Volvo Unveils Plans for Extended-Range Electric SUV in the U.S.

Volvo has announced its intention to manufacture an extended-range electric vehicle (EREV) tailored for the U.S. market. This new model, a large SUV designed for American families, will be produced at the company’s plant in Ridgeville, South Carolina. The decision comes as Volvo seeks to revamp its electric vehicle strategy amid declining global sales and technical challenges.

During a media roundtable at the Ridgeville headquarters, Volvo CEO Hakan Samuelsson detailed the features of the upcoming EREV, which the company refers to as “the second generation of hybrids.” According to Samuelsson, the vehicle will perform like an electric car, boasting rapid acceleration, while incorporating an onboard gasoline generator to extend its range. “It’s more of an electric car with a backup engine,” he stated.

The EREV technology allows the vehicle to function primarily as an electric vehicle, with electric motors driving the wheels and batteries that can be charged at any standard charging station. The integrated gasoline generator alleviates concerns about range anxiety, a significant barrier for potential electric vehicle buyers. Other manufacturers, including Hyundai, Nissan, Scout Motors, and Ford, are also developing EREVs to cater to U.S. consumers.

The demand for such vehicles is expected to rise, particularly as the federal tax credit for fully electric cars is set to expire on September 30, 2023. As a result, Volvo sees the EREV as a strategic move to sustain interest in electric vehicles.

Volvo is working on the development of the new EREV across several countries, with most of the engineering taking place in Sweden. Despite this, the vehicle will be designed with American consumers in mind. “The planning will be very much centered around America because this has to be really suitable for America and the big families you have in the country,” emphasized Samuelsson.

Though Volvo has not confirmed which specific model will feature the EREV technology, industry experts suggest that the XC90 or a similar large SUV would be strong candidates. Erik Severinson, Chief Commercial Officer at Volvo Cars, highlighted the significance of large SUVs in the U.S. market, noting, “It’s also a segment where we see the demand for plug-in hybrid or extended range technology.”

In addition to the EREV announcement, Volvo recently commenced production of the gasoline-powered XC60 at its Ridgeville facility, further expanding its presence in the American automotive landscape. The company is also working on upgrades to its flagship EX90 electric SUV, aiming to enhance its appeal amid stiff competition.

As Volvo prepares to introduce this new model by the end of the decade, it positions itself to meet growing consumer interest in versatile electric vehicles that offer both sustainability and convenience. With the automotive industry evolving rapidly, the success of Volvo’s EREV may hinge on its ability to cater to the specific needs of American families while addressing broader market trends in electric mobility.