Why Volvo Is Speeding Up Its EV Plans While Everyone Else Is Slowing Down

The all-new Volvo EX60 is just the beginning of an even bigger EV push by the Swedish automaker.

As the all-new 2027 Volvo EX60 starts rolling off the line in Sweden, the automaker was recently granted an exemption to sell connected cars in the U.S. like the EX60 that use software developed in China. It’s a big win for the brand, which, along with its Chinese parent company Geely, has had to navigate myriad issues surrounding software and manufacturing with the cars it imports to America.

So, what’s next for the premium automaker that’s a niche player on the global stage? “We need more cars,” said Volvo CEO Hakan Samuelsson. And by cars, he means electric vehicles, a pursuit that flies in the face of the industry at large that’s doubling down on hybrids with internal combustion engines and slow-walking EV plans.

“I said last time we should be all electric by 2030,” said Samuelsson. The world may not be moving that fast, but Volvo wants to be ready by the end of the decade with more models utilizing its new SPA3 architecture that underpins the EX60, an electric midsize SUV, and software-defined vehicles designed to receive over-the-air updates, allowing them to continually evolve. These are the areas where Volvo is concentrating its capital investment.

“We should be prepared to be all electric because I am totally convinced the future for a small company like Volvo is not to try to slow down development. We should try to speed up,” said Samuelsson. In fact, he thinks the industry as a whole should not slow the transformation to electrification. “We think it should be faster and we want to be faster than the others.”

The CEO recognizes that not all markets are ready for pure EVs. To bridge the gap, Volvo will develop second-generation hybrids with parent Geely, sharing the tech and the cost. They would have a Volvo-designed top hat.

Future for Volvo XC40 and EX30?

One of the oldest models in the lineup is the Volvo XC40, which has had its model year extended through late 2026 before it’s scheduled for an update. There are no plans to discontinue it, according to Samuelsson. “I will retire probably before the XC40,” he said.

The U.S. is unlikely to see a return of the EX30 small electric crossover, whose launch was delayed by software issues. When it finally arrived, it was a hard sell. The addition of tariffs and loss of tax credits made the small electric crossover more expensive than it should have been. As a result, it lost its cost advantage and profit margins. The EX30 was discontinued in the U.S. after the 2026 model year.

Volvo has a larger global portfolio than what it sells in the U.S., and it probably always will, said Samuelsson. He thinks the electric EX60 and the larger, three-row EX90 EV are more competitive here, and after a long painful process, believes the EX90 now has the quality it should have had initially. Early EX90s were plagued with software problems, which he says have been resolved. But there are still models on the road, including the 2026 EX90 in the MotorTrend long-term evaluation fleet, that are experiencing teething issues.

What About Minivans and Wagons?

Volvo presently has no plans for its EM90 luxury minivan to compete with the Mercedes VLE in the U.S. “Maybe if Mercedes is very successful, we will have a second look. For right now, I think [the EM90] is a car for China mainly,” said Samuelsson.

As for more wagons in the future, he points to the lower profile of the EX60, which some might equate with a wagon, as opposed to the Cross Country version coming next year that will be higher and look more like an SUV.

“I would not rule out getting something lower in the future,” said Samuelsson. “It could be what we need for the next generation. I think right now we’re very heavy with SUVs. I’m a bit skeptical that everyone will love SUVs 10 years from now.”

Regional Focus Is Important

Being a small company, Volvo needs to be focused on the right products for each region, said Volvo chief commercial officer Erik Severinson. That includes an industrial footprint to source parts and build vehicles locally. That’s why the company is adding EX60 production to the Volvo plant in Charleston, South Carolina.

“Globalization is dead. Now it is a regional world,” said Samuelsson. China will have its own vehicles and software. Europe is full speed ahead on electrification. The U.S. still needs plug-in hybrids and more conventional cars. But it can all be done with shared development, parts, and tech, relying on Geely and the Chinese ability to engineer faster and for lower cost. “It is not the styling that costs money, it is the expensive components,” added Samuelsson.

Volvo wants to be more successful in Japan and sees the EX60 as an opportunity to make inroads.

Will Samuelsson Retire a Second Time?

Will Samuelsson be around to see it through? He returned as CEO in April 2025 for a two-year term, replacing Jim Rowan. While his term is set to expire next April, he has said the timing isn’t rigid. It’s a board decision, but he thinks they will ask for his recommendation.

“I think it is important to have somebody who knows the industry. You need to understand how life is in the car factory when you work with suppliers and so on. It is also good if you understand the Swedish culture, maybe even know the language to be part of the team and go out and speak to people in the factory,” said Samuelsson. “The ability to communicate is important. You need the right person who is driving change, not giving up, and being passionate about what you want to achieve.”

But he tells MotorTrend he isn’t thinking about his successor now. His focus is on bringing the EX60, which started production in April, to market.