Sweden, Stockholm
Heads are scratching in Europe over the apparent decision by the Volvo
Car Company to discontinue their bi-fuel compressed natural gas (CNG)
models from late next year. Though the company does not
appear to be making public statements on the matter, it is believed
they have advised dealerships in Sweden that they will not be supplying
their popular V70 and S60 models beyond 2007. The move comes despite a
reported three-fold increase in sales of the models for the year to
date this year over last year in Sweden alone.
Peter Boisen, Chairman of the European Natural Gas Vehicles Association
(ENGVA) and retired Volvo executive responsible for introducing the
current generation of Volvo bi-fuel cars, expressed his disappointment
at the decision saying that prospective buyers of the vehicles would
now likely switch to other CNG powered models rather than opting for an
alternative Volvo model.
Boisen says the decision is also a major blow for other stakeholders in
Sweden and other parts of Europe who have relied on the availability of
the Volvo bi-fuel models for their programs. “A large number of Swedish
actors have responded to demands from the car industry, and Volvo in
particular, and have made very large investments both into public
refuelling sites able to service a rapidly growing fleet of NGVs, and
into local municipal production of biomethane for use in all types of
vehicles, but where the bulk of the demand eventually would come from
the passenger cars. A significant number of already built public
Swedish gas refuelling stations are actually located adjacent to Volvo
dealerships.”
“Already today more than 50 % of all methane used as a vehicle fuel in
Sweden consists of biomethane. Total biomethane investments so far are
in the order of 2-3 billion Swedish Crowns, or some 2-300 million
Euros.The profitability of these investments now risks being
substantially eroded, at least in the short term, as a consequence of
the Volvo decision.”
The door appears to remain open for Volvo to either reverse its
decision will continue production of the bi-fuel models at a later
date, with the company reportedly pledging to “continue to support
development work”.
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