- Volvo CEO confirms the company is working on a new generation of the XC90 SUV.
- Next-gen SUV may adopt an advanced PHEV setup from the China-bound XC70.
- Current XC90 debuted in 2014 with updates in 2019 and a facelift launched in 2024.
Volvo’s flagship SUV might not be heading for retirement just yet. Despite the arrival of a fully electric alternative, it looks like the XC90 is gearing up for a third generation. The news came directly from Volvo CEO Hakan Samuelsson during a recent earnings call with investors.
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Samuelsson acknowledged the need for a new XC90, noting that the current generation has been on the road for more than 10 years. While he didn’t specify a launch date, he did offer a few clues about what to expect under the hood.
Plug-in Hybrid Setup Likely
The upcoming XC90 is expected to adopt a plug-in hybrid powertrain similar to what’s planned for the XC70, which is due to launch in China in the near future. “This is something I think European consumers will want to have,” said Samuelsson. “Plug-in hybrids with a longer range are a solution that probably we will need for some more years than we thought.”
The larger 40 kWh battery option of the XC70 delivers an EV-only range of up to 112 miles (180 km) on the CLTC cycle. For comparison, the facelifted XC90 T8 has a much smaller 18.8 kWh battery offering 71 km (44 miles) of EV-only WLTP range. Besides making it more attractive to buyers, a more advanced PHEV setup would help Volvo further reduce the average CO2 emissions rating of the XC90 and its entire lineup.
New Platform Still Unconfirmed
Volvo hasn’t revealed which platform the next XC90 will use. The current model rides on the company’s aging SPA (Scalable Product Architecture), so a switch is expected. One possibility is the Geely-sourced SMA (Scalable Modular Architecture), already linked to the XC70. Whether SPA 2, used by the fully electric EX90, or the upcoming SPA 3 from the EX60 can be adapted for non-electric powertrains remains unclear.
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The current XC90 has been around since late 2014, with a mild refresh in 2019 and a more extensive facelift in 2024. The latter was meant to keep it competitive for a few more years, as a plug-in hybrid alternative to the similarly-sized but fully electric EX90. The EV, originally intended to be the XC90’s successor, was introduced in late 2022, but production didn’t start until mid-2024 due to supply issues and software bugs.
Strategy Shift Amid Changing Market Conditions
Back in 2021, Volvo had announced plans of going EV-only by 2030. However, a lot has changed over the past few years, forcing the Swedish brand to rethink its strategy and extend the lifecycle of its ICE-powered lineup.
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However, the slower-than-expected demand for EVs is not the only problem of the brand. In a quest to avoid tariffs, Volvo has been forced to drastically change its future plans – especially in North America and Europe.
The automaker will reportedly start manufacturing the XC60 in it’s Charleston facility in the US from 2027, and plans to strip its US lineup from imported models. As for Europe, production of the EX30 small SUV will move from China to Belgium later this year, while the upcoming EX60 will be manufactured in Sweden from 2026.
Sources: Volvo, Carbuzz