What Volvo’s Announcement Means to Us

Recently, Volvo made a stunning announcement: it has committed to selling only battery-powered EVs by 2030. Not just in Europe, mind you. Everywhere. The news comes on the heels of recent automaker reports showing a surge in worldwide EV sales and the official unveiling of Volvo’s second BEV this past Tuesday – the C40 Recharge crossover coupe. (The XC40 introduced in 2018 was the first.) See more details in the article here: https://www.newsmax.com/Finance/streettalk/volvo-electric-vehicles-ev-online/2021/03/02/id/1012158/

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2018 Volvo XC40
Photo Courtesy of Vauxford

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Why are we so excited by this? After all, Volvo’s just one manufacturer, right? Well, for several reasons. First, Volvo has been an innovator in the automotive space since it introduced the three-point seatbelt in 1959, and more recently blind spot warning, pedestrian detection and rollover protection systems that have been appropriated by rivals. It’s therefore likely that other manufacturers of ICE vehicles will follow suit as EV demand continues to drive supply. (And profits.) Of course, this means more charging installations will be required, particularly in places like schools, parks, restaurants, daycares and other family-centered locations that play to Volvo’s customer base.

In addition, Volvo notes that the C40 Recharge will sell only online, while the company’s head of commercial operations said he expects half of all vehicle sales to be online by 2025 in furtherance of their progressive agenda. This affords other forward-thinking companies the opportunity to create complementary web-based services to help Volvo in its pursuits. For instance, the new EVCS subscription plan could be coupled with online vehicle sales as a discounted add-on.

All of this signals a larger trend in the growing embrace of EVs by the general public – one that Volvo executives are confident enough to get behind with large sums of investment dollars. In fact, the company recently announced it would sink approximately 5% of annual revenues into EV R&D, an amount equaled to about $1.5 billion USD. One can imagine that the amounts spent on marketing and advertising will likewise be ambitious. As both awareness and vehicle options grow, so will sales.

Such marketplace expansion reminds us of Wright’s Law, which essentially states that the cumulative doubling of a technological innovation will result in increased production volume that reduces costs. (For those not familiar with this axiom, read more about it here: https://ark-invest.com/articles/analyst-research/wrights-law-2/) EV technology is no exception. And the fact that new EV sales topped 2.2 million in 2019, according to the IEA, as EV manufacturing costs saw a 28% drop is no coincidence.

Riffing off the Volvo announcement then, a potential 20-fold increase in the number of Volvo EVs on the road is going to significantly reduce the overall cost of subsequent models, making them even more accessible to lower income drivers and thereby further increasing overall EV adoption. Preparedness will be key. A big new wave of EVs will require far more charging sites and will increase the appetite for government incentives. As we see the sector scale, the lower price of EVs themselves will be coupled with other cost reductions resulting from more abundant charging stations, V2G technology and various dynamic charging innovations.

Volvo competitors eager to “keep up with the Joneses” have already started introducing new EV models, from the Hyundai Kona EV and Mustang Mach-E to the Audi Q4 e-Tron and BMW iX3, demonstrating that the “EV-olution” is already underway. The question is who will create the necessary support structure. EVCS is already taking the lead on generating modernized charging infrastructure throughout California, with other states soon to follow; our goal is to make sure the country is ready for the anticipated deluge of BEVs that will be hitting the road in the next decade and beyond.

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6 Reasons Why America Needs EVCS

EVCS has come a long way over a short time. In less than three years, we’ve taken a vision by company co-founders Gustavo Occhiuzzo and Ian Vishnevsky – one that incentivizes responsible mobility through increased access to charging infrastructure – and built upon it. We’ve partnered with state and local DOTs, developed advanced management software, pioneered affordable subscription charging plans, streamlined project installation processes, and reduced financial downsides while maximizing upsides for site owners, just to name a few.

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The Biden Administration and fellow Democrats in Congress continue to lead the green energy charge, which is creating resounding benefits for the EV industry as a whole. The latest is the aptly named Growing Renewable Energy and Efficiency Now, or GREEN, Act (you gotta love those clever acronyms!) sponsored by Representative Mike Thompson (D-CA-5). Earlier this month, the House Ways and Means Committee introduced the bill as a way to advance an agenda centered on achieving greater levels of sustainability, and we were pleased to see several provisions included that would further encourage EV adoption.

Installation of the Month (March 2021): The Elysian

EVCS continues to put charging stations in the ground at a record-setting pace, further proving that the notion of responsible mobility is gaining momentum with SoCal motorists. We’re incredibly proud of the work we’ve been able to do over the past couple years, which has simultaneously benefitted countless individuals (with cheaper modes of transport), businesses (with new revenue models), and the environment (with cleaner air quality). Moreover, many of our newer sites are residential buildings, making EV ownership more of a practical reality for tens of thousands of Californians who have otherwise been apprehensive about cutting the cord with ICE vehicles.

Installation of the Month (February 2021): Hollywood & Highland

In the movie Spider-man, Uncle Ben tells Peter Parker, “With great power comes great responsibility.” The phrase, which came to be known as the “Peter Parker Principle,” is just as true today as it was 20 years ago when the movie first premiered. And just as Peter took seriously his newfound powers, we take seriously our responsibility to facilitate broader access to vehicle electrification options – quite literally the “great power” here is the electricity that keeps EVs moving. We also understand the power of movies and television to convey the importance of electric mobility, be it through information, entertainment or influence marketing. As such, Hollywood has become a tremendous partner in advancing the EVCS mission.

Installation of the Month (January 2021): Barlow Respiratory Hospital

While 2021 brings hope and promise for greater widespread adoption of electric mobility, a quick glance at our portfolio reminds us of all the headway we’ve already made toward that end. Last year, we seized on positive customer sentiment and abundant fiscal opportunities in the green energy space, allowing us to become one of the top installers of EV charging infrastructure in the State of California (with 500+ installations completed and counting). As such, we thought it might be worthwhile to share some of these installations with you – a new success story each month – so that you can see firsthand the favorable strides we’re making toward a carbon-neutral future.