FYI: Amid fierce competition from Tesla, General Motors, and Hyundai-Kia, Volvo aims to revitalize its U.S. market presence with a refreshed XC90 and possibly some surprises.
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Volvo Gears Up for Substantially Refreshed XC90 Unveil with Potential Surprises
Volvo Cars has announced the upcoming reveal of a “substantially refreshed” XC90 on September 4, signaling a strategic pivot as the automaker faces uneven electric vehicle (EV) demand and rising hybrid sales in the U.S. market.
### Volvo’s Strategic Overhaul: A Response to Market Dynamics
Volvo finds itself navigating a challenging landscape, with heavy competition from Tesla and growing pressure from General Motors and Hyundai-Kia. While Volvo’s EV sales have lagged, its lineup of hybrids and plug-in hybrid electric vehicles (PHEVs) continues to perform robustly, offering a glimmer of hope for the brand.
The teaser for the refreshed XC90, though lacking in visible details, has sparked curiosity. It features an overhead shot of two vehicles parked nose-to-nose: the all-electric three-row EX90 and what appears to be the new version of the XC90. Our team is currently test-driving the EX90 and will share an in-depth review and insights soon.
### The EX30 Hatchback Delay: A Setback with a Silver Lining
Originally slated for production at the Geely Group’s factory in China, the eagerly awaited EX30 hatchback has now been delayed to 2025 for the U.S. market due to punitive tariffs on Chinese-made cars. To navigate this, Volvo plans to manufacture the EX30 at its facility in Ghent, Belgium. Despite the delay, the EX30 has already made a significant impact in Europe, ranking as the third best-selling EV on the continent in the first half of 2024, trailing only behind the Tesla Model Y and Model 3.
### Boosting Sales Amid Slumping U.S. Numbers
With its global plug-in sales skyrocketing by nearly 45% in the first half of the year, Volvo is likely to leverage the refreshed XC90 to cater to the growing demand for hybrids and simultaneously boost its overall U.S. sales, which have plummeted by 28.1% in H1 compared to the same period last year.
Volvo currently offers two fully electric models in the U.S., the C40 Recharge and the XC40 Recharge. However, these have struggled to gain traction, with PHEVs outselling their all-electric counterparts by a ratio of nine to one in the second quarter of this year. The XC90, XC60, S90, S60, and V60 all have plug-in hybrid versions that are outpacing their EV-only siblings.
### What Will the Refreshed XC90 Bring?
The big question remains: What new features and innovations will the “substantially refreshed” XC90 introduce? Volvo hinted at one or two surprises during the reveal, adding another layer of intrigue.
### In Conclusion
Volvo’s upcoming announcement is emblematic of its broader strategy to balance hybrid and EV offerings amid changing market dynamics. The refreshed XC90 is more than just a new model; it’s a critical component of Volvo’s plan to regain market share in the U.S. while continuing to capitalize on its success in hybrid and PHEV sales.
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William Kouch, Editor of Automotive.fyi
