I attended a brunch with the leadership of Volvo Cars yesterday, and the frank and plain-spoken CEO Håkan Samuelsson captured my attention with the answers to two questions. The first was whether or not we’ll ever get a wagon again and the last, my question, was what the hell the company is going to do with its South Carolina factory.
Being frank and plain-spoken doesn’t mean spilling all the beans, and Samuelsson managed to not commit to any specific body styles, but there’s a way to read his responses as an admission that wagons are in Volvo’s future. It’s also basically confirmed that a three-row vehicle is coming to America, designed for America. That probably means an SUV, but I’m hoping it’s a van.
I am en route to a Ford event this morning to see something Bronco, and the Ford people might be cheering the fact that the company’s new energy company, Ford Energy (clever!), has found a customer for its batteries. The world is a strange place these days, and while everyone was concerned about Chinese brands infiltrating Canada, the most obvious outcome is non-Chinese brands importing Chinese-built cars.
That’s not the case in Australia, where BYD is absolutely cleaning up in a world of high gas prices, and companies like Toyota are losing.
Volvo Won’t Just Be SUVs In Five Years
Yesterday’s event was ostensibly about the US debut of the Volvo EX60, a capable-seeming and fast-charging electric crossover with a super cool charging door. There was a lot of talk about the EX60, of course. That wasn’t all the talk, though.
Credit to Road & Track‘s Will Sabel Courtney for grabbing the microphone early in our brunch-side conversation (I had a juice) and asking the question everyone wanted the answer to: Will Volvo bring back the wagon?
The last Volvo wagon is on its way out in the United States and disappearing globally, being replaced by a bunch of crossover-like objects. As an enthusiast, this is not ideal. It’s very easy to say ‘Oh, no one will buy these,’ but Volvo has always done well by finding niches in the market. Constantly trying to compete in the most competitive market segments is going to be a tough game.
Samuelsson, who was CEO and then not-CEO and then CEO again, was excited to grab the microphone and answer this question, stating that in ten years he doesn’t think “We’ll only have SUVs from Volvo.” That’s not quite saying that they’ll all be wagons in the future. He then added that the lower air resistance is a big reason why wagons are appealing from an EV perspective. Later he sped up the timeline by stating “I think we will not only have SUVs five years from now.”
There’s some interesting timing to this question. Unlike a lot of European automakers, Volvo has a factory in South Carolina. A factory that, for various reasons (EVs, sedans), has been underutilized. Exactly what’s going there has been a little vague.
I got the last question at the brunch and, having ingested a spicy Thai flatbread, I realized as I was about to speak that I had a huge lump of phlegm in my throat. Would I be able to talk at all? Suppressing panic I attempted to speak and no sound came out. I made an awkward throat-clearing sound and asked about the South Carolina factory’s under-utilization and what might be done about it.
“I agree with you,” Samuelsson said, adding that “You either use your factory or you don’t have a factory.”
“We need to fill the factory, that’s the first option and best option. We will bring in the XC60 at the beginning of next year.”
That much was basically known. What he added was well-speculated, but I’m not sure I’ve seen confirmed.
“We are developing a car with the US market in sight, which should be a big seller, [a] bigger car probably, probably a third-row, family-oriented, which also needs to be multi-fuel execution,” he said. “With such a big car it’ll be difficult to go directly only to electric, so this is a car we’re looking into.”
The obvious guess here is that it’s a three-row crossover. Everyone loves a three-row crossover, and right now Kia, Hyundai, and Toyota are owning the hybrid three-row space. Can I suggest something else fun? If we take the answer to the first question, that people are tired of just having SUVs, could it not be a van?
For the Chinese market, Volvo has already made a Zeekr rebadge that’s called the Volvo EM90. Chinese cars exist in their own development universe, so it’s unlikely that the Zeekr-badged EM90 will be sold here. Whatever we’re getting is going to be built in America, for America first (although, as Samuelsson pointed out, the tariff deals now mean that it’s almost free to export cars from South Carolina).
Why not a van? It’s an open space that Volvo hasn’t historically filled but that there might be an appetite for. This could just be journalist-brain, but imagine an ID.Buzz that’s a hybrid or EREV? That might be the ticket.
