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Volvo recommits to Sweden with development of next-gen platform and engines

Taking into account the facts that Volvo is now owned by China's Geely and how poorly the European automotive market has been recently, we would have definitely understood if Volvo moved production of its products out of its home market. And yet, the automaker has confirmed that it will be investing billions of dollars into new platforms and engines that will be made in Sweden. On a global scale, Volvo is making roughly $11 billion of investments, and close to half of that is being earmarked for Sweden for plant expansion and upgrades.
The new Scalable Product Architecture (SPA) platform will be the used as the basis for most future Volvo products starting with the next-generation XC90 that will be debuting at the end of 2014. SPA will be used to make up two-thirds of Volvo's sales, and gives Volvo a quicker and easier break from Ford-derived platforms. As for the Volvo Engine Architecture (VEA) family of engines, there are really no details about this mill except that it will be a four-cylinder that is more fuel efficient than current engines.
Scroll down for the Volvo press release.

Volvo teases refreshed XC90, EX90 updates and 'a surprise or two'

Volvo will show the world the updated XC90 crossover on what the company is calling "90/90" day, which to the rest of us is simply September 4th. The day will also "mark a big moment in the launch of the EX90," which accounts for the second "90." But what's far more interesting was the cryptic teaser Volvo tacked onto the end of its announcement, suggesting that "there might be a surprise or two …" in store for us too. Well, then.  The announcement was accompanied by an equally cryptic teaser image that appears to depict the hoods of the EX90 (top/right) and XC90 (bottom/left). There's not much to see here apart from the differentiating hood creases and some details in the headlights. From what we can make out, the updated XC90 will have a different take on the "Thor's Hammer" LED signature. Anything else is merely speculation. While Volvo hasn't officially put a sunset date on the XC90, we expect this will be the last major update before it is put out to pasture in favor of its all-electric sibling. The writing has been on the wall since Volvo originally unveiled the EX90 in 2022.  As for Volvo's surprises? We're not really sure what to expect. With the EX30 launch dragging on much longer than expected, Volvo is unlikely to be in a position to announce any major new product introductions for the U.S. market. We can't rule out the possibility of some Polestar Engineered variants of existing models; Volvo has already demonstrated a willingness to offer them on crossovers, so why stop now? In any event, we've only about a week to wait. Plus, you'll be able to watch the whole thing live on Volvo's 90/90 Day microsite. 

Trade war tactics: How Volvo will land a cheap Chinese EV on U.S. shores

A made-in-China electric vehicle will hit U.S. dealers this summer offering power and efficiency similar to the Tesla Model Y, the world's best-selling EV, but for about $8,000 less. The EX30 from Volvo Cars, the Swedish luxury brand owned by China's Geely, foreshadows the fierce competitive threat U.S. automakers could face from Chinese EV manufacturers that have surged far ahead of global rivals, especially on affordability. The $35,000 window sticker of Volvo's compact SUV hits a sweet spot in the U.S. market, where most buyers cannot afford most EVs. The competitive price reflects an unusual combination of Geely's China-specific cost advantages and Volvo's ability to skirt U.S. tariffs on Chinese cars because it also has U.S. manufacturing operations, according to interviews with four sources familiar with Volvo and Geely strategy and several U.S. trade policy experts. Chinese EV makers can undercut global competitors largely because of the nation's domination of battery minerals mining and refining, as well as its long-standing commitment to EV development, including heavy government subsidies. In addition, Geely has slashed manufacturing costs by merging supply chains and sharing platforms and parts with Volvo and other Geely brands, according to two senior Geely managers, who spoke on condition of anonymity because they are not authorized to speak publicly. Despite its aggressive price, Volvo is targeting hefty profit margins on the EX30 of between 15% and 20% globally, said a third Geely source. China's EV dominance will be on display this week at the nation's premier auto show in Beijing. In the China market, the world's largest, dozens of domestic EV brands are fighting it out in a price war while foreign automakers have steadily lost market share. The intense competition has driven China's biggest EV makers, led by BYD, to accelerate exporting of EVs that can capture higher prices and profits in less competitive overseas markets. The EX30 will be among only a handful of China-made cars sold in the United States, none of them from Chinese brands. Vehicles from China currently face a 27.5% tariff and increasingly strident calls for higher trade barriers from U.S. automakers and their political allies. But Volvo is eligible for tariff refunds under a law that awards them to firms with U.S. manufacturing operations — such as VolvoÂ’s South Carolina plant — that also export similar products, according to U.S.