Volvo Cars has officially unveiled the Volvo EX60, a mid-sized electric SUV designed to disrupt the market. The Wednesday launch highlights a bold strategy. The company is pricing this electric model lower than its hybrid counterpart.
This move comes despite looming geopolitical friction. President Donald Trump has threatened new trade barriers starting February 1. These potential tariffs are linked to ongoing diplomatic disputes over Greenland.
However, Volvo remains undeterred. The company exports most U.S.-bound vehicles from its Gothenburg facility. Therefore, the Volvo EX60 would be in the direct line of fire.
CEO Rejects “Social Media” Policy Making
Executive leadership appears unfazed by the digital rhetoric coming from the White House. CEO Håkan Samuelsson dismissed the idea that production plans should shift based on online threats.
“New tariffs are not decided by a Truth Social media account,” Samuelsson told Reuters.
He expressed skepticism regarding the implementation of such penalties.
“I have doubts something will come out of this.”
Volvo EX60 Pricing Strategy
The most significant aspect of this launch is the cost. Typically, electric vehicles (EVs) demand a premium of roughly 30% over combustion engines. Volvo is flipping this script.
In Germany, the new SUV will start at €62,990. Conversely, the best-selling XC60 plug-in hybrid costs approximately €67,990.
This pricing structure aims to eliminate the financial barrier to entry for EV buyers. Samuelsson confirmed this parity will extend to the United States. He noted that existing plug-in hybrids already face a 15% duty. Consequently, the competitive landscape should remain stable.
Rollout and Market Focus
European dealerships will receive the vehicle this summer. American consumers can expect a release later in 2026.
Unlike previous launches, Volvo is skipping the Chinese market for now. This mirrors the strategy of its sister brand, Polestar.
The company views this model as a vital volume driver. Currently, fully electric cars account for just over 20% of Volvo’s total sales. To win over doubters, the automaker promises “coffee-break length” charging times.
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