. They fear that Volvo may have made the wrong bet. Falling demand for electric cars is creating uncertainty.
Criticism of Volvo's electric car strategy
"They have had the goal of only having electric cars, a year ago they shut down the production of diesel cars and now you see that the demand for electric cars is falling," says Mats Ekberg from Aktiespararna.
He attended Volvo Cars' general meeting. From there, he shared his concerns with the news agency TT .
– Maybe they should have continued with diesel cars for a longer period, adds Mats Ekberg.
Volvo long stuck to the goal of producing only electric cars from 2030. This was under Jim Rowan's leadership.
But last fall, Volvo changed course. The strategy was adjusted significantly.
New electric cars on old platforms
Volvo is now launching several new electric cars. They are intended to strengthen the brand's position in the electric car market.
At the same time, the brand's petrol cars and plug-in hybrids are based on older technology. Some of the models have platforms that are around 10 years old.
Aktiespararna is concerned about the future of the car manufacturer, pointing to the declining demand for electric cars.
– Maybe they were a little too quick with electric cars, says Mats Ekberg to TT.
The decision to phase out diesel cars now seems potentially premature to some investors. Only time will tell whether Volvo's big push into pure electric power was the right way forward.
The challenges of market development and older platforms for combustion engines must be addressed.
On Boosted.dk you can read a lot about Volvo and their models. We have previously written about how a Volvo, for example, will not hand over a former dictator's car to itself. Read that story and find more news about Volvo on this page.
