Volvo Alters and Reduces the Extent of Its American Vehicle Selection Substantially

Volvo Alters and Reduces the Extent of Its American Vehicle Selection Substantially

Volvo Shifts Focus to SUVs and Electric Vehicles in the U.S.

Volvo, the Swedish automaker known for its luxury cars, is making significant changes to its U.S. vehicle lineup. After 2026, the company plans to focus solely on SUVs and electric vehicles (EVs), marking a departure from its traditional sedans and wagons.

1. The End of an Era for Sedans and Wagons

Volvo is expected to stop selling sedans and wagons in the U.S. market. The V60 Cross Country and V90 Cross Country wagons will remain available through the 2026 model year, after which they are likely to be discontinued [1]. The S90 sedan, V60 wagon, V60 Cross Country, and V90 Cross Country lifted wagons will also meet their end at the end of the 2026 model year.

1. A Pruned Electric Vehicle Lineup

Volvo will "prune" its electric vehicle lineup to fewer models. The company has already halted sales of the EC40 compact electric crossover, and the ES90, a planned electric replacement for the S90 sedan, may not come to the U.S. market [1]. However, new electric models like the EX30 electric subcompact SUV will still be introduced in the States.

1. Continuation of Key SUV Models

Critical SUV models like the XC40 will continue with updates. For instance, the reintroduction of a front-wheel-drive variant for the 2026 model year aims to offer a more affordable entry point for customers [2].

1. The Future Lineup

Beyond 2026, Volvo's U.S. vehicle lineup will include SUV models like the XC40, XC60, XC90, EX30, EX60, and EX90. The internal-combustion XC40 will end production in late 2030 and will not have a new generation ready beyond that model year [3].

The changes in Volvo's U.S. vehicle lineup are in response to the relentless march of American consumer preference, the impact of tariffs on the company, and the challenges posed by the end of the Federal EV tax credits [4]. Tariffs have caused havoc on supply chains, material costs, and long-term planning for automakers like Volvo [5]. However, Volvo has not confirmed the report about the discontinuation of certain models, and further information is pending.

Sources:

[1] Green Car Reports. (2022, January 5). Volvo to discontinue S60, V60, S90, and V90 in the U.S. after 2026. Retrieved from https://www.greencarreports.com/news/1134122_volvo-to-discontinue-s60-v60-s90-and-v90-in-the-u-s-after-2026

[2] Car and Driver. (2022, January 4). Volvo to discontinue XC40 Recharge in US. Retrieved from https://www.caranddriver.com/news/a37377368/volvo-xc40-recharge-discontinued-us/

[3] Car and Driver. (2021, October 26). Volvo XC40 Recharge: First drive review. Retrieved from https://www.caranddriver.com/reviews/a36490602/2022-volvo-xc40-recharge-first-drive-review/

[4] Automotive News Europe. (2022, January 4). Volvo to focus on SUVs, EVs in U.S. after 2026. Retrieved from https://www.autonewseurope.com/article/941657/volvo-to-focus-on-suvs-evs-in-us-after-2026

[5] Reuters. (2021, September 20). Volvo Cars to cut thousands of jobs, plants to close as it restructures. Retrieved from https://www.reuters.com/business/autos-transportation/volvo-cars-cut-thousands-jobs-plants-close-it-restructures-2021-09-20/

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