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Volvo vows to charge subscriptions only for major updates

Volvo Cars Chief Operating Officer Bjorn Annwall   BMW veered into a public-relations mess this year when it started charging car owners monthly subscription fees to warm their behinds. Volvo Car won’t be making similar moves. “If you are to charge for software updates, it must be a step change in consumer benefit,” VolvoÂ’s Chief Operating Officer Bjorn Annwall said in an interview this month. “We will not ask people who have bought a car for 1 million kronor ($96,500) to pay another 10 kronor to get extra heat in the seat.” While BMW will no doubt have other manufacturers follow in its footsteps — Mercedes-Benz recently started asking buyers of its EQ electric vehicles to fork over $1,200 a year to unlock quicker acceleration, for example — the auto world has started to second-guess just how much money there is to be made from the rise of software within their hardware-intensive business. In a 91-page deep dive into the topic last month, analysts at UBS pegged the total addressable market at $700 billion by 2030. ThatÂ’s no pittance, but pales in comparison to the $2 trillion opportunity they anticipated previously. Annwall sees Volvo generating little additional revenue from software until mid-decade. Only if major upgrades become available — a self-driving mode, for example — would Volvo charge extra. “You donÂ’t have to hold the steering wheel — now thatÂ’s a step change in user benefit.” Annwall was speaking at the opening of VolvoÂ’s new tech hub in Stockholm, where the manufacturer builds software for selling and marketing cars online. The company, which last month unveiled a battery-powered sport utility vehicle to succeed its gasoline-era flagship, intends to cease making combustion cars by the end of the decade. ItÂ’s going to be an uphill push: EVs made up just under a fifth of the companyÂ’s shipments last month. Bloomberg spoke with Annwall about VolvoÂ’s tech efforts, the software issues that have plagued some of its competitors and the ongoing supply-chain issues holding back the industry. Here are highlights from the conversation, which have been edited for length and clarity: Large automakers including Volkswagen have had problems with their car software. Have you experienced similar obstacles? I wonÂ’t hide the fact that we have had some problems with our software in the car as well. But weÂ’ve been good at correcting them fairly quickly.

Best Large SUVs of 2024

When it comes down to large SUVs, there's more to consider than price and just how large it is. First, it comes down to what's underneath the skin. Some are built on a truck-like body-on-frame chassis — this would be the traditional, literal definition of an "SUV." Others use car-like, unibody construction, which would make them a crossover. What really matters, though, is how you use them. For most American families, a large three-row crossover is going to be your best bet. They have loads of passenger and cargo space, and deliver superior fuel economy, handling and ride quality than those big traditional SUVs. They're cheaper, too. On the other hand, those traditional large SUVs like the Chevy Tahoe and Ford Expedition are better-suited for more heavy-duty tasks like towing. Most now have bigger third rows than big crossovers, while extended-length versions like the Chevy Suburban have way more cargo capacity behind their third rows than everything but an airport shuttle. As for luxury large SUVs, they fall into those same two categories as well, with American choices mostly being truck-based. The pros and cons of choosing one over another are similar. Below, you will find our list of the best large SUVs broken down into three categories: large family crossover, large traditional SUV and large luxury SUVs, which comprise both construction types.  Best Large Family Crossovers  |  Best Large Traditional SUVs  |  Best Large Luxury SUVs Best Large Family Crossovers 2024 Honda Pilot Why it stands out: Exceptional storage and cargo space; unique second-row functionality; refined ride; versatile and capable TrailSport; advanced AWDCould be better: Subpar acceleration with lackadaisical transmission and engine response; so-so driver assistance tech Read our full 2024 Honda Pilot Review The Honda Pilot was completely redesigned for 2023. It maintains its predecessor's family-friendly packaging and overall focus, but it has injected a welcome sense of style (especially in the TrailSport pictured above) that makes it stand out much better from the big crossover crowd. The Pilot's restrained adornment and classic proportions are refreshing compared to the increasingly busy Kia Telluride, Hyundai Palisade and Subaru Ascent. Let's talk about practicality, though, which is ultimately the Pilot's best attribute.

Volvo EX30 electric crossover coming to lure younger buyers

Volvo's long-rumored entry-level electric crossover is taking shape. Positioned below the XC40 and likely called EX30, the city-friendly model will make its debut this summer, and it should play a significant role in bringing younger buyers into the firm's showrooms. While specific details remain under wraps, Volvo boss Jim Rowan pledged that the EX30 will be "very safe" and offer a "decent range" as well as a "good size." Downsizing in terms of price and size will help the Swedish company reach a wider audience. "The age demographic that we have at Volvo is a lot older than we would like; we'd like to get some more younger people into the brand," the CEO told CarSales. Letting customers buy the EX30 online will help lure younger drivers, according to Volvo's research. However, it's not forgetting about older motorists: It expects that older drivers who want a smaller car and don't regularly drive long distances will be interested in the EX30 as well. As we previously reported, the EX30 will share its Sustainable Experience Architecture (SEA) platform with the Smart #1. The connection isn't as random as it might seem: China-based Geely owns Volvo and runs Smart via a joint-venture with Mercedes-Benz. Rear-wheel drive will come standard, and buyers will have several battery sizes to choose from, though it sounds like none will be massive. Rowan expects that driving range will become less of a concern for electric-car drivers as the charging infrastructure improves in the coming years. The Volvo EX30 is scheduled to make its debut in June 2023 and go on sale shortly after. Production will take place in China, and there's no word yet on whether we'll see the EV in the United States. As it stands, the next new Volvo to reach showrooms is the range-topping EX90. Rumors suggest that an electric minivan is around the corner as well, but Volvo hasn't commented on the report or confirmed the model. Related video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.