Volvo cashes in on hybrid hype with updated XC90 crossover

GOTHENBURG, Sweden — Volvo has updated the gasoline-powered XC90 workhorse crossover and its hybrid variants for the road to an electric future.

The freshened three-row flagship, revealed Sept. 4 at an event here, arrives early next year with improved suspension and styling cues from the battery-powered EX90, which is based on a different platform.

The 2025 XC90, which starts at $59,745 with shipping, lands at a crucial time for the Swedish brand.

U.S. sales of Volvo's first-gen electric models cratered 74 percent to 1,981 in the first half of the year. In the same period, registrations of hybrid and plug-in hybrid vehicles industrywide surged 36 percent to 866,097, according to S&P Global Mobility.

"Since people are gravitating toward plug-in hybrids instead of electric cars, we'd be wiped out without the XC90," Kevin Flanagan, chairman of the Volvo Retail Advisory Board, told Automotive News.

Despite being on the market for nearly a decade, the second-generation XC90 accounted for 30 percent of Volvo's first-half sales, or 18,191 vehicles. The XC90 was the second-bestseller in the premium large crossover segment in the first half, trailing the Lexus TX by about 3,000.

"The freshen keeps the XC90 competitive feature-wise," said Flanagan, president of Smythe Volvo Cars in Summit, N.J. "Where they price it will determine how well it sells."

The XC90's design aligns with that of the electric EX90, which arrives in the fourth quarter.

The gasoline-powered XC90 gets a crosshatch grille design, a new iteration of Volvo's signature Thor's Hammer headlights, vertically oriented front air intakes and darkened taillights.

The makeover on the inside brings updated materials, a reconfigured center console and redesigned air vents. Volvo has quieted the cabin with laminated windows and acoustic foam in the A- and B-pillars.

The XC90 dashboard is anchored by an upsized 11.2-inch display that runs Google's Android-powered infotainment system. Volvo said the display is crisper thanks to a 21 percent boost in pixel density.

Ivan Drury, director of insights at Edmunds, said the XC90's styling "resonates with a customer base that appreciates subtle versus superfluous."

Drury said shared design elements between the gasoline and electric 90 series crossovers should bring costs down by having more commonality within the lineup.

The updated XC90 retains the four-cylinder mild-hybrid and plug-in hybrid powerplants. The 455-hp plug-in hybrid delivers 33 miles of zero-emission driving on a single charge.

Volvo said the standard suspension is tweaked for improved driving control, ride comfort and traction when towing.

It's unclear whether the XC90 will get another redesign.

Production of the XC90 is expected to end in May that year, according to AutoForecast Solutions. Volvo has said there will not be a third generation with a combustion engine or plug-in hybrid powertrain, but those plans could change as demand for hybrids surges.

"Our plug-in hybrids and mild hybrids remain ... popular with our customers," Volvo CEO Jim Rowan said on an investor webcast in July. "We will continue to invest in this lineup."

Volvo retailers said they expect to keep selling gasoline power-assisted hybrids beyond the turn of the decade.

Volvo could tap Geely Group platforms to expand its plug-in hybrid range and also is considering updating its Scalable Product Architecture platform, known as SPA1, which underpins the XC90 and XC60 crossovers.

"If you redid the interior and exterior of any SPA1 car, you could ride that horse for more than a decade," a source with knowledge of the company's plans said in July. "It has a great suspension and chassis; you just need to change the top hat."