Nissan Could Bring Chinese-Built Cars To Canada
Canada has decided to allow Chinese cars into the country under a special program, and while it’s not a huge number of cars to begin with, I think the expectation has been a lot of Chinese brands like BYD and Geely showing up. Instead, it’s maybe Lotus and Nissan who could get there first given the existing dealer network.
For Nissan, that could be cars from its JV with Dongfeng. Here’s Bloomberg on that possibility:
The Japanese carmaker aims to tap demand for low-cost, electric vehicles manufactured with Dongfeng Motor Group Co. in several markets, including Brazil and Mexico — and potentially including Canada, Christian Meunier, Nissan’s head of the Americas, said in an interview.
“In Canada, the government has opened the door for some Chinese products,” he said, although he didn’t specify which Nissan Dongfeng models were under consideration for possible export to Canada, or how soon that might take place. “We’re looking at this.”
Get ready to buy an N6!
Australia Loves Chinese Brands, Everyone Else Is Hurting
Gas prices in Australia are incredibly high, and with that price increase have come with an appreciation for Chinese cars and trucks. Now data is showing that Chinese brands are growing way faster than pretty much everyone else.
China’s BYD logged the biggest increase in unit sales in the January-April period, according to recent figures from Cox Automotive, selling 13,269 more cars than the same period a year ago. Chinese peers Chery, Geely, GWM and Jaecoo rounded out the top five.
On the other side of the ledger, market leader Toyota saw the steepest sales decline in the period, of 17,502 units, followed by fellow Japanese manufacturers Mitsubishi, Nissan, Mazda and Ford of the U.S.
“There’s a cost-of-living crunch and more and more people are trying to buy something with electrification, and both of those things are so suited to the Chinese brands,” said Mike Costello, an industry commentator at Cox Automotive. “They’re cheaper than everybody else and they do hybrids and EVs really well.”
Obviously, Japanese brands still make up 40% of the market, and Chinese brands have the most room to grow, but they’ve been here for years and these are becoming larger and larger numbers.
Ford Energy Gets Its First Customer
Realizing it might not quite need all the battery capacity it built up, Ford shifted some of its domestic battery production into Energy Storage Systems (ESS) under a new company called Ford Energy.
Now, they’ve got a first customer, as the Detroit Free Press reports:
On May 18, Ford Energy, a wholly owned subsidiary of Ford, said it signed a five-year “framework agreement” with EDF power solutions North America to make battery energy storage systems for EDF.
EDF power solutions North America is an entity of the EDF Group, a French government-owned multinational electric utility company that produces low-carbon electricity. It especially focuses on using nuclear and renewable energy.
Ford Energy President Lisa Drake said the agreement with EDF power solutions validates the market’s need for a battery energy storage supplier such as Ford, which combines its industrial-scale manufacturing knowledge and experience with accountability.
While there’s been a general distaste for renewable energy in the current White House, the reality is that it makes a ton of sense. The major negative argument against renewables is that solar, for instance, is diurnal. Having energy storage mitigates a lot of this challenge.
What I’m Listening To While Writing TMD
It’s Skin Cancer Awareness Month and our friends at XPEL are celebrating with National Don’t Fry Day, so I’m going to do a week of beach songs. Today, it’s “Summer Babe” by Pavement.
Observed annually on the Friday before Memorial Day, National Don’t Fry Day raises awareness about the dangers of ultraviolet (UV) radiation and promotes sun-safe habits as Americans head into summer. In recognition of the occasion, XPEL is offering 15% off automotive window tint installations at participating authorized dealers and company-owned stores across the U.S. on May 22 only.
The Big Question
What non-SUV should Volvo build next?
Top photo:Volvo
What exactly does this paragraph add to this post?
Does this fine website have editors? I’m a busy person, ain’t no one got time to read all that.
A way to get critics of solar energy onboard is to explain that battery storage is like a coal car on a steam train. In fact, we could just rename batteries “coal bins,” and call the recharging process “shoveling.” While this would only convince the dimmest of the public, 37% of the population is still a big number.
