2004 Volvo V70 R Sports Wagon on 2040-cars

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Volvo might join the tide of automakers turning to hybrids and PHEVs

Volvo had been the clearest and most direct of all automakers about switching to a purely electric lineup.  Less than a year after getting the XC40 Recharge to market, on March 2, 2021, the company wrote that it "intends to only sell fully electric cars and phase out any car in its global portfolio with an internal combustion engine, including hybrids." Two years later, with the C40 on dealer lots and the EX90 and EX30 in the pipeline, CFO Bjorn Annwall removed the wiggle room of "intends" by pledging Volvo won't "sell a single car" that isn't purely electric after after 2030, emphasizing the target to Automotive News with, "There's no ifs, no buts." Problem is, there are always ifs and buts, and Volvo might be the next automaker needing a tactical retreat to deal with them. After speaking to members of Volvo's U.S. dealer body, Automotive News reports a softening of the 2030 target. The most Volvo has said publicly came from CEO Jim Rowan, who told analysts during a recent investor webcast that because the EV transformation is going to take time to scale, hybrid powertrains could "form a solid bridge for our customers that are not ready to move to full electrification." According to AN, an anonymous insider said plug-in hybrids could take the lead for the next 10 years as global governments and global markets align on electric vehicles. If this turns out to be the case, Volvo would join a strengthening trend as automakers rush to develop hybrids and PHEVs to launch in the next three years.   Volvo would also be well positioned for the turn, considering buyer sentiment to the hybrids and PHEVs it's sold for many years now. The SPA1 platform supporting every Volvo with an internal combustion engine remains sound. Given development dollars and improvements in battery technology, there's no reason Volvo couldn't ride an evolution of the architecture into the next decade, and it can also take advantage of platforms and toolkits from parent company Geely. Only a year ago, Geely and Renault agreed on a joint venture to invest 7 billion euros for researching new technologies to make non-hybrid and hybrid gas engines more efficient.  This is clearly what U.S. dealers want based on their comments to AN, one retailer going so far as to say, "We will have to [stick with hybrids], or we will die."  Short term, Volvo's enduring the same pain felt by other automakers.

2025 Volvo EX90 now $3,300 more expensive thanks to materials costs

Without any fanfare, and with sharp surprise to some dealerships and reservation holders, Automotive News reports Volvo upped the price on all EX90 trims by $3,300. The automaker told the outlet that it raised prices on May 1, a month before the EX90 entered production after almost a year of delays. Volvo said it told its dealer body and reservation holders about the increase on June 26, the same day it informed reservation holders that the electric SUV would miss certain features on delivery and be programmed with workarounds for some unsolved issues like battery drainage when parked. The omissions include at least one of the lidar-centric safety systems that Volvo touted as putting the EX90 ahead of the competition when the car launched. The company told one reservation holder the software gaps would be filled in sometime in the "early ownership" phase, the only rational kind of non-answer available to automakers working through EV bugs. We couldn't find any active EX90 forum threads about the price increase, a strange absence for an anticipated vehicle with more than 10,000 preorders. In a Reddit thread from June 27, a commenter writes, "Just got my [EX90] customization email and the price has indeed increased to $79,995 + $1,295 destination fee," making it sound like being surprised by the automaker instead of being informed, such surprise matching a story another potential buyer told AN. And now a note on the EX90 configurator warns shoppers that "Ventilated Nordico is expected to be delivered towards the latter part of the estimated delivery time above." Since there are no delivery times yet, that means no ventilated seats for U.S. buyers for an unknown amount of time.  The new MSRPs figures for EX90 in base Twin Motor form after the $1,295 destination charge are:  Plus 7-seater: $81,290  Plus 6-seater: $81,790  Ultra 7-seater: $85,640  Ultra 6-seater: $86,140  Add $5,000 to these prices to for the Twin Motor Performance drivetrain. Both versions run off a 111-kWh battery from CATL. The first provides a total of 402 horsepower and 568 pound-feet of torque, and a 0-60 time of 5.7 seconds. The performance version is good for 496 horsepower and 671 pound-feet of torque, shrinking the 0-60 time to 4.7 seconds. A company spokesperson named rising materials costs as the culprit.

Here's today's round of auto plant closures in response to coronavirus

More automakers have shuttered factories, as businesses everywhere work to slow the spread of the Covid-19 coronavirus — and as the pandemic slows sales and disrupts parts supply chains. On Friday, the following closures were announced: • Volvo will close its factories in Sweden and the United States from March 26 to April 14. Volvo's U.S. facility, in Charleston, South Carolina, makes the S60 sedan. Its assembly plant in Torslanda, Sweden, turns out the XC90, SC60, and V90. Other Swedish facilities make engines and component parts. A Volvo factory in Ghent, Belgium, that builds the XC40 and V60 closed earlier this week and is expected to remain offline until April 6. Volvo's four factories in China have been reopened after a shutdown earlier this year. • Jaguar Land Rover announced that it will suspend production at its assembly plants in the UK over the coming week. The shutdown is expected to last until April 20. Elsewhere, production continues at the company's factories in India and Brazil, and JLR's joint-venture plant in China reopened at the end of February. • Bentley is closing its factory in Crewe, England, for four weeks, effective today. • Bugatti has put its atelier in Molsheim, France, on hiatus. No date was given for when assembly of its supercars might resume. • Mercedes-Benz on Monday will shut down its SUV factory in Alabama and its van assembly plant in South Carolina. Both will remain closed for a minimum of two weeks. Tesla yesterday revealed that it will suspend operations at its Fremont, California, vehicle assembly plant next week, on order from local officials there. Yesterday's factory closure announcements also included the U.S. assembly plants for Toyota (until April 6), Volkswagen (through March 29), Subaru (through March 29), and Hyundai (no time period specified). They join GM, Ford, Chrysler, Honda, Nissan, and Harley-Davidson, which earlier this week announced the suspension of production at their facilities. Plants/Manufacturing Bentley Bugatti Jaguar Land Rover Mercedes-Benz Volvo coronavirus