Tag Archives: Volvo

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Volvo Hit with U.S. Class Action Lawsuit Over XC40 Recharge Safety Defects

Volvo’s reputation for safety is under scrutiny once again. Hot on the heels of a warning from the U.S. National Highway Traffic Safety Administration (NHTSA) concerning its hybrid and electric models, the Swedish automaker is now facing a class action lawsuit in the United States over alleged safety defects in its fully electric XC40 Recharge SUV.

The lawsuit, filed by more than 100 vehicle owners, accuses Volvo of knowingly selling a vehicle with serious and potentially dangerous flaws—chief among them, instances of uncontrolled or unexpected acceleration. The plaintiffs claim that these defects present a clear danger to drivers, passengers, and others on the road.

At the center of the legal action is lead plaintiff Robert M. Becker, who alleges that the 2024 model-year XC40 Recharge he leased began exhibiting abrupt jerks and spontaneous acceleration within weeks of delivery. According to Becker, these episodes occurred during everyday driving scenarios, such as gear changes or while using the EV’s “One Pedal Drive” mode—a feature designed to enable regenerative braking and reduce reliance on the brake pedal.

Becker and other plaintiffs argue that the issue is not isolated. They claim Volvo either knew—or should have known—about the defect, citing internal pre-production testing, customer complaints (including those for the related Polestar 2 model), service reports, and data reported to NHTSA. Despite mounting evidence, the lawsuit alleges that Volvo downplayed the seriousness of the issue and implemented only partial remedies.

“The defects pose a significant risk of accident, injury or property damage,” the complaint states, adding that Volvo’s actions constitute “fraudulent concealment” and a violation of multiple U.S. consumer protection laws.

So far, Volvo has issued two recalls related to the XC40 Recharge in the U.S. market. One involved a software issue that could cause sudden power loss, while the other addressed a potential water intrusion issue affecting the accelerator pedal sensor on certain 2021 and 2022 models. However, plaintiffs argue that these recalls were too narrow in scope and failed to address the underlying problems with the vehicle’s control systems.

The legal filing demands a jury trial and seeks compensatory and punitive damages, restitution of profits allegedly obtained through false advertising, and a court-ordered injunction requiring Volvo to fix all affected vehicles.

This latest development adds to growing scrutiny over the reliability of Volvo’s electric lineup at a time when the company is pushing aggressively toward an all-electric future. With consumer trust and brand equity hanging in the balance, the outcome of this case may have far-reaching consequences—not just for Volvo, but for the broader EV market where software-driven control systems are increasingly at the heart of the driving experience.

Volvo has not yet issued a public comment regarding the lawsuit.

Source: U.S. National Highway Traffic Safety Administration (NHTSA)

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Volvo Cars Posts SEK 2.9 Billion Core Profit as Turnaround Plan Gains Momentum

Volvo Cars reported an operating result of SEK -10.0 billion for the second quarter of 2025, a figure skewed by significant one-off charges. When adjusted for those exceptional items, however, the company posted a core operating profit of SEK 2.9 billion, signaling that its SEK 18 billion turnaround plan is beginning to gain traction.

The reported loss was primarily driven by an SEK 11.4 billion non-cash impairment tied to revised financial assumptions for the EX90 and ES90 electric vehicle platforms, as well as SEK 1.4 billion in restructuring costs related to the ongoing reduction of 3,000 global positions. Without these items affecting comparability, Volvo’s underlying EBIT margin stood at 3.1%.

Retail sales fell by 12% year-over-year to 181,600 units, and revenues totaled SEK 93.5 billion. Yet despite the dip in volume, CEO Håkan Samuelsson remained upbeat:

“The market continued to be challenging in Q2,” he said. “However, our turnaround actions are starting to show results. In a market with headwinds, we made a clear improvement of free cash flow versus Q1, and our EBIT margin, excluding exceptional items, was slightly higher.”

Turning Point in Volvo’s Transformation

Earlier this year, Volvo launched a sweeping SEK 18 billion cost and cash turnaround plan, now visibly underway. The strategy revolves around three core pillars: profitability, electrification, and regionalisation.

On the profitability front, job cuts and spending reductions are already being implemented, with 1,100 employees having left the company. Efforts to slash material costs include deeper collaboration with Geely Group on procurement and co-developing models for the Chinese market. At the same time, Volvo has slowed its investment pace and reduced working capital demands to boost cash flow.

These efforts are setting the stage for