Volvo steers clear of Ford, Tesla’s EV price war

Jessica Thompson

Volvo will not follow Tesla and Ford in lowering prices for its electric vehicles anytime soon.

The automaker is seeing robust demand for its full-electric models, Chief Financial Officer Johan Ekdahl said in an interview Thursday.

“We feel comfortable in our pricing strategy and will not engage in price wars,” Ekdahl said.

Ford last month slashed the price of its electric Mustang Mach-E by an average of $4,500 in response to earlier cuts from Tesla, the biggest producer of EVs.

Analysts have said they expect more discounting across the industry as additional EV models come to market and manufacturers overcome supply chain issues that have curtailed production.

Only if prices for raw materials were to normalize would the automaker controlled by China’s Zhejiang Geely Holding Group consider adjusting prices, CEO Jim Rowan said in the same interview. “It’s not driven by demand,” he said.

The demand is really high for all our car, especially our BEVs [battery-electric vehicles],” Rowan previously told Automotive News Europe.

December was the strongest month ever in cars produced for Volvo, with a run rate of about 72,000, Rowan said.

Also, Volvo said last month that the starting prices for the updated XC40 and C40 EVs in Germany would rise to 47,500 euros from about 44,800 euros,

A spokesman attributed the 6 percent rise mostly to increase materials and logistics costs.

Leave a Reply

Your email address will not be published. Required fields are marked *