{"id":66334,"date":"2025-07-17T12:18:07","date_gmt":"2025-07-17T16:18:07","guid":{"rendered":"https:\/\/www.globalvillagespace.com\/tech\/volvo-plots-next-gen-xc90-plug-in-hybrid-amid-shifting-electric-vehicle-strategy\/"},"modified":"2025-07-17T12:18:07","modified_gmt":"2025-07-17T16:18:07","slug":"volvo-plots-next-gen-xc90-plug-in-hybrid-amid-shifting-electric-vehicle-strategy","status":"publish","type":"post","link":"https:\/\/www.globalvillagespace.com\/tech\/volvo-plots-next-gen-xc90-plug-in-hybrid-amid-shifting-electric-vehicle-strategy\/","title":{"rendered":"Volvo Plots Next-Gen XC90 Plug-In Hybrid Amid Shifting Electric Vehicle Strategy"},"content":{"rendered":"

Why Is Volvo Sticking With the XC90 Instead of Going Fully Electric?<\/p>\n

For years, Volvo has been one of the loudest voices in the push toward electrification, famously pledging to go all-electric by 2030. But reality, as it turns out, is a bit messier than a press release. The company\u2019s CEO recently confirmed that a third-generation XC90 is on the way, despite earlier plans to phase out combustion engines entirely. So, what\u2019s behind this pivot?<\/p>\n

The answer boils down to timing and flexibility. Volvo\u2019s original plan hinged on the success of its large electric SUV, the EX90, which was supposed to take over from the XC90. But with delays in EX90 production\u2014thanks to software hiccups and supply chain snags\u2014the current XC90 got a stay of execution. And as global EV adoption proves patchier than expected, Volvo is hedging its bets. The company recognizes that many drivers, especially in Europe, still want the security and convenience of a plug-in hybrid with real electric range. In short, Volvo\u2019s not abandoning its electric ambitions, but it\u2019s making room for a more gradual transition.<\/p>\n

What\u2019s Changing With the Next-Gen XC90? Will It Be a Plug-In Hybrid?<\/p>\n

The next XC90 is shaping up to be a very different animal. Instead of a traditional hybrid or a pure EV, Volvo is leaning toward a long-range plug-in hybrid (PHEV) setup\u2014something that\u2019s already rolling out in China with the new XC70 PHEV. That model boasts an impressive 112-mile electric-only range, a figure that blows most current PHEVs out of the water.<\/p>\n

Why does this matter? Because European emissions rules are tightening, and company car tax rates are about to get a lot tougher on plug-in hybrids with small batteries. The current XC90\u2019s battery, at just under 15kWh, simply doesn\u2019t cut it anymore. By moving to a larger battery\u2014potentially 21kWh or even 40kWh, as seen in the XC70\u2014Volvo can keep the XC90 relevant for both eco-conscious families and fleet buyers who care about running costs.<\/p>\n

How Is Volvo Navigating Global Challenges Like Tariffs and Supply Chains?<\/p>\n

Volvo\u2019s recent history has been a masterclass in corporate agility\u2014or at least, in learning to pivot quickly when things go sideways. The company took a nearly \u00a3900 million financial hit after scrapping plans to sell its China-built ES90 electric sedan in the US, thanks to steep new tariffs. Add in the EX90\u2019s software delays, and you\u2019ve got a recipe for some serious boardroom headaches.<\/p>\n

To counter these challenges, Volvo is shifting production strategies. The XC60, for example, will start rolling out of the Charleston, South Carolina plant in 2027, sidestepping US import tariffs. Meanwhile, production of the smaller EX30 electric SUV for Europe is moving from China to Belgium, and the upcoming EX60 will be built in Sweden. This multi-country approach helps Volvo dodge trade wars and stay nimble as the global car market keeps shifting underfoot.<\/p>\n

What Platform Will the New XC90 Use, and Why Does It Matter?<\/p>\n

Underneath all the talk of batteries and tariffs is a quieter revolution: platform sharing. The new XC90 is likely to ride on the same Scalable Modular Architecture (SMA) that underpins the XC70 PHEV. This platform is designed to accommodate bigger batteries and more advanced hybrid systems, which means better range and more flexibility as regulations evolve.<\/p>\n

For buyers, this translates into a car that\u2019s more future-proof. Want to drive mostly electric during the week but need the reassurance of a petrol engine for long trips? The new XC90\u2019s platform is built for exactly that kind of versatility. It\u2019s a smart move, especially as many families aren\u2019t quite ready to go all-in on electric just yet.<\/p>\n

How Does Volvo\u2019s Approach Stack Up Against Other Premium Brands?<\/p>\n

Volvo isn\u2019t alone in rethinking its electrification timeline. Many premium automakers are finding that the road to zero emissions is full of unexpected detours. What sets Volvo apart is its willingness to be transparent about these challenges. Instead of doubling down on a single strategy, the company is openly adapting\u2014whether that means extending the life of a popular hybrid, shifting factories, or tweaking battery sizes to meet new rules.<\/p>\n

