Volvo Walks Back EV Initiative: Hybrids Will Stick Around
"The transition to electrification will not be linear," says Volvo exec Jim Rowan.
If you were taken aback by the reveal of the heavily revised 2025 Volvo XC90 earlier this week—just days after our first go in the all-electric EX90 that was ostensibly meant to replace it—then relax. You weren't alone. Just as we've seen many automakers do throughout 2024, Volvo is now reframing its all-in position on electric vehicles.
It's not without reason. Even if the EX90 fits fully into most existing CX90 owners' daily use cases, it's not for everyone. There's also the significant price increase: at least $9,000 in America, and around $15,000 CAD for Canadian buyers. During the live reveal event, Volvo Cars chief executive Jim Rowan wasted little time getting to the revamped message:
"We understand that many people are not ready or able to fully embrace electric cars right now. Maybe that's because they feel charging infrastructure or the speed of charging isn't quite there yet," said Rowan. "Maybe it's because they worry about the range. Maybe it's simply because the thought of changing to electrical propulsion after decades of driving an internal combustion engine is a big step. And if that's you, we understand, and we want to help you along the way."
Rowan went on to say that Volvo is "not dogmatic about [its] 2030 ambitions." The company is still prepared to go fully electric by the end of the decade according to the exec, but that is based on each market. The revised corporate goal? 90-percent electrification—which includes plug-in hybrids such as the XC90—with the remaining portion taken up by mild-hybrid models.
Let's not forget that Volvo is owned by Geely, the Chinese conglomerate that also owns Polestar and Lotus. With many Western nations introducing tariffs for Chinese-built cars, Volvo could face serious headwinds should it import vehicles. EX90 models destined for Canada and the US are built locally at the Charleston, South Carolina, a plant capable of producing up to 150,000 vehicles a year.
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Kyle began his automotive obsession before he even started school, courtesy of a remote control Porsche and various LEGO sets. He later studied advertising and graphic design at Humber College, which led him to writing about cars (both real and digital). He is now a proud member of the Automobile Journalists Association of Canada (AJAC), where he was the Journalist of the Year runner-up for 2021.
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