Volvo is trying to put its stumbling EV back on track

Volvo once had ambitions get out of the gas car business. Now it’s trying to get tough in the EV market.

It is no exaggeration to say that the Volvo EV’s journey has been a difficult one. The compact EX40 has been a consistent success, but other Swedish EVs have had problems. EX90 should be bold words for the futurebut difficult software they forced Volvo into the high-cost segment. The smaller EX30 was no better, with prices raising the launch of the first affordable EV in the EV range, eventually led to its abolition in the US.

But now it is EX60 compact SUVVolvo hopes to revive its EV strategy. Volvo executives gathered in New York City this week to unveil the new SUV’s US debut and celebrate the opening of customer orders later this summer. Starting at $59,795, the next-generation EX60 will be more expensive than the regular, gas-guzzling XC60 crossover, which recently became Volvo’s best-selling model of all time. But it will be cheaper than the plug-in hybrid XC60, which says a lot given the popularity of hybrids these days.

But the EX60 arrives in what is apparently the harshest place for EVs since its launch, thanks to the elimination of the $7,500 EV tax credit, policy changes, and pricing that is making all-wheel drive vehicles more expensive. While EV sales are growing worldwide, the American market is declining. But Volvo thinks that the impressive features of the EX60 – a range of 400 kilometers, 10-80 percent acceleration in 18 minutes, and the flexibility of OTA programs – will be enough to overcome the storm.

“Is this the right time to bring an electric car with everything you hear on the market?” Volvo CEO Håkan Samuelsson said. “I would say yes, because we think this car will not have subsidies or incentives. It will be electric … because we can offer something better to consumers.”

However, Volvo’s previous intentions ending gas sales and it’s still changing. Slowing demand for EVs and concerns about charging infrastructure have prompted some manufacturers to rethink how to transition away from gas-powered vehicles. Volvo has previously said it will stop selling combustion-powered cars by 2030, but now has no firm date. The automaker also said it will expand its range to include that plug-in hybrids and long-range EVsdefining responsibility across companies.

The EX60 represents a new beginning. Volvo started with a blank slate, deliberately removing the idea of ​​a combustion engine from the technology, Volvo CTO Anders Bell said. To achieve this, the developer built its development process around a modern software-defined architecture.

“So all of the training, all of the polishing, all of the tools, all of the learning stuff that’s been painful over the last few years has gone into all of the systems and all of the program,” Bell said.

A permanent peak in software updates will be another standard feature of the EX60. Bell said Volvo will roll out major updates to customers every three months, saying the brand improves when multiple vehicles share a digital architecture. Bell said the EX60 has already been more stable in testing than previous Volvo EVs have done in the same period.

When it comes out, the EX60 will find competition with the Tesla Model Y, one of the most popular cars in the world, as well as many upcoming EVs such as the Rivian R2, and the BMW iX3.

That said, the EX60 is not designed to be a global car, Samuelsson said, noting that it will be sold in the US and Europe. He also said that the world car market is divided into two different markets: the markets around China and the other around Europe and North America. And while Volvo has access to Chinese technology through its relationship with parent company Geely, the automaker will be focusing on Western buyers.

Samuelsson also touted the company’s future hybrid models, which he said would replace the current hybrid model of electric vehicles combined with small batteries for remote electric driving. Volvo’s new hybrids will be like EVs, keeping the combustion engine as a backup for long trips. These EREVs could appeal more to American consumers who are not yet ready to make the switch to electric vehicles, he argued.

Volvo’s use of Android Automotive as its self-driving system will also give the company a competitive advantage over its competitors in the integration of more AI features, Bell argued. This week at Google’s I/O conference, Volvo announced this The EX60 gives Gemini access to the car’s external cameras so an AI chatbot can help drivers interpret road markings and road signs. Volvo also plans to deploy Gemini to about 2.5 million vehicles starting in 2020 through air-to-air software upgrades, he said.

“We didn’t know when those cars were going to be released six years ago that we’re going to update the so-called conversational AI on those cars six years from now,” Bell said. “We didn’t know. This is what we’re doing now.”

However, Volvo’s assembled executives admitted that the company’s EV launch has been difficult, while Bell admitted it had been a “difficult” journey. The EX90 continues to receive software updates to help improve its performance, with the latest fixes and more than 20 issues while bringing significant improvements to driving performance. And in addition to the EX60, Volvo is working on a new EV that will do just that replace the less expensive EX30 in its lineup. But overall, the company is trying to loudly announce that it has learned its lessons and is ready to take on its competition.

“The EX60 will be very tough,” said Erik Severinson, Volvo’s chief marketing officer. “And with the number of cars we’re going to sell, the EX60 will be the biggest at that time. So, more information, more cars, more buyers.”