The Swedish car manufacturer Volvo is becoming an all-electric car brand.
From 2030, only cars with electric drives and batteries will be sold, the company based in Gothenburg announced.
CEO Håkan Samuelsson had already indicated last week that Volvo would concentrate on the development of electric mobility in the future.
"Instead of investing in a shrinking business, we prefer to invest in the future - electrically and online," he said, explaining the decision.
In addition to saying goodbye to the internal combustion engine, the automaker has announced a second, revolutionary step for the industry: In future, Volvo will only sell its cars online - preferably as subscription or leasing vehicles.
Anyone who wants to buy the car in cash or by credit can still do so, and the dealer network is also to remain in place for the time being.
But with the focus on online trading, the manufacturer is clearly moving in a direction that the industry pioneer Tesla has already taken.
Experts see online trading and subscription solutions as a goal for the entire industry.
With its two subsidiary brands Polestar and Lynk & Co, Volvo has been testing both principles for a long time.
For the online brand Lynk, the focus is on subscription, and Polestar's electric cars are only available in the webshop.
When it comes to drives, all three brands concentrate on hybrids and all-electric cars.
In a European comparison, Volvo is at the forefront of the electric pioneers with the exit from combustion engines.
The big corporations around the world are currently racing to find the earliest exit date.
They are driven by the climate goals of the EU, but also the USA and China.
Source: WORLD infographic
It is clear that significant reductions in CO2 emissions by 2030 can only be achieved through massive use of electric cars.
It remains to be seen whether technological leaps in the 1930s or 1940s will make a switch to alternative, climate-neutral fuels possible.
Many car brands are now committed to it.
"There is no longer a long-term future for cars with internal combustion engines," says Volvo's chief technology officer Henrik Green.
“We are determined to become a pure electric car manufacturer by 2030.” So far, only the British niche supplier Jaguar is aiming for full electrification in Europe within this decade.
His daughter Land Rover is set to go fully electric in the early 1930s.
The larger corporations are sometimes planning significantly more time for the transition from gasoline and diesel drives to purely electric vehicles.
Most - like Volvo - use plug-in hybrids as a transition technology.
On the one hand, these wagons help manufacturers achieve the EU's CO2 fleet targets.
On the other hand, there is hope in industry that users of plug-in hybrids will get used to all-electric driving.
The next car they could buy was an all-electric vehicle.
Six percent of vehicle buyers in Europe did so in January.
With the sharp rise in sales figures for e-cars, the change from combustion to e-drives is now picking up speed.
A current overview by McKinsey shows that a dozen well-known manufacturers have now committed to making the switch in the 1930s or even earlier.
Today the sales of these companies together make up 35 percent of the global passenger car market.
From the point of view of the consultants, an early determination makes it easier for the company to position itself with customers, investors and business partners.
Such a decision signals innovation leadership in the market.
On the other hand, the companies are ruling out other sustainable combustion solutions such as hydrogen or e-fuels.
Such solutions would still be accessible to Volvo in the future.
The company is handing over the development and production of internal combustion engines to its Chinese sister company Geely.
Both belong to the holding company of the Chinese billionaire Li Shufu.
A long-planned merger between the two auto companies was canceled last week.
Instead, the European subsidiary is now a pure electric supplier, while Geely offers the entire range of drives.
In addition to the Volvo units, the group will in future also have engines from Mercedes-Benz in its range.
The Stuttgart-based company has also brought some of its engine variants for diesel and gasoline into a joint venture with Geely, which is to produce drives for both brands.
Li Shufu is not only a Volvo owner, he is also one of the largest shareholders in the Daimler Group.
As with electrification, Volvo is also advancing faster than others when it comes to online retailing.
The new, all-electric model Volvo XC40 Recharge Pure Electric will only be sold online from 2022.
It should be the same with future electric cars.
Instead of buying the car, customers should, if possible, take out the quarterly cancelable subscription for 769 euros per month.
It includes insurance, maintenance and warranty.
The drivers only have to pay for the electricity themselves.
The leasing rate for 36 months should be 699 euros per month.