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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.

Volvo EX30 U.S. arrival delayed until at least next year

Despite an aggressive campaign ongoing for more than a year to market Volvo’s compact all-electric SUV in the United States, the Swedish-based company said today that it will delay introduction of the EX30 until next year. Russell Datz, a Volvo spokesman, said in an email that the on-sale date of the EX30 is “due to changes in the global automotive landscape.” Datz also attributed the delay to a “ramp up of production at our plant in Ghent, Belgium, with a 2025 target delivery date to be announced.Â’Â’ Volvo though its own channels began taking pre-orders for the 2025 EX30 after it was introduced formally just year ago; the anticipated U.S. price was announced at that time as starting at $36,145, including an $1,195 destination charge Datz added that Volvo “will offer customers with existing preorders several options to drive a new Volvo until their EX30 arrives.Â’Â’ No specifics about that, so stay tuned. “Importantly, we remain committed to bringing EX30 to the US and are working hard to get it into customer hands,” he said. It “remains a cornerstone of Volvo CarsÂ’ ongoing strategic transformation and reflects our ambition to build cars where we sell them as much as possible.” The EX30 is now sold in European markets. During a conference call with dealers today, Volvo executives suggested that the move to shift assembly to Belgium and away from China was an effect of the “geopolitical” situation. Reading between the lines, one might assume that recent moves by the Biden administration to impose high tariffs on cars imported here from China mightÂ’ve motivated the shift. Deliveries of the EX30 to the States was first expected earlier this year. Volvo said it would be offered with two powertrain options, both of which rely on a 69-kilowatt-hour cobalt-lithium-manganese-nickel composite battery, 64 kWh of which is usable. The base model, called Single Motor Extended Range, will have a rear-wheel-drive layout and produce 268 horsepower and 253 pound-feet of torque. Volvo expects this version to have a range of 275 miles on the U.S. EPA test cycle.

2015 Volvo XC90 proves Sweden's auto industry is alive and well [w/video]

The most important new Volvo in quite some time has made its first auto show appearance, with the second-generation XC90 debuting at the 2014 Paris Motor Show.
As we discussed in both our original post and Deep Dive feature, the new XC90 remains a three-row crossover for 2015, although it ditches the first-gen model's top-end, turbocharged six-cylinder in favor of a single twin-charged, 2.0-liter, four-cylinder engine. By pairing that with a plug-in-electric powertrain, the king of the XC90 range, the T8 TwinEngine, will offer up 400 horsepower. So yeah, performance should be brisk.
Also appearing on 2015 XC90 will be an entirely new, Apple CarPlay-compatible infotainment system with a big, vertical touchscreen display at its heart. Based on the videos we've seen, the new system looks responsive, feature-laden and quite attractive.