Feb 9, 2023
Volvo Steers Clear of Ford and Tesla’s Electric-Car Price War
(Bloomberg) -- Volvo Car AB said it won’t follow Tesla Inc. and Ford Motor Co. in lowering prices for its electric vehicles anytime soon.
The carmaker is seeing robust demand for its fully battery-powered models, Chief Financial Officer Johan Ekdahl said in an interview Thursday.
“We feel comfortable in our pricing strategy and will not engage in price wars,” Ekdahl said.
Ford last month slashed the price of its electric Mustang Mach-E by an average of $4,500 in response to earlier cuts from Tesla, the biggest producer of EVs. Analysts have said they expect more discounting across the industry as additional EV models come to market and manufacturers overcome supply chain issues that have curtailed production.
Read more: Tesla Is On Both Offense and Defense in Its First-Ever Price War
Only if prices for raw materials were to normalize would the carmaker controlled by China’s Zhejiang Geely Holding Group Co. consider adjusting prices, Chief Executive Officer Jim Rowan said in the same interview. “It’s not driven by demand,” he said.
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