Volvo has confirmed that more plug-in hybrid models are coming. The brand’s best-selling car – the XC60 SUV – will continue to be sold, even though its replacement – the all-electric EX60 – has just been launched.
Speaking to The Independent at the launch of the EX60 in Stockholm, Volvo CEO Hakan Samuelsson confirmed that the XC60 will stay in production, with a facelifted version also on the cards.
“We will improve it and it will stay on the market as a sort of bridge solution as long as it is needed,” he said. “We are dogmatic about full speed with all electric cars; the new platform is the foundation for that. But we're less dogmatic in saying a date when we really will close down [plug-in hybrid production] and abandon our customers. So, if they still want the plug-ins, no problem.”
The EX60’s new SPA3 platform uses advanced technology that makes it cheaper to produce than many rival all-electric models, and that brings financial advantages to Volvo. “We can now be very neutral because of our margin parity. So, if people want to go EX, no problem – it’s the same margin for us. And if they stay with a plug-in hybrid, let them stay,” said Samuelsson.
Samuelsson also confirmed that Volvo would be working with parent company Geely to develop further plug-in hybrid models. “We cannot develop something from scratch as it will be too expensive,” he said.
Asked if the XC60 would be replaced by an all-new plug-in hybrid model jointly developed with Geely, Samuelsson replied: “Even a bestseller needs to have some kind of improvement. So, let's see how that looks. But if you would do a new generation of that, it's likely we will combine it in some way [with Geely], but I think it's too early to talk about it. Actually both 60 and 90 are really selling well right now and are surprisingly timeless, both in design and quality.”
However, Samuelsson did offer some hints to the future of plug-in hybrid models that will wear Volvo badges, especially with help from Geely – as Volvo has already proven with the China-only XC70 model.
“The plug-in hybrids are moving from being a totally conventional car where you put in some smaller batteries to have a better performance in a test cycle – I'm exaggerating a bit. That is of course not a very good way” he said.
“So now we need to move into where the plug-in hybrid should be in an electric car, which has a backup engine when the batteries are flat. And that is the development we will see. And then I think we have reached solutions till the last customer is ready to go electric.
“This would of course be super costly to develop two parallel technologies – that's why we say we put everything on all-electric and then, in a smart way, we develop together second-generation plug-in hybrids where I think XC70 is an indication of what those second-generation cars would look like.”
The XC70 was co-developed with – and will be built by – Geely in China. Volvo has said that it’s possible it could come to Europe at a later date.
