Volvo exits Europe auto lobby group over sustainability stance

Volvo has followed Stellantis in exiting major European auto lobby group ACEA, citing differences in attitudes towards sustainability and the clean-up of the transport sector.

Stellantis encompasses brands such as Chrysler, Alfa Romeo, Citroen, Fiat, Jeep, Maserati, Lancia, Opel, Vauxhall, RAM, and Dodge and the departure of Volvo means that companies representing one quarter of Europe’s auto sales have left the lobby group.

While Stellantis claimed far more market share in Western Europe in the first five months of 2022 (21.5%), the move by Volvo underlines the growing shift in attitudes by carmakers towards electrification.

In a statement, Volvo said its ambitions for electrification are not ” fully aligned with ACEA’s positioning and way of working at this stage.

“We therefore believe it is better to take a different path for now.”

Volvo declared in March 2021 that there is “no future” for internal combustion engine (ICE) vehicles, and that it would sell only EVs by 2030.

In Australia, it already sells the XC40 Pure Recharge compact SUV which topped local April EV sales, and accounted for 18% of XC40 sales in June. Volvo also plans to introduce the C40 Recharge, which will be a dedicated electric model expected to land by the end of 2022 in Australia.

ACEA, led by BMW boss Oliver Zipse who is also the car lobby’s president, has been railing against the recent decision by the European Union to hold firm on a stone-cold target to phase out ICE sales by 2035.

While it agrees in principal with the targets, it says it is “only achievable with a massive ramp-up in charging and refuelling infrastructure, the association cautions.”

In a June statement, Zipse said: “The automobile industry will fully contribute to the goal of a carbon-neutral Europe in 2050. Our industry is in the midst of a wide push for electric vehicles, with new models arriving steadily. These are meeting customers’ demands and are driving the transition towards sustainable mobility.”

But he warned that “volatility and uncertainty” in the global market means “any long-term regulation going beyond this decade is premature at this early stage. Instead, a transparent review is needed halfway in order to define post-2030 targets.”

Volvo CEO Jim Rowan disagrees. “We’re going to be a full-electric company five years earlier than that [the EU’s planned phaseout], so, why wouldn’t we be public and vocal saying that we think this is the best thing for our business model, our customers and for the planet,” he told Automotive News Europe in an interview in June.

He also suggested another car lobby group may pop up to “corral industry thought leadership to get to get the best minds together from an industry point of view.”

Stellantis’ stance towards electrification, however, is somewhat more ambivalent. It says it wants to sell 100% battery electric vehicles in Europe by 2030, but only 50% in the US.

And it apparently wants a more “hands on ” approach to achieving that. Its June statement that announced its split from ACEA panned a “Freedom of Mobility Forum” forum that it says would allow it to shift “from lobbying towards a more direct interaction with the citizens and stakeholders.”