Technology
Volvo Unveils Hybrid SUV for US Market, Targeting GM Competition

Volvo, the renowned Swedish automotive manufacturer, has announced the upcoming launch of a hybrid SUV in the United States, aimed at providing a compelling alternative for drivers seeking both electric and petrol power. This new model, positioned as a “Plan B” for consumers, will allow for electric driving primarily, with a petrol engine ready to assist when necessary.
The announcement was made during a press event in the US, where Volvo already produces vehicles such as the EX90 and Polestar 3. The new SUV marks a significant pivot for Volvo, which previously committed to selling only electric vehicles (EVs) by 2030. The company has revised this strategy in response to slowing EV sales growth and changes to the federal tax credit for electric vehicles.
Strategic Shift and Market Demand
Hakan Samuelsson, Volvo’s Chief Executive Officer, emphasized the hybrid’s dual functionality, stating, “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.” This approach aims to alleviate range anxiety for consumers, a common concern among potential electric vehicle buyers.
The decision to introduce a hybrid model comes as Volvo faces challenges in its rollout of electric models, including technical issues and tariffs. Some of the company’s most innovative concepts have been redirected to the Polestar brand, which operates under the Volvo umbrella. Analysts suggest that a hybrid vehicle, known as an Extended-Range Electric Vehicle (EREV), could effectively address the current market demand, especially as hybrid sales in the US are experiencing rapid growth.
In contrast to the plateauing demand for pure electric vehicles, this new SUV offers a versatile option for consumers. By combining electric and petrol capabilities, Volvo is positioning itself to attract a broader audience, particularly in a market where flexibility is increasingly valued.
Production Plans and Pricing Expectations
The hybrid SUV will be manufactured at Volvo’s existing facility in the US, alongside the forthcoming XC60 crossover, with plans for it to hit American roads before 2030. While pricing details remain undisclosed, analysts speculate that it may align closely with the current starting price of the XC90 plug-in hybrid, which is around $76,000.
Volvo has not yet revealed specific design elements for the new SUV. However, given that approximately 93 percent of its US sales come from SUVs, industry experts anticipate that the new model will likely take the form of a crossover. Some reports indicate that it could resemble the recently launched XC70, which incorporates a 1.5-litre engine paired with a 40kWh battery, offering around 80 miles of electric range—double that of Volvo’s current plug-in hybrids. A more powerful battery and powertrain may be utilized for the US variant.
The launch also coincides with a new tariff agreement that simplifies the export process for the SUV back to Europe. This strategic timing positions Volvo to better compete with rivals such as VW’s Scout Motors and Hyundai, which are also planning to introduce EREV models in the near future.
As the automotive industry adapts to shifting consumer preferences and regulatory landscapes, Volvo’s hybrid SUV could emerge as a significant player in the evolving market, appealing to drivers seeking a balance between electric efficiency and traditional petrol reliability.
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