FYI: Volvo raises EX90 prices by $3,300 across all trims, surprise notifications about feature omissions add to preorder woes.
Volvo Surprises Customers with Unannounced EX90 Price Hike and Feature Omissions
In a surprising move, Volvo has quietly increased the prices of all trim levels of its much-anticipated EX90 electric SUV by $3,300. This price adjustment, which took place on May 1, 2023, a month before the vehicle went into production following a nearly year-long delay, was only communicated to dealer groups and preorderers on June 26, the same day they were informed that their vehicles would be missing certain features at delivery. This has left many preorderers and dealers stunned.
Sudden Price Increase
Despite the EX90 being pushed into production, the announcements tied to the SUV have left many scratching their heads. The new pricing model means the EX90 base price now stands significantly higher than originally anticipated. Specifically, the new MSRP for the EX90 base twin-motor variants, excluding a $1,295 delivery charge, are as follows:
- Plus 7-seater: $81,290
- Plus 6-seater: $81,790
- Ultra 7-seater: $85,640
- Ultra 6-seater: $86,140
Adding the twin-motor performance drivetrain tacks on an additional $5,000 to these prices.
Feature Omissions
Compounding the price increase, Volvo has informed its preorder customers that their vehicles would be delivered without some previously advertised features, including at least one of the lidar-centric safety systems. Such systems were originally promoted as offering the EX90 a competitive edge. Preorderers were told that these software gaps would likely be filled during the vehicle’s "early ownership" phase, presenting a rather ambiguous timeline for resolution.
Market Comparisons
The price increase now positions the EX90 less favorably against its rivals. Initially launched at $77,990, the EX90 was aimed to be competitively priced against luxury electric SUVs like the Mercedes-EQS EQE SUV, Rivian R1S, Tesla Model X, and BMW iX. With the increase, the EX90 is now more expensive than the base models of the Mercedes and Tesla offerings:
- Mercedes-EQS EQE SUV: $79,050
- Rivian R1S: starting at $77,700 with a 270-mile range
- Tesla Model X: $79,900
- BMW iX: $88,095
Customer Reactions
The reaction among customers has been mixed. Some preorderers have expressed their disappointment on forums and social media. For instance, in a recent Reddit thread, one potential buyer remarked, "Just received my (EX90) customization email and the price has indeed increased to $79,995 + $1,295 delivery." This reflects a sense of surprise and frustration among the community.
Moreover, the announcement that ventilated seats, marketed as "Ventilated Nordico," would not be available at the estimated delivery times has added to customer dismay.
Reasons Behind the Increase
According to a Volvo spokesperson, the hike in prices is attributed to rising raw material costs. This explanation sheds light on the broader challenges faced by automakers globally, especially in ramping up production of electric vehicles (EVs).
Future Outlook
Volvo’s communications indicate that no "firm orders or non-refundable deposits" were in place before the price increase on May 1, 2023. As such, all buyers, even those who reserved the EX90 upon its initial debut, must now pay the updated price. With preorder cancellations already starting to appear, it remains to be seen just how significant the impact of these recent developments will be on Volvo’s customer base.
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Lawrence Jacobs,
Editor of Automotive.fyi
