Volvo is forging ahead with its electrification strategy, with its CEO, Håkan Samuelsson, confidently predicting that all cars will be electric within the next decade. This vision, outlined in a recent interview, positions Volvo at the forefront of the automotive industry's shift away from traditional internal combustion engines. While many automakers express concerns about the European Union's 2035 ban on new internal-combustion car sales, Volvo embraces the challenge, asserting its readiness for a fully electric future. Samuelsson acknowledges that the transition might take longer in some regions, but he firmly believes that the direction is clear and irreversible, leading to lower-cost electric vehicles.

This proactive approach by Volvo stands in stark contrast to the views of other prominent European automotive leaders, who have voiced skepticism and criticism regarding the rapid pace of electrification. While brands like BMW and Mercedes-Benz are also developing electric models, their CEOs maintain that internal combustion engines will continue to have a role in the market. Volvo, however, sees plug-in hybrids as merely a bridge to a purely electric future, highlighting a fundamental difference in strategic outlook among major players in the global automotive landscape. The company's commitment to this transformation, despite potential short-term challenges like tariffs, underscores its long-term bet on electric mobility and its potential to reshape the industry.

The Inevitable Shift to Electric Vehicles

Volvo's leadership is championing an accelerated transition to electric vehicles, moving beyond its initial target of having 90-100% of sales comprise electric and plug-in hybrid models by the decade's end. CEO Håkan Samuelsson has emphatically declared that the entire automotive sector is on an irreversible path towards electrification. He envisions a scenario where all automobiles will be fully electric within approximately ten years, emphasizing that this shift will also lead to more cost-effective vehicles. This ambitious timeline reflects Volvo's unwavering commitment to sustainable transportation and its belief in the rapid evolution of electric vehicle technology and infrastructure. The company is actively introducing new all-electric models, such as the ES90, and views plug-in hybrids like the XC70 as essential stepping stones in this journey, bridging the gap to a completely electric fleet.

Despite acknowledging that the pace of adoption may vary geographically, Samuelsson remains convinced that the trajectory towards electric mobility is firmly set. He suggests that the market will increasingly favor electric options due to technological advancements and evolving consumer preferences, which will drive down production costs. Volvo's strategy involves continuous innovation and the introduction of new electric vehicles to meet the growing demand, while also considering how this transition might impact its existing product lines, including traditional models like wagons. The company is positioning itself to be a leader in this electric revolution, anticipating a market where traditional internal combustion vehicles will become obsolete and new competitive dynamics, particularly from emerging Chinese brands, will reshape the industry landscape.

Contrasting Industry Perspectives and Volvo's Preparedness for 2035

Volvo's confidence in meeting the European Union's 2035 deadline for phasing out new internal combustion car sales is a notable differentiator within the automotive industry. Unlike some of its European counterparts, Volvo's CEO, Håkan Samuelsson, sees this target as achievable and views the electric transition as a clear path forward. He has publicly stated that while the full shift to electric might take slightly longer than initially anticipated, the direction is definitive. Volvo plans to continue offering plug-in hybrid models as a transitional phase, describing them as "electric cars with a backup engine," while simultaneously expanding its range of fully electric vehicles. This two-pronged approach demonstrates Volvo's pragmatic yet resolute commitment to its electrification goals, even as it navigates competitive pressures and the potential for certain traditional models to be phased out.

This forward-looking stance by Volvo starkly contrasts with the reservations expressed by other major European automakers. For instance, the CEOs of BMW and Mercedes-Benz have openly criticized the EU's aggressive electrification timeline, suggesting that a complete ban on internal combustion engines by 2035 is premature or even a "big mistake." While these manufacturers are also investing in electric vehicle development, they advocate for a more gradual transition, arguing for the continued relevance of traditional powertrains. Samuelsson, however, maintains that companies must adapt or risk being left behind, foreseeing a future where only agile and innovative players will thrive, with strong Chinese brands emerging as significant competitors in the European market. This divergence in strategic vision highlights the complex and rapidly evolving landscape of the global automotive industry, as companies grapple with regulatory pressures, technological advancements, and shifting market demands.

Mercedes-Benz is making a significant change to how it names its electric vehicles, opting to remove the 'EQ' branding. This decision, announced by CEO Markus Schäfer, signifies a move towards a more straightforward and integrated approach for its electric lineup, as the company believes consumers now have a clearer understanding of EV technology.

Mercedes-Benz Simplifies EV Nomenclature at IAA Mobility Show

During the IAA Mobility show in Munich, Germany, on September 11, 2025, Mercedes-Benz CEO Markus Schäfer confirmed the company's plan to discontinue the 'EQ' designation for its electric vehicles. This strategic shift means that new electric models, including those previously anticipated to carry the 'EQ' prefix like the EQS, will now simply be identified as 'Electric' versions of their respective classes. For instance, the electric G-Class, which was previously known as the G 580 with EQ Technology, will simply be referred to as the 'G 580 Electric' or similar, streamlining its identity within the brand's portfolio.

Schäfer elaborated in an interview with Newsweek that the initial purpose of the 'EQ' brand was to differentiate Mercedes' early electric offerings. However, as electric vehicles become more commonplace and visually similar to their combustion-engine counterparts, this distinction is no longer deemed necessary. The company's marketing department is now tasked with implementing this change across its future vehicle lines, reflecting a belief that simplicity will better serve consumers in the evolving automotive landscape.

This move highlights a broader trend in the automotive industry: as electric vehicles become mainstream, manufacturers are increasingly integrating them into existing product lines rather than segregating them under distinct sub-brands. This strategy aims to reduce consumer confusion and make the transition to electric mobility more seamless, aligning with the growing demand for EVs, particularly among younger buyers.

This strategic shift by Mercedes-Benz to simplify its EV naming convention offers a valuable lesson in brand communication and market adaptation. In an rapidly evolving automotive landscape, clarity and straightforwardness can be more effective than complex branding. By dropping the 'EQ' moniker and simply designating vehicles as 'Electric,' Mercedes is not only making its product lineup more intuitive for consumers but also acknowledging the growing maturity of the EV market. This pragmatic approach suggests that sometimes, the most effective solution is the simplest one, paving the way for broader acceptance and easier understanding of new technologies.