Volvo to go all electric in 2019

Associated Press

HELSINKI

Volvo plans to build only electric and hybrid vehicles starting in 2019, making it the first major automaker to abandon cars and SUVs powered solely by the internal combustion engine.

CEO Hakan Samuelsson said the move was dictated by customer demand. It means that in two years, all new Volvo vehicles will have some form of electric propulsion.

The announcement comes as the global auto industry slowly moves toward electric-powered vehicles after more than a century of using engines that burn only fossil fuels. Even though sales are a fraction of conventional autos, companies must sell them to meet fuel economy and emissions regulations. In some markets electric vehicles are seeing increased demand.

Yet the transition to fully electric vehicles will take years. Although Tesla Inc. has announced a $35,000 electric car for the masses and General Motors Co. is selling the all-electric Chevy Bolt for a similar price, less-expensive hybrids are likely to sell more at least in the short run.

Still, other automakers are likely to follow Volvo’s announcement in a few years, said Sam Abuelsamid, senior analyst for Navigant Research, with luxury automakers leading the way.