[Conradi]

I think that either Henrik Green's comments are a little out of context and he didn't mean what they seem to say ie SPA-2 is EV only and no more ICE for any vehicle launched after 2022

Henrik Green's statement "Or in plain English - the cars on the architecture formerly known as SPA2 will be pure electric only" doesn't let much interpretation left. While the XC90 III will be produced in the US, they could remain producing the XC90 II in Sweden. However, who wants to buy an 'old' car, with 'old' tech?

I believe Volvo is taking a very brave step and simply is ahead of the other 'traditional' oem's. Today we see such step as 'impossible', tomorrow they will be praised for their vision.
In 2022 no one is offering a large EV SUV - except Model X - yet and Volvo is suddenly offering two!

 

[Conradi]

Hmmm... so if SPA-2 ICE cars are to come then at first the XC90 Electric will be made in the US only and exported.

Doesn't tally with "build them where you sell them"

I follow quite some international Volvo forums and IMHO the decision Volvo seems to have made to take ICE out of SPA2 is received here in the same way as German Volvo drivers found out that Volvo started limiting the top speed to 180 km/h (112 mph) ;-)
But, guess what? Volvo has never sold so many cars in Germany as it does now.

Maybe an EV won't fit in your personal profile (yet), but I'm pretty sure they have researched the market enough knowing they can make such a decision now. Marketing Wise they step from me too to a leader role.

 

[Conradi]

We don't have to make the decisions, for Volvo. They have to balance risk vs revenue and decided to go for SPA-2 - by the way 'previously known as as SPA-2 - all electric..
See it from the bright side. There is one company already making EV's only and there annual volume is already larger compared to Volvo.....

 

[Conradi]

XC100 will get a name instead. Hopefully that's just a one off for this model and the usual system will remain.

We don't have a clue if XC100 excists. Maybe all rumours pointed to the same car. Like the XC90 Coupe in reality seems to be the P3. The design packaging graphics made clear the car is much larger inside compared to the XC90 II.

Interresting Volvo will come with a large SUV with a real name. XC90 is now almost 20 years the well known designator for Volvo's largest SUV, with quite some marketing value. And suddenly they come with a name. It could be - just my guess - the XC90 II will be updated an continued for PHEV. In that case you want to avoid to have two different cars both designated XC90 on the market.

We all will know during 2022 ;-)

 

[Conradi]

The more time passes, the more I'm ready to switch brands.

To whom? If you're in for an EV à la XC90 - or how they will call it - you can only choose actually between BMW iX and Tesla model X. Two runner ups for worst car design ;-)

All others are smaller and most less premium. The EQS is an other league, than Taycan and e-tron RS should be on your list too.

 

[Conradi]

Well let me end the mystery. Within 12 months Volvo will have a three row 7 seat suv slightly larger than the current XC90 in both hybrid and EV versions
….
Dealers have know this for a year now and seen the production vehicle.

That we all know, but how does Henrik Green's blog fit in your story, or Håkan's remark South Carolina will be EV only, or the new model will be so special (refer 1.0) it get's a name instead?
You end nothing yet ;-)

 

[Conradi]

AutoZeitung has a new article about the next XC90, and motor journalists are usually quite well informed:
.....
They say that the XC90 will be presented "at the end of 2022", that's one and a half years from now! It will go on sale in 2023 then. According to AutoZeitung, it will first start as a BEV and have a PHEV option lateron.

AutoZeitung is mixing old and new information, like we do

The dual-floor approach, for EV and ICE is old news. We now know the new platform will be EV only and the NC plant will produce Ev's only. We only have to get used to this....

 

[Conradi]

Exactly! Volvo is clear, they go all-EV but for quite some members here this is almost unbelievable. That's where the confusion starts ;-)

Every time I read that the XC90 replacement will be electric only, I wonder if it's true. Journalists have a way of writing their opinions like they're based on something. Is there a quote from anyone at Volvo saying that?

Please see the Volvo Tech Moment video's yourself to see Volvo has decded to go for EV only.

Or read Volvo plant in Ridgeville, South Carolina to be firm's first EV-only plant, to build Polestar 3 and XC90 EV, where Hakan Samuelsson stated "We are convinced the premium car market will be electric, and [by going all-electric], we believe that is going to secure a better business, better profitability for us, because being a sustainable brand is making us more premium".

Another clue: Volvo has outsourced their ICE operations into a new company. In the Press Release they stated "The proposed new business would clear the way for Volvo Cars to focus on the development of its all-electric range of premium cars".
Sadly for the employees involved, when shutting down ICE operations, the Swedish unions can't blame Volvo....

 

[Conradi]

The ICE power train business is spinned off to a company Aurobay under Geely Holdings umbrella…..
It is not outsoucing.

