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Volvo expects electric car margins to match conventional vehicles by 2025

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Global automakers are planning to increase the cost of electric vehicle technology by $ 300 billion over the next five to ten years, but recognized that higher parts costs and limited use in the early years will be profitable.

Volvo invests about 5 percent of its annual income, which is just over $ 1 billion a year, in the production of cars without electric cars and electric cars, and promised to release five all-electric cars to the market in the next few years.

He demonstrated the first, less than a month ago, made by the luxury brand Polestar, competing with the 3 Tesla model. This year, he also plans to launch an electric compact SUV under the Volvo brand, so that the company will receive 50% of its sales from all-electric cars by 2025.

"It’s very difficult to say whether we’ll have the same margin in 2025 as in 2015 ... because electric cars are very expensive,” said CEO Hakan Samuelsson told Reuters on the sidelines of the company's security exhibition. in Gothenburg.

"But I would be absolutely sure that we would have the same profit with electric vehicles as conventional combustion vehicles in 2025."

Samuelsson said lowering the cost of components such as batteries and lowering profits on conventional cars would help bring people closer together.



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