Volvo propels toward zero-emission future amid trade, demand headwinds

Volvo Cars had planned to double its U.S. battery-powered vehicle lineup this year with a pair of crossovers — the full-size EX90 flagship and the diminutive, budget-priced EX30.

But the geopolitical climate has complicated those plans.

In late June, Volvo said it would delay the U.S. launch of the EX30 by more than a year because of increased tariffs on vehicles made in China. The Biden administration, seeking to prevent electric vehicles from China from flooding the U.S. market, boosted import tariffs to 102.5 percent this year from 27.5 percent.

The EX30 currently is built in Zhangjiakou, China. In the second half of 2025, Volvo will expand production to a factory in Ghent, Belgium, to supply the U.S. and Europe.

Meanwhile, the automaker is pruning its sedan and wagon lineup.

In June, Volvo ended U.S. production of its entry-priced S60 compact sedan. The S60 was Volvo's first and, until recently, only U.S.-made vehicle. Dwindling sedan demand here shortened the S60's shelf life. Volvo sold just 10,357 last year. A battery-powered replacement for the S60 goes into production in 2025 in Daqing, China, but that vehicle is not expected to come to the U.S.

It is anticipated that the automaker will ditch the V90 Cross Country wagon after production of the current generation ends next year.

Volvo has vowed to go EV-only after 2030. But market conditions in the U.S. and elsewhere could change that strategy. U.S. retailers said they expect to sell hybrid sedans, wagons and crossovers well beyond the turn of the decade.

The automaker seeks to tap Geely platforms to expand its plug-in hybrid electric vehicle range. And Volvo is considering updating its SPA1 platform, which supports mild-hybrid and PHEV variants of the XC90 and XC60 crossover moneymakers.

On a quarterly investor webcast in July, Volvo CEO Jim Rowan said it will "take time to bridge different parts of the world for full electrification." Hybrids, he said, "form a solid bridge for our customers that are not ready to move to full electrification."

"Our plug-in hybrids and mild hybrids remain very strong and popular with our customers," Rowan said, "and we will continue to invest in this lineup."

EX90: Deliveries of the new seven-seat large premium crossover begin late in 2024 — about a year behind schedule. The EX90 debuts the all-electric SPA2 platform and is available in a twin-motor, all-wheel-drive version. A 111-kilowatt-hour battery delivers 510 hp and an EPA-estimated range of up to 308 miles.

Volvo said the crossover features an "invisible shield of safety" that can help reduce accidents that cause serious injuries or death by up to one-fifth. Eight cameras, five radars, 12 ultrasonic sensors and lidar are connected to the car's main computers.

But several safety and entertainment features are not available at launch. For instance, lidar won't be fully activated until next year, and bidirectional charging functionality will come later.

The EX90 should see a freshen in 2028.

EX60: The midsize electric crossover arrives in the second half of 2026. The wagon-like EX60 rides on Volvo's Global Product Architecture platform and debuts a new grille design.

Production begins in Torslanda, Sweden, in February 2026.

XC40 Recharge: For the 2025 model year, the battery-powered compact crossover gets new EX40 badging. A software-based performance upgrade on the twin-motor variant delivers an extra 25 kilowatts of power for faster acceleration. The 2025 model arrives in U.S. stores by early next year.

According to AutoForecast Solutions, production of the next generation is expected to begin in late 2026 with a U.S. arrival the following year.

C40: The coupe-style crossover should be redesigned in 2027, but it's unclear if it will continue in the U.S. The C40 received a rear-wheel-drive model and a revised all-wheel-drive performance model last year with extended range and faster charging.

For 2025, the C40 gets new EC40 badging and a software-based performance upgrade on the twin-motor variant that delivers an extra 25 kW of power for faster acceleration. It will arrive in U.S. stores by early next year.

EX30: The delayed compact crossover will be delivered in the second half of next year.

The EX30 rides on the Sustainable Experience Architecture platform, which underpins vehicles from other Geely Group brands. It's Volvo's smallest crossover, with a 104.3-inch wheelbase. The design allows for a smaller, less expensive battery without compromising driving range. A low hood, air curtains up front and a roof drop at the rear reduce drag and boost energy efficiency. The EX30, available in single- and dual-motor variants, should deliver 250 miles on a single charge.

In the second half of 2025, Volvo could bring a rugged EX30 Cross Country variant, tricked out with skid plates, black panels on the front bumper and trunk lid, and a small, hood-mounted Swedish flag.

Large electric sedan: The large electric sedan could come to the U.S. by 2027.

A dealer described the model as having a fastback design and a "larger presence" than the gasoline-powered S90. The EV will be offered in single- and dual-motor variants and should deliver 300 to 400 miles on a single charge.

XC90: For the 2025 model year, the B5 mild-hybrid variant of the large crossover gets an 8.3 percent fuel economy boost.

The XC90 will be freshened in the first quarter of 2025 with engine upgrades, a new grille design, and front and rear fascia tweaks. The interior gets a larger infotainment display and instrument cluster.

Production of the XC90 ends in May 2030. Volvo has said there will not be a third generation with a combustion engine or plug-in hybrid powertrain, but those plans could change.

XC60: For the 2025 model year, the B5 mild-hybrid variant gets a 4 percent improvement in fuel economy. The XC60 should receive a heavy freshen late next year, similar to the XC90. Production ends in April 2030. There are no plans for a new generation.

XC40: In 2024, the compact crossover ditched its front-wheel-drive variant and added exterior colors. A turbocharged 2.0-liter four-cylinder engine assisted by a 48-volt hybrid system pumps out 247 hp. Volvo could bring a PHEV variant of the EX40 offered in Europe to the U.S. XC40 production ends in late 2030. A next generation is unlikely.

S90: The large sedan should be redesigned in 2029, but its long-term prospects in the U.S. are unclear.

V60: The PHEV wagon, introduced in the U.S. in 2020, combines a supercharged and turbocharged gasoline engine with an electric motor to produce 455 hp.

V60 Cross Country: Volvo freshened the raised wagon last year. It is available with a turbocharged 2.0-liter four-cylinder engine that delivers 250 hp. A crossover-like electric replacement of the V60 Cross Country using the EV60 name could arrive in 2027.