Call it what you like, but the message keep the same for Volvo ICE operations: Time to say goodbye ;-)

 

[Conradi]

Late 2020’s?
Volvo is stating they will be producing 50% EV’s half this decade, so 2025. Half their volume is approx. XC90 + XC60. We also know the XC60 will come end 2024.
That leaves no space for new hybrids

 

[Conradi]

Furthest speculation is SPA2 may be one and done for next XC90. Maybe XC60 too, unless it just gets a 2nd refresh on SPA. If all ICE in SPA2 really are canx, then maybe XC90 just gets a 2nd refresh on SPA? But then it's really withering by end-2020s…

A new platform like SPA2 is way to expensive only to use it for some models. Volvo's volume is too small to get the business case done.

My guess, during market studies they have figured out the ICE volume become too low over life cycle to be interesting. Therefore they dropped the 2nd SPA2-floor for ICE, before they had to make final production tooling. That's where the investments come in.
Maybe they extend the life of XC90 II with some refreshment for ICE customers, who knows, but that will work for limited time only.

 

[Conradi]

To put it into perspective. Since Håkan Samuelsson and his team got the lead, according to some Volvo enthusiast they take all kind of shocking decisions:

• They were shocked SPA came with 4-cylinders only;
• They were shocked by the new design language;
• They were shocked top-of-the line engines were plug-in hybrids;
• They were shocked by the limitation of the top speed;
• They were shocked Volvo quitted Diesel;

And see, Volvo had the best result ever and is selling almost 800.000 cars with good margins, while when they didn't take these shocking decisions, they sold only 450.000 units with low margins.

When Volvo goes for EV only it's shocking again, but Håkan Samuelsson's team knows to take the right decisions at the right time

 

[Conradi]

China is the biggest market followed by the USA. The electric strategy may work in China
....
The USA is trickier.

It's not
Tesla sold in April and May the same volume of EV's in the US as Volvo sells cars in one year.

By introducing new hybrids, the would be one of 'me too' manafacturers. By going for EV only they really step out.

 

[Conradi]

New Volvo electric SUV, not XC90 Electric, to rival Tesla's Model X

The Volvo electric SUV will enter production at the Volvo Cars South Carolina factory in the U.S. in 2022.

topelectricsuv.com

Ok, we have a writer mixing new information from the tech event, with old as we do here. And we shall believe they know the price?

Any starting price of an EV is non-interesting while normally providing a small entry battery. I expect/guess the non-XC90 SUV with a 110+kWh battery will hit the $100K.

Off topic:
In Germany the configurator of the MB EQS is released. Starting at €130K you easily hit the €200K and than you don't thick all the options….

 

[Conradi]

This sound clear in two ways: XC90 III - or how it will be named - is full EV only, and the XC90 II won’t be continued for ICE lovers.

Sounds logically: The NC plant is reserved for EV and to support the largest market. Why ship in that case still ICE from overseas?

 

[Conradi]

I think current XC90 just gets a reskin, interior catches up with the 2013-14 concepts and all other SPAs…

Henrik wrote "Soon this old friend will retire…", and that doesn't sound as a make-over.

Tesla is already selling more cars as Volvo and Ford will increase F150 EV production. I think Volvo's decision to go for EV only is an opportunity instead of a thread.

 

[Conradi]

…as well PHEV till 2023-2027

Nope, Henrik didn't write EV, but wrote 'pure electric'....

 

[Conradi]

IMHO your mixing-up with previous terms like 'electrified' or statements like 'Every new Volvo car launched from 2019 onwards will have an electric motor'. In that case, a PHEV and even mild-Hybrid fit in the definition.
Bute 'pure electric', in his 1.0 post Henrik even wrote 'pure electric only', is to me quite clear.

 

[Conradi]

You’re right, Volvo didn’t announced to ban PHEV, but avoid stating the opposite either.

In the car industry there are actually two major possible EV entry scenario’s. Develop complete EV-only vehicles, beside ICE, like VW, Audi and Mercedes now are doing. Or you go for a mix, like BMW’s 'Power of Choice' solution.
When Volvo was still heading the BMW route, the Tech Moment would be the opportunity for them to explain such a mix, dual platform strategy and so on. But they didn’t, it was full-electric only also at those moments were it would fit perfectly to mention ICE.

Please note the XC90 and XC60 are responsible for approx.. half of Volvo’s sales. When both are EV only, (XC90 in 2022 and XC60 in 2024) they already have a 50% EV share before 2025.

 

[Conradi]

Clearly you don't understand marketing.

Please, don't reply only to minimalize the opinion of someone else.
If you think this some special marketing of Henrik, please make clear why...