SwedenLivingWorld world_2_fill WorldBusiness BusinessSports sports-soccer SportsEntertainmentEntertain

Volvo's CEO Martin Lundstedt: "Europe must take action"

Europe has fallen behind the USA and Asia. This is one of the reasons why the sales of both electric cars and electric trucks have stalled, believes AB Volvo's CEO Martin Lundstedt. The green choices must become profitable, he says.

» Updated: 30 September 2024, 14:12

» Published: 23 September 2024

Volvo's CEO Martin Lundstedt: "Europe must take action"
Photo: Adam Ihse/TT

The latest news about the crisis in electric car sales in Europe has been following each other. Similarly, the green transition on the truck side has also faced headwinds, notes Martin Lundstedt.

I think it's a short-term problematic situation now, maybe for the next... hard to say, but in the coming years, he says in connection with the Industry Day in Gothenburg.

According to Martin Lundstedt, there is currently an imbalance between supply and demand, which means that manufacturers' green alternatives are not selling in sufficient volumes.

Our customers have relatively tough margins, so it has to be worth making a green choice. If those parameters aren't there, there's no demand and then you get low volumes, he says.

"We have no choice"

Therefore, the Volvo CEO is calling for clearer and faster political decisions.

Europe must come to grips with sustainable competitiveness that is long-term and more workshop than powerpoints, says Martin Lundstedt.

We have no choice. We have to transform this society and we have to do it quickly. We see it among our customers and customers' customers that it's what they want, but they need to have competitive solutions.

Volvo Cars CEO Jim Rowan agrees when he is interviewed on stage later and calls for, among other things, better infrastructure for charging.

There has been far too much talk about what we need to do and too little talk about how we're going to do it. It applies to both industry and governments.

"Bend in the curve"

The electrification of industry has been debated lately. Not least after battery manufacturer Northvolt's crisis. At the same time, AB Volvo has postponed plans for a new battery factory in Mariestad and Volvo Cars has backed away from the goal of being fully electric by 2030.

In Germany, giant Volkswagen is in crisis, and competition from the USA and Asia is extremely tough. To TT, Ulf Kristersson (M) describes the situation as a bend in the curve.

I perceive that everyone is entirely unanimous about the direction. Electrification is the way to go. But there is uncertainty about the exact pace, and that's not surprising, says the Prime Minister.

TT: What can the government do to support the industry?

We must ensure that we have an energy distribution and energy production that can handle our fossil-free needs, and we're not there yet. As long as we have such fundamental problems, many other things will almost be perceived as a luxury problem, says Ulf Kristersson.

Tags
TTT
By TTThis article has been altered and translated by Sweden Herald

More news

Took a tough stance on crypto companies - resigns
1 MIN READ

Took a tough stance on crypto companies - resigns

Ingvar Carlsson on PG: "A very loyal friend"
2 MIN READ

Ingvar Carlsson on PG: "A very loyal friend"

No Wage Guarantee in American Process
1 MIN READ

No Wage Guarantee in American Process

He became "PG" to the entire Swedish people
3 MIN READ

He became "PG" to the entire Swedish people

PG Gyllenhammar has died: "meant a lot"
1 MIN READ

PG Gyllenhammar has died: "meant a lot"

Unstable US stock market ends on a plus
1 MIN READ

Unstable US stock market ends on a plus

Temu's owner shows its hand
1 MIN READ

Temu's owner shows its hand

Nvidia rises in pre-trading on Wall Street
1 MIN READ

Nvidia rises in pre-trading on Wall Street

Reconstruction in the USA to save Northvolt
3 MIN READ

Reconstruction in the USA to save Northvolt

Northvolt: Negotiations are still ongoing
3 MIN READ

Northvolt: Negotiations are still ongoing

Higher Compensation for Job Interviews in Another Location
1 MIN READ

Higher Compensation for Job Interviews in Another Location

Vehicle Giant Warns of Challenges in 2025
1 MIN READ

Vehicle Giant Warns of Challenges in 2025

Unchanged interest rate in Turkey
1 MIN READ

Unchanged interest rate in Turkey

Trump anxiety in the EU over US tariffs
3 MIN READ

Trump anxiety in the EU over US tariffs

Weak demand for scrapping premium
1 MIN READ

Weak demand for scrapping premium

E-fuel company takes in half a billion
1 MIN READ

E-fuel company takes in half a billion

New Report Boost for AI Giant Nvidia's Share
2 MIN READ

New Report Boost for AI Giant Nvidia's Share

Stockholm Stock Exchange Turned Upwards
1 MIN READ

Stockholm Stock Exchange Turned Upwards

Bitcoin closer to the dream limit
1 MIN READ

Bitcoin closer to the dream limit

Higher fee to stop burning of plastic
2 MIN READ

Higher fee to stop burning of plastic