Volvo juices EV push with C40 Recharge

With its newest model, Volvo is doubling down on a sweet spot — luxury compact crossovers.

The battery-powered C40 Recharge, which arrives in the second half of the year, is a sporty-looking version of Volvo's popular XC40, whose U.S. sales soared 35 percent last year.

The C40 is Volvo's second electric vehicle, but the first designed to be an EV from the ground up. It also introduces an online-only sales strategy Volvo plans for its expanding EV portfolio.

The new crossover, along with the XC40 Recharge P8 launched last year, signals Volvo's ambitions to become an EV-only brand by 2030.

The C40's sporty styling delivers the utility of a crossover — easy entry and exit, higher driver position, good visibility — without the "conventional" body style, Volvo Cars CEO Hakan Samuelsson told Automotive News Tuesday.

"It could be a very interesting alternative if you want to have the advantage of an SUV, but maybe don't need that really big luggage compartment," Samuelsson said." I don't buy a refrigerator every day, but it's big enough for the golf clubs."

The dual-motor C40 is developed on Volvo's Compact Modular Architecture platform. The diminutive crossover is powered by a 78-kilowatt-hour battery that delivers an EPA-estimated 210 miles on a full charge.

The battery can be fast charged to 80 percent in about 40 minutes, Volvo said.

The Belgium-built C40 is the first Volvo designed without a conventional grille and introduces a new front fascia design that includes headlights with pixel technology.

Volvo Chief Technology Officer Henrik Green said the headlights operate like a movie projector.

"They are not just one single light source, you can actually dim specific pixels," Green said. "That means in oncoming traffic you can automatically dim the lights to avoid blinding other drivers."

The rear of the C40 features a reworked taillight design to go with the lower roofline. The C40 is the first Volvo model to be leather-free.

While the C40 shares a platform with the XC40 Recharge, the two vehicles are targeted at different markets, Volvo Retail Advisory Board Chairman Ernie Norcross told Automotive News.

The C40 is billed as a conquest vehicle aimed at millennials. It targets the "consumer who wants a sedan feel but also wants utility," Norcross said.

Green described the C40 as a "me" car.

"It still captures a lot of the practicality from the XC40 but it's more of an individualistic car than a practical family car," he said.

But, the appetite for a 200-mile compact EV in the U.S. is limited, likely making the C40 a niche model here. Volvo anticipates selling about 8,000 a year, dealers were told last year.

Volvo is probably aiming for the China market, which is more price-sensitive and willing to adopt shorter-range EVs, Guidehouse Insights analyst Sam Abuelsamid said.

But with homologation costs for an EV being "significantly less" than for an internal combustion engine vehicle, Volvo likely sees the U.S. as providing incremental volume, Abuelsamid said.

The C40 will be sold online only for a fixed, no-haggle price, which will include service, roadside assistance and insurance, Volvo said.

"The future of Volvo Cars is defined by three pillars: electric, online and growth," Sales chief Lex Kerssemakers said in a statement. "We want to offer our customers peace of mind and a care-free way of having a Volvo, by taking away complexity while getting and driving the car. Simplification and convenience are key to everything we do."

Volvo retailers are cautiously optimistic about the proposed retail strategy, Norcross said.

"Dealers understand consumers are going digital," he said. "We want to control the consumer experience from the beginning."