Volvo is gearing up to introduce an extended-range electric vehicle (EREV) in the U.S. market. The Swedish automaker is planning to launch a large SUV tailored for American families, which will be manufactured at its plant in Ridgeville, South Carolina.
In light of declining global sales and software challenges, Volvo announced a series of new initiatives, including a significantly upgraded EX90 electric SUV, the commencement of gasoline XC60 production at the Ridgeville plant, and the introduction of a new type of EV in the U.S. by the end of the decade.
The company revealed that it will produce an EREV in the U.S. to address the anticipated slowdown in fully electric car sales once the federal tax credit expires on September 30. Volvo’s CEO, Hakan Samuelsson, described the upcoming EREV as the “second generation of hybrids,” combining electric car features with a backup engine for extended range.
EREVs function as electric vehicles with a gasoline generator onboard to recharge the high-voltage battery while driving. This technology aims to alleviate range anxiety and has gained traction in the automotive industry, with several manufacturers, including Hyundai, Nissan, Scout Motors, and Ford, developing EREVs for the U.S. market.
Volvo, under the ownership of China’s Geely Group, will focus on developing the EREV primarily in Sweden but will prioritize its suitability for the American market. The company emphasized that the new EREV model will cater to the needs of American families and will be manufactured in South Carolina.
While Volvo did not specify the exact model to receive the EREV technology, the XC90 or a similar large SUV is likely to be the chosen candidate. The company’s Chief Commercial Officer, Erik Severinson, highlighted the importance of offering plug-in hybrid or extended-range technology in the SUV segment.
Volvo’s recent launch of the XC70 SUV in China, a long-range plug-in hybrid with 124 miles of electric-only range, indicates the company’s commitment to expanding its electrified product portfolio. The upcoming EREV for the U.S. market is expected to play a crucial role in Volvo’s product lineup moving forward.
For more information or tips, readers can contact the author at suvrat.kothari@insideevs.com. Stay tuned for further updates on Volvo’s electrification plans and the upcoming EREV launch in the U.S.