Recent data from the European Automobile Manufacturers Association shows that plug-in hybrids still account for over 8% of new car sales in Europe, and that number is holding steady even as full EV growth slows in some regions. Volvo\u2019s bet on a longer-range PHEV XC90 isn\u2019t just a stopgap\u2014it\u2019s a calculated response to real-world consumer demand.<\/p>\n

What\u2019s the Upshot for Drivers Considering the XC90 or Its Rivals?<\/p>\n

If you\u2019re in the market for a family SUV, the next-gen XC90 is shaping up to be a compelling option. You\u2019ll get the flexibility of a true long-range plug-in hybrid, the latest safety tech, and a platform that\u2019s ready for whatever the next wave of regulations brings. And with Volvo\u2019s ongoing efforts to localize production, you can expect fewer supply hiccups and more stable pricing.<\/p>\n

The big takeaway? Volvo\u2019s XC90 strategy isn\u2019t about perfection\u2014it\u2019s about smarter adjustments. Start with one change this week, and you\u2019ll likely spot the difference by month\u2019s end.<\/p>\n","protected":false},"excerpt":{"rendered":"

\"Volvo<\/a><\/p>\n

\n Recently updated XC90 has been on sale since 2015<\/p><\/blockquote>\n

“We will need a new XC90,” says Volvo CEO, and a Mk3 could be based on long-range XC70 PHEV<\/p>\n

\n

Volvo will develop a third-generation XC90<\/a> SUV, the company’s CEO has said, as the phase-out of combustion-engined models takes longer than the brand originally predicted.<\/p>\n

Volvo has recently facelifted the 10-year-old XC90 after giving it a reprieve from the axe amid delays to the EX90<\/a> large electric SUV, which was originally intended as its replacement.<\/p>\n

However, CEO H\u00e5kan Samuelsson said a third-generation model is on the cards. \u201cWe will need a new XC90,\u201d he\u00a0told investors on the company\u2019s second-quarter earnings call, pointing out that the current model was first launched in 2015, but he stopped short of giving\u00a0a potential launch date for its replacement.<\/p>\n

A new XC90 is likely to be a long-range plug-in hybrid after Samuelsson indicated that the technology will make it over to Europe from China, where Volvo will start production of the new XC70 plug-in hybrid<\/a>\u00a0(below) with a claimed 112-mile electric range\u00a0in the next three months.<\/p>\n

\"\"<\/p>\n

\u201cThis is something I think European consumers will want to have,\u201d he said. \u201cPlug-in hybrids with a longer range are\u00a0a solution that probably we will need for some more years than we thought.\u201d<\/p>\n

Volvo had committed in 2021 to going all-electric by 2030\u00a0but has since backtracked due to the varying pace of EV take-up globally.<\/p>\n

The XC70 is built on a new Geely platform called SMA (Scalable Modular Architecture) and it could also underpin a new XC90.<\/p>\n

The facelifted XC90 plug-in hybrid continues with a comparatively small battery of just under 15kWh compared with either 21kWh or 40kWh for the XC70.\u00a0<\/p>\n

The XC90’s shorter-range\u00a0battery will penalise the facelifted SUV under new emissions-testing rules coming in at the end of the year that recalculate the CO2 figure for plug-in hybrids, making those with smaller batteries more expensive to tax as a company car.<\/p>\n

Volvo has been hit hard by a combination of unforeseen global factors that have exposed its lack of flexibility compared with bigger premium companies.\u00a0<\/p>\n

The Swedish firm booked a charge equivalent to almost \u00a3900 million in the second quarter this year after it halted plans to sell its new China-built ES90<\/a> electric saloon in US due to tariff hikes, along with delays to the EX90 SUV.<\/p>\n

Software problems slowed the ramp-up of the EX90 at the company\u2019s US plant in Charleston, South Carolina, by two years, CFO Fredrik Hansson said on the call. \u201cThat means lost volumes and it means increased engineering cost,\u201d he said.<\/p>\n

Volvo confirmed it will add the XC60<\/a> to the Charleston factory from the start of 2027 as it looks to fill capacity there and avoid the additional 25% tariffs US president Donald Trump has imposed on imported cars.<\/p>\n

The company now believes it has manoeuvred itself into a position where it can ride out some of the worst of the global tariffs hikes and differences in the speed of electrification take-up.<\/p>\n

Production of the Volvo EX30<\/a> small electric SUV for Europe will move\u00a0to Ghent, Belgium, in the second half of this year from China. Meanwhile, the EX60<\/a> mid-size electric SUV will start production in Sweden in 2026, finally giving Volvo a competitor in a growing segment.<\/p>\n<\/div>\n","protected":false},"author":1,"featured_media":66335,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"footnotes":""},"categories":[2,137],"tags":[],"class_list":["post-66334","post","type-post","status-publish","format-standard","has-post-thumbnail","category-featured","category-news"],"_links":{"self":[{"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/posts\/66334","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/comments?post=66334"}],"version-history":[{"count":0,"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/posts\/66334\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/media\/66335"}],"wp:attachment":[{"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/media?parent=66334"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/categories?post=66334"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.globalvillagespace.com\/tech\/wp-json\/wp\/v2\/tags?post=66334"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}