For the first time a traditional vehicle manufacturer is beginning to completely phase out conventional combustion engines. Volvo said all new models will include an electric motor from 2019-2021. Five fully economic models are expected to be produced as well as a range of hybrid vehicles. However, Volvo will still be manufacturing earlier models that include combustion engines.
Manufacturers must take notice to the shift in automotive manufacturing. Recently, news broke about the new all electric Aston Martin. The article made reference to shifting trends in automotive manufacturing. Businesses tasked with manufacturing components for combustion engines in vehicles will need to be agile and react to these trends before even more automakers begin making the move to electric. Volvos’ announcement comes just days after the Aston Martin electric vehicle story broke and shows just how quickly the industry is transforming.
Hakan Samuelsson, Chief Executive of Volvo’s car making division stated, “This announcement marks the end of the solely combustion engine-powered car, – People increasingly demand electrified cars, and we want to respond to our customers’ current and future needs.” http://bit.ly/2spYV7D
The new battery powered Volvo vehicles will initially be manufactured in China but the company has plans to bring production over to Europe and a new factory their building near Charleston, South Carolina.
Even with this dramatic announcement by Volvo, it is still expected to take quite some time before it becomes common for the average consumer to own an all-electric vehicle. However, the sooner a manufacturer can meet customers new demands, the better chance they will have to thrive in the business environment.
Manufacturing has taken incredible steps forward and so too have their customers. Shifting trends in industries such as automotive could have an impressive impact on business and the economy as a whole. Manufacturers that refuse or aren’t agile enough to meet changing demand run the risk of falling behind and fading away. Businesses that step up to meet these emerging challenges have the opportunity to capitalize on emerging markets and take their position as an industry leader.
Be sure to check back on MFG Talk Radio soon for the latest trends and industry developments having an impact on the global manufacturing industry.