A WORLD-class car brand will launch a stylish US SUV – the perfect “Plan B” for drivers wanting electric power with petrol backup to rival GM.
The Swedish car giant says the hybrid will offer the best of both worlds as it looks to rival General Motors.
Volvo made the announcement in America, where it already produces the EX90 and Polestar 3.
The new model will be built at the same facility, alongside the upcoming XC60 crossover from 2026, and will hit American roads before 2030.
Volvo boss Hakan Samuelsson said: “It will be more an electric car, but with a Plan B.
When the battery is flat, you have a combustion engine kicking in, but normally you’d drive it electric.”
The new SUV marks a major shift for Volvo, which had previously aimed to sell only electric cars by 2030.
That plan has been scaled back after EV sales growth slowed and the US federal tax credit was cut.
The company’s rollout of electric models has also faced hurdles, from technical issues to tariffs, with some of its best ideas ending up wearing Polestar badges instead.
An extended-range hybrid could be the answer.
Known as an EREV, the tech allows drivers to run electric most of the time, but fire up a petrol engine on longer trips – removing range anxiety.
Industry analysts say it’s a smart move.
Hybrid sales are rising fast in the US, even as pure EV demand plateaus. By offering a stylish SUV that can do both, Volvo is giving buyers a more flexible option.
Prices are still under wraps, but Volvo has been hiking costs across its line-up. The XC90 plug-in hybrid now starts at around $76,000, so the new model could carry a similar or slightly higher tag.
Volvo hasn’t said what the car will look like, but with 93 per cent of its US sales coming from SUVs, experts believe it will be a crossover.
Some reports suggest it could be similar to the XC70, which Volvo launched in China last month.
That model pairs a 1.5-litre engine with a 40kWh battery, good for around 80 miles of electric range, double what Volvo’s current plug, in hybrids offer. A bigger battery and powertrain could be used for the US version.
The launch also takes advantage of a new tariff deal, making it easier to export the SUV back to Europe.
With rivals like VW’s Scout Motors and Hyundai planning their own EREV models, Volvo is keen to stake its claim in the growing hybrid market – and this new SUV could be the one to watch.
Electric vehicles vs gas
Pros and cons of EVs vs gasoline-powered vehicles
EV PROS:
- Convenient (when charging at home)
- Cheaper (depending on state or city)
- Cheaper maintenance, due to lack of mechanical parts
- Great for commuting
- Reduced CO2 emissions
- Federal and state tax incentives
- More performance (speed, handling – depending on the make and model)
EV CONS:
- Higher initial cost
- Higher insurance rates
- More frequent tire and brake replacement intervals
- Higher curb weight (thus causing more rapid wear on crucial parts)
- Low resale value
- High depreciation rates
- Lack of charging infrastructure
- Unreliable public charging (related: slow charging times)
- Poor winter and summer performance
- Lack of clean energy alternatives means more “dirty energy” from coal and nuclear sources
- Range anxiety
GAS PROS:
- Highly developed refueling infrastructure
- Fast refueling
- Cheaper insurance rates, depending on make, model, and configuration
- Established repair industry
- Lower initial cost
- Higher range before refueling, especially with hybrids
- Many manufacturers produce nearly emission-less engines
- Cheaper refueling, depending on the location
GAS CONS:
- Finite resource (related: heavy dependence on petroleum)
- Carbon emissions/greenhouse gases
- Higher repair costs
- Higher insurance rates, depending on make, model, and configuration
- Varying costs at the pump, depending on state, city, and county
Source: Car & Driver, Perch Energy, AutoWeek
