With its July 5th announcement that it would cease production of internal combustion-powered vehicles by 2019, Volvo became the first major automobile maker to go fully electric. Other leading automakers have been making significant investments to advancing electric vehicle technology, including Volkswagen’s pledge to introduce 30 all-electric vehicles over the next 10 years and Daimler’s planned investment of €10 billion in the development of 10 electric vehicles by 2025, but none have set a firm date for the transition to entirely electric production.

This announcement puts Volvo in a league apart from most of its traditional, global competitors, its new electric strategy aligning it more closely with EV pioneer Tesla, which recently surpassed General Motors and Ford to become the most valuable car company in America. While the two industry giants continue to dwarf Tesla in terms of overall production, Ford selling 6.6 million vehicles in 2016 and GM 10 million compared to Tesla’s 76,000, the company’s high valuation, $51 billion to GM’s $50 billion and Ford’s $45 billion, signals the market’s faith in the electric vehicle manufacturer as a sign of an all-electric future, an opinion echoed by automotive industry executives in a recent survey in which 90% of the respondents saw EVs dominating the market by 2025.

With Volvo’s announcement, these predictions are now finally being realized in concrete strategy decisions which will only increase pressure on others in the industry to follow suit.

The New York Times covers Volvo’s announcement 

More on VW’s EV plans 

Daimler’s investment plans detailed 

The Vox explores what lies behind Tesla’s valuation 

KPMG survey of automotive executives 

All news

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