Skip advert
Advertisement

Post-coronavirus subsidies for non-electric cars would be a waste, says Volvo boss

Hakan Samuelsson believes it’s naive to expect everything to return to normal after the coronavirus, and the future is electric.

Best small 4x4s to buy

Any scrappage-like schemes to subsidise sales of conventionally powered cars after the coronavirus crisis risk being “a waste of money”, the boss of Volvo has argued.

Hakan Samuelsson said that only restarting or enhancing existing incentives on electric vehicles would help manufacturers and respond to consumer trends. “If you do scrappage schemes then you should do what you would do anyhow,” Samuelsson told the Financial Times Global Boardroom virtual conference. “It’d be good to promote new technology - good for governments to support electric vehicles, which are more expensive in the first years.”

He added, “I believe that after coronavirus it would be naive to expect everything to return to normal - to think that consumers will come back into showrooms asking for petrol or diesel cars. And if governments in some way subsidise a return to the old world, it’ll be a waste of money. They should use the money to promote new technology, as they were planning to do before coronavirus.”

Advertisement - Article continues below

Samuelsson said that Volvo, which has restarted production at many of its factories, had been “encouraged” by the recovery of demand for cars in China. But he conceded that the global car market was running at a fraction of its regular capacity. “The problem is not production; the problem is the demand from customers,” he said. “We cannot produce more than we sell. So right now we have couple of days per week when we shut down and send people home.”

He said that “revenge buying” could become a trend, where people exasperated at long periods confined to home are more ready to make purchases once lockdown has lifted. “People need to be able to move, come out of quarantines and to our showrooms,” Samuelsson said. “But based on the China experience it’ll bounce back quickly.”

Has coronavirus changed your car-buying plans? Take our survey and tell us how...

Skip advert
Advertisement
Editor-at-large

John started journalism reporting on motorsport – specifically rallying, which he had followed avidly since he was a boy. After a stint as editor of weekly motorsport bible Autosport, he moved across to testing road cars. He’s now been reviewing cars and writing news stories about them for almost 20 years.

Find a car with the experts

Skip advert
Advertisement

Recommended

Best electric car deals: today's top discounts and incentives on new EVs
Best electric car deals - header image

Best electric car deals: today's top discounts and incentives on new EVs

Making the switch to an EV? These car brands have an offer (or two) for you
Best cars & vans
28 Apr 2025
Best new cars coming soon: all the big new car launches due in 2025, 2026 and beyond
Best new cars coming soon - header image

Best new cars coming soon: all the big new car launches due in 2025, 2026 and beyond

These are the most important new cars headed our way, from brands including Audi, BMW, Dacia, Ferrari, Ford, Skoda and more
Best cars & vans
8 Apr 2025
Gaussian splatting helps Volvo avoid real-life car accidents
Volvo EX90 - front cornering alt

Gaussian splatting helps Volvo avoid real-life car accidents

Oddly named 3D tech creates lifelike virtual scenarios to test driver-assistance systems
News
19 Mar 2025
New Volvo EX60 partly unveiled in clay model form
Volvo EX60 - clay teaser

New Volvo EX60 partly unveiled in clay model form

It’s the first time Volvo has given us a look at its upcoming electric XC60 alternative
News
7 Mar 2025

Most Popular

Chinese cars can’t match their European rivals when it comes to engineering
Opinion - Shanghai Auto Show

Chinese cars can’t match their European rivals when it comes to engineering

This new brand of cars might have battery tech on their side, but European buyers want much more than that
Opinion
25 Apr 2025
New electric car MoT tests could be coming to the UK
Tesla Model X on two-post inspection ramp

New electric car MoT tests could be coming to the UK

New technology and driver assistance systems require changes to annual testing, says EC
News
25 Apr 2025
Car Deal of the Day: the one and only Nissan Juke for less than £150 per month
Nissan Juke - left cornering

Car Deal of the Day: the one and only Nissan Juke for less than £150 per month

Nissan’s best-selling small SUV just got a little bit cheaper and is our Deal of the Day for 26 April
News
26 Apr 2025