Volvo CEO Jim Rowan often gets asked how his nearly 100-year-old company is going to compete with electric vehicle startups.
He starts his reply by making a valid point: "Most of these guys are not making any money."
Based on that he then asks: "So, how long are they going to be around?"
The EV graveyard already includes brands such as Fisker and Lordstown Motor.
The list of money-losing EV makers includes Lucid, Rivian, Nio and VinFast.
Rowan sees some other weaknesses that EV startups need to overcome.
"They have one technology, they have maybe one or two models and they have no dealership or service network," he said.
Volvo, he points out, has SUVs, sedans and station wagons equipped with battery-electric, plug-in-hybrid and mild hybrid powertrains that are sold in 80 countries at more than 2,500 dealerships.
"That gives us access to over 50,000 brand specialists and 10,000 service bays," he added.
The expansive retail network is crucial, but probably even more important to Volvo is that its push to diversify its lineup is being rewarded.
A decade ago the majority of the cars it sold in Europe were diesels and it only sold gasoline-powered cars elsewhere.
Although Volvo debuted its first plug-in hybrid diesel in 2012 under former CEO Stefan Jacoby, the transition to electrified powertrains really accelerated under Jacoby's successor, Hakan Samuelsson.
In July 2017, Samuelsson outlined Volvo's aggressive transition toward electrification, announcing that it would stop further development on diesels at a time when nearly half of all new cars sold in Europe were equipped with the powertrain.
The move coincided with growing pressure on the powertrain, including the threat of banning diesels from city centers in Europe.
By 2021, Volvo announced its plans to be an electric-only brand by 2030.
Although the fervor around full-electric models has cooled for many automakers, Volvo's growing range of EVs is succeeding. Under Rowan, the EX30 became the No. 3-selling full-electric car in Europe in the first half behind the Tesla Model Y and Model 3. Meanwhile, VW brand's ID3 and ID4 have slipped behind Tesla, Volvo and MG in Europe's EV race.
In addition, Volvo's XC60 was Europe's No. 1-selling plug-in hybrid in the first six months of the year.
Globally, 45 percent of Volvo's car sales were plug-in hybrids or full-electric cars.
The depth of its lineup has the automaker on track to set a global sales record for the second consecutive year in 2024.
Volvo's mix of electrified models is something some EV-only companies wish they had now. Some companies, such as Volvo electric-only sister brands Zeekr and Smart have signaled that they would be willing to add plug-in hybrids to their lineups in China.
