Photo: Volvo
We’ve known for a long time that 2019 will be the year Volvo transitions to electric drivetrains, including the Polestar performance brand with the 2 sedan and 3 crossover utility vehicle. And for that matter, the XC40 EV will spearhead the electric revolution with a starting price to match the R&D costs of the newcomer.
Speaking to Wards Auto, chief executive officer Hakan Samuelsson told the motoring publication that the electric version of the compact luxury crossover is closer to $50,000 than the $35,000 to $40,000 reported on previous occasions. “We are planning that should be a profitable car,” the head honcho is eager to highlight.
Some automakers went ahead with their electric vehicle strategy without paying too much attention to the financial aspect. Fiat is the perfect case in point, losing tons of money on each 500e it sells. Sergio Marchionne gave different figures on this matter, with losses ranging from $14,000 to $20,000 for each model that Fiat sells.
In addition to the steep starting price, how does Volvo plan to keep development and production costs under control in the long run? Referring to Polestar’s know-how in this domain, Samuelsson argues he “can carry back the technology into Volvo and also into lower price brackets. That’s the whole idea.”
Even though electric vehicles are still on the expensive side of personal transport, chief exec Samuelsson said that costs would go down as the technology becomes more mainstream. Come 2025, half of Volvo’s global sales will consist of EVs.
A first step has already been taken in this regard, with Volvo announcing that the diesel is out of favor with the Swedish automaker. The S60, which is manufactured in the United States, is the first Volvo in a long, long while offered without a diesel option. And speaking of the S60, the Ridgeville-based plant where it’s made will also be the home of the next-generation XC90, which will start production in 2021.
Confirmed to offer an all-electric variant as well as Level 4 self-driving technology, the third generation of the mid-size luxury crossover will ride on the SPA II platform.
Some automakers went ahead with their electric vehicle strategy without paying too much attention to the financial aspect. Fiat is the perfect case in point, losing tons of money on each 500e it sells. Sergio Marchionne gave different figures on this matter, with losses ranging from $14,000 to $20,000 for each model that Fiat sells.
In addition to the steep starting price, how does Volvo plan to keep development and production costs under control in the long run? Referring to Polestar’s know-how in this domain, Samuelsson argues he “can carry back the technology into Volvo and also into lower price brackets. That’s the whole idea.”
Even though electric vehicles are still on the expensive side of personal transport, chief exec Samuelsson said that costs would go down as the technology becomes more mainstream. Come 2025, half of Volvo’s global sales will consist of EVs.
A first step has already been taken in this regard, with Volvo announcing that the diesel is out of favor with the Swedish automaker. The S60, which is manufactured in the United States, is the first Volvo in a long, long while offered without a diesel option. And speaking of the S60, the Ridgeville-based plant where it’s made will also be the home of the next-generation XC90, which will start production in 2021.
Confirmed to offer an all-electric variant as well as Level 4 self-driving technology, the third generation of the mid-size luxury crossover will ride on the SPA II platform.
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