It is really painful to admit that this would work brilliantly.
We created SUVs to get around MPG requirement. Now we have EVs that don’t use gasoline at all, but need to be slippery through the air, something a tall vehicle with a large frontal cross section just can’t do. And before that “wElL aKsHuAlLy” guy at the back stands up with some edge case, shut up. A large frontal cross section is never going to be as efficient as a low frontal cross section. It’s the same reason “Performance SUV” is an oxymoron; sure you might be able to add enough power to punch a brick through the air, but trying to make it corner is like putting figure skates on a hippo; there are zero conditions where an SUV will out perform an estate with the same power train. None.
The move to EVs negates the bureaucratic reasons for SUVs to exist, range anxiety and performance can finally shift the market back to a low-slung car with lots of storage and utility that also performs in the corners while being more efficient on the highways.
Well, considering Subaru just abandoned the outdoorsy wagon market, I would think Volvo or even GM (the Trax is remarkably close) could slip right in
Yeah, I agree that this is a segment Volvo could re-enter. I think a challenge is that Volvo would need to drop their pricing back to when they were for everyperson vs what they price at now.
Volvo: a wagon, obvi. But adjacently, isn’t what we want the practical, solid, no-nonsense Volvo? I’m a potential customer for the EX60, but damn, Volvo, why did you have to complicate it with that air suspension? Omit that and give me some tartan seats and you could probably take 5K off the price. And then I won’t have to keep 5K in the bank for the foreordained inevitable off-warranty repair! Simplicate, dammit!
I was just telling a coworker that we need more wagons, and hybrid wagons would be my preference. I really like the Crown Signia, but I lament the cost and would like to think that more options on the market from other manufacturers would help bring lower-priced options to the market (even though I know that wouldn’t be the case with Volvo).
It was maddening spending two weeks in Europe and seeing all of the wagons we’ll never get here. There are so many! You can just go out and buy wagon versions of so many regular cars! What if we had that here instead of a bajillion trucks and crossovers? That would be neat.
Man, going to Volvo’s website to see their model lineup is just depressing. It’s the blandest looking lineup I’ve ever seen, literally just a sea of white and silver CUVs (minus the wagons that are going away). Like, they couldn’t have made some of them a color of some kind?
Everyone loves wagons. I love wagons. Wagons wagons wagons.
I don’t. Liftbacks liftbacks liftbacks.
Nice. Lou Reed vocals meet heavier, trashy iguitars. Though thankfully not as heavy as Lou Reed’s “Metal Machine Music.”
Re: Metal Machine Music: “Anyone who makes it to side four is dumber than I am” – Lou Reed
I think Volvo should make a motorcycle next. Just so I can see what their version would be.
It’ll be an airbag on wheels.
Volvo has been a zombie brand to me when it got bought by the Chinese firm. It went all LED and screen based.
Cholvo SUV is all they do.
They should just do an entire screen as a headliner in the 3 row. Because that’s about all the innovation I can see them mustering up.
I’ve said in the past that my ideal car would be “a boxy (early-00’s V70-esque) Volvo wagon, but electric”. That form factor, with physical controls, in EV not EREV.
I’m not under the slightest illusion that that’s what Volvo is going to try to sell us, but I do wish they would.
So electrification: In Tennessee for 2026 you are charged an additional $200 to register a BEV, increasing to $270 in 2027. The Federal government is also looking to implement an additional BEV tax of $100 as early as next year, eventually increasing to $150. You are potentially looking at nearly $600 annually to register a BEV for something that a few years ago was about $125.
Taxes for road maintenance need to be paid, but that seems WAY more punitive than the gas taxes that haven’t been raised since the 1990’s.
For the record, HEV/PHEV annual costs in Tennessee are currently an additional $100.
Yeah and the rumor with temporarily suspending the gas tax will there be anything for EV owners? Hah yeah no. With those increased there are more taxes on EVs vs what you pay on gas tax also if you are somewhere like me Indiana also charges a yearly excuse tax based on the original value of the car so ummm isn’t that going to the roads also? The same said roads that are always in shit shape and under constant construction. /Rant over hah
Excessively punitive is the point. Everyone discouraged by this who buys an ICE vehicle instead is a win for the fossil fuel industry.
