Why Volvo’s Plug-In Hybrids Are Necessary For The Brand’s EV Future
The latest step in the path to electrification for Volvo is the all-new EX90. They call it their flagship SUV, and with good reason. Volvo decided to offer it in only two premium trims, ditching the usual base trim, and gave it pricing that puts it right up there in luxury car territory.
Volvo isn’t exactly a luxury brand, but it is premium. We spoke with Gaurang Kalsaria, Head of Future Vehicles for Volvo Cars USA, about how the EX90 fits into their grand plan and where they stand on EVs.
The Path To Full Electric
Electrification isn’t something new for Volvo. Every automaker is taking its own approach, with Toyota famously stating EVs were not the only way forward, but Volvo is all-in on all-electric. Its lineup already includes gas, hybrids, and plug-in hybrids, so there’s something for everyone.
The EX90 is simply the latest step in the path to fully electric vehicles. “This will be our flagship, seven-seat, fully electric SUV. It’s completing our bookend, so we have the EX30 as well as the EX90,” said Kalsaria. “It’ll be top of the line.”
“We say EX30’s, little shot of espresso. The EX90 is your full cappuccino with all the bells and whistles,” – Gaurang Kalsaria, Head of Future Vehicles, Volvo Cars USA,
Those bells and whistles include Kalsaria’s favorite feature. “It’s the backlit wood deco,” he said. While it looks like wood trim during the day, it transforms at night. “There are SunLike LEDs placed behind the wood decor. That’s such a nice warm feeling, a nice little glow.” It looks good, but also serves a purpose. “It actually helps with your circadian rhythm to avoid causing drowsiness and make sure you’re focused on the road.”
A Welcome Escape From the Noise Of The World
While some EVs are overloaded with technology that distracts, the EX90 keeps to a more minimalist approach. Kalsaria recalls a Volvo ad campaign. “I remember we did this one advertisement right outside the New York Auto Show. It was eight, ten years ago. It was, don’t go for the German techno, go for the Swedish metal instead.” Years later, the EX90 continues to embrace that idea by offering an interior that serves as an escape rather than creating sensory overload.
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That interior includes wool and unique Nordico imitation leather that’s sustainably sourced. It proves premium doesn’t have to be ostentatious. Instead, it’s about simplicity and refined elegance. While leather has long been the go-to for luxury interiors, Kalsaria says Volvo customers are embracing this new option.
“We’ve done customer research. We’ve done clinics with the materials. They’re very accepting of the Nordico,” he said. While Volvo is trying alternate materials, that does not mean leather is necessarily gone for good. “We are looking at the different market trends for this price point, whether or not to bring leather in the future,” he said. It’s key at this premium price to be sure the product is just right. This includes deciding which trim levels to include.
Keeping The Lineup Simple
“We are launching the vehicle with the Plus and the Ultra Trim. If you look at our current lineup, we have Core, Plus, Ultra,” said Kalsaria, noting the absence of the base trim for the EX90. “It’s a limited offer. We wanted to keep it simple for the first model year, and we are seeing good demand for it.” Production is already under way at Volvo’s South Carolina plant to fulfill strong customer pre-orders, so the strategy appears to be working.
The introduction of another electric vehicle to the lineup doesn’t mean gas and hybrids are on their way out, yet. “Currently we have a full lineup of plugin hybrids. We see very strong demand. We’re segment-leading in PHEVs in the premium segment. We offer mild hybrids. So the full lineup is already electrified,” Kalaria said. Electrified is one thing, but fully electric is another and it’s a gradual process.
“We don’t see PHEVs going away overnight. Our plug-in hybrids are not going away. Our mild hybrids are not going away.”
He acknowledged that plug-in hybrids are “a steppingstone in an electrification journey” for customers who aren’t quite ready for full electric. “We want to get the customers used to having to plug in overnight. And then when they’re ready to take the leap, maybe in a few years, then there will be an electric version of maybe a similar car for them.”
As the pace of EV sales growth slows and profitability continues to be a challenge, many automakers are adjusting their goals. That includes holding off on the development of new EVs and pushing out dates for being fully electric. At Volvo, everything is still on track with Kalaria saying, “We haven’t changed our strategy yet – 2030 is when we said we’ll be fully electric. So, about six years still.” Today, the EX90 is the cappuccino and the EX30 is the shot of espresso. In six years, expect that lineup to grow. Volvo pumpkin spice latte, anyone?
