Volvo EX90: Production Launched in Charleston, SC!

What?

Volvo Cars has officially commenced series production of its highly anticipated all-new Volvo EX90 electric three-row SUV at its factory in Charleston, South Carolina. The EX90, built on the Scalable Product Architecture 2 (SPA2) platform, is set to hit the market in the latter half of this year. The first customer-bound EX90, a Denim Blue model, is headed to a customer in the U.S., with plans to export the American-made vehicle to global markets. Local production in the U.S. is crucial to qualify for the $7,500 federal tax credit, particularly for models priced below $80,000.

Why does it matter?

With an MSRP starting at $76,695 plus a $1,295 destination charge, the Volvo EX90 will offer 6- and 7-seat versions, both featuring a dual-motor, all-wheel drive powertrain and a sizeable 111-kilowatt-hour battery. The production capacity of the Charleston factory, which also produces the S60 sedan, is estimated to reach up to 150,000 units annually. Volvo’s investment in expanding the body shop, paint shop, and introducing a modern battery pack production line signifies a significant commitment to electric vehicle manufacturing in the U.S.

How is it going to shape the future?

The launch of the Volvo EX90 marks a pivotal moment for Volvo Cars’ electrification strategy in the U.S. market. This move comes as the company aims to shift its sales focus from rechargeable hybrids to all-electric vehicles, such as the upcoming EX90 and existing models like the XC40 and C40 Recharge. The success of the EX90 and future models like the anticipated Polestar 3 production at the same site could redefine Volvo’s position in the evolving electric vehicle landscape. As Volvo navigates challenges such as high tariffs on Chinese-made EVs affecting models like the EX30, the company’s investment in U.S. production signals a bold step towards a more sustainable and electrified future.