Volvo is trying to put its EV stumbles in the rearview

Volvo previously aimed to fully exit the gas car business, but its EV progress has been uneven. The EX40 has performed well, while the EX90 faced persistent software bugs that required costly hardware replacements. The EX30 rollout was disrupted by tariffs, leading to discontinuation in the US. Volvo now plans to strengthen its EV position with the next-gen EX60 compact SUV, debuting in the US and opening orders for deliveries later this summer. Pricing starts at $59,795, higher than the gas XC60 but lower than the plug-in hybrid XC60. The EX60 enters a challenging market after the elimination of the federal EV tax credit and additional policy and tariff pressures. Volvo expects its 400-mile range, 10–80% fast charging in 18 minutes, and ongoing OTA software updates to help overcome these obstacles.

"Volvo once had ambitions to fully exit the gas car business. Now it's trying to keep its tenuous foothold in the EV market. It's not an understatement to say that Volvo's EV journey has been a bumpy one. The compact EX40 has been a consistent winner, but the Swedish brand's other EVs have been plagued with problems. The EX90 was supposed to be a bold statement for the future, but persistent software bugs have forced Volvo into an expensive hardware replacement. The tiny EX30 faired no better, with tariffs upending the rollout of the brand's first mass-market affordable EV, eventually leading to its discontinuation in the US."

"But now with the EX60 compact SUV, Volvo is hoping to get its EV groove back. Volvo's top executives gathered in New York City this week to mark the new compact SUV's US debut and to celebrate the opening of orders for customer deliveries later this summer. Starting at $59,795, the next-gen EX60 will be more expensive than the regular, gas-powered XC60 crossover, which has recently become Volvo's top-selling model of all time. But it will be less expensive than the plug-in hybrid XC60, which says a lot given the popularity of hybrids these days."

"But the EX60 will arrive in what is arguably the most hostile environment for EVs since their inception, thanks to the elimination of the $7,500 federal EV tax credit, policy changes, and tariffs making vehicles of all types more expensive. As EV sales grow globally, the American market is in an obvious slump. But Volvo thinks the EX60's impressive traits - 400 miles of range, 10-80 percent fast-charging in 18 minutes, and a steady stream of OTA software updates - will be enough to beat back the headwinds."

""Is this the right time to introduce an electric car with everything you hear on the market?" Volvo CEO Håkan Samuelsson said. "I would say yes, because we think this car will not be electrified with subsidies or incentives. It will be electrified... because we can offer something""

Read at The Verge