I also agree that road taxes need to be paid in some way by EVs but these penalties are excessive compared to actual taxes paid if they were ICE vehicles. In KY they even portrayed hybrids and EVs as “unfairly” not being taxed and proceeded to slap unfair taxes on them by exactly who you’d expect.
And all of this on top of the irony of being anti-EV because this is “coal country”. Where we get most of our energy from coal…… so it would actually boost the state economy.
I guess sometimes rhetoric has to win over logic.
Let’s not kid ourselves. It opens the doors to vans, not necessarily wagons.
Even though we as Autopians want wagons too…
Sure, beach band, Pavement, of course.
Nice pull!
I am hoping they build a full EV wagon. Personally I don’t have a need for a EREV and fine driving full electric and a wagon would be a nice replacement for the Polestar 2. Nothing else out there has struck my fancy as a future replacement besides the R3X and Scout the latter would replace both the PS2 and FJ while the former would just replace the PS2. I also would like more cheaper sporty EVs only thing currently affordable with decent range that is a 2dr is the Daytona and yeah no thanks to that. Seems all the other affordablish EVs are all crossover size or bigger.
Since we’re talking electric cars a bit here, let me throw in this basically unrelated story: We all like to hear the throaty, meaty engines in muscle cars, hypercars, etc. But my son said last night, “Know what’s intimidating to me? Seeing some sleek electric car like a Lucid Dream or a Tesla Model S just take off at light speed without making a sound.” And you know what, I think I agree with him.
People associate spectacle (noise/smoke) with power. To me, speed is all that matters.
All of the comments I get about my electric motorcycle is how crazy the silence of it all is.
I love to hear the motor whine and to me it sounds like the Tumbler from Batman when I pin the throttle: Batmobile (Tumbler) sound FX form the Dark Knight Trilogy
Volvo needs to bring back the C30.
Gonna need at least 450 ponies on tap too.
A Volvan! What an idea. I hope it’s boxy.
Volvo: Buzz that Volkswagen! We wish.
I kid. We really wish for the EREV equivalent of a 240 wagon.
Ummm, ‘Lower air resistance’ and ‘Volvo’ don’t traditionally go together that well, even in conjunction with ‘wagon’…
Boxy but good.
For sure.
Volvo should build an EREV wagon.
Also I do not think most Americans (not car nerds) could tell the difference between a wagon, hatchback, crossover, or SUV at this point.
Volvo build wagons and just call them SUVs!!!
Americans are unfortunately very good at noticing the difference between wagons, hatchbacks, and crossovers. As evidenced by the V60 Crosscountry, the Audi Allroad, the VW Jetta Alltrack, and the Buick CrosstourX all putting on plastic cladding and a couple inch lift and still departing the market. Look at Subaru, they just turned the Outback into a CUV.
Here’s the qualifier: none of the aforementioned brands are particularly desirable at the current moment. If Honda or Toyota reintroduced a wagon, I wonder if it would succeed.
Here’s the thing: sales of the new Outback have apparently plummeted, and not just because there isn’t a ton of supply. People just don’t want it, which is entirely justified. There are FAR better cars out there for the price that are more efficient, and cheaper. It’s not a wagon anymore. It hasn’t been a wagon for a while IMHO, but it at least looked like one. Now it doesn’t. It’s far too square.
Maybe they need to pull Paul Hogan out of retirement. I watched Crocodile Dundee in Los Angeles for the first time this weekend. It was pretty weak compared to the first two but it amused me he drove an Outback throughout the movie. For those too young to remember, Paul Hogan was also the spokesman for Subaru during this time period. The world’s first sport utility wagon (according to Subaru).
Subaru did it for years with the Outback before it actually turned into an SUV, I think.
A new P1800ES
PERFECT!!!
oohhhh that lede image. so perfect. so right. so sexy.
I like how the front wheels are, for some reason, turned slightly. And I never noticed that little air dam below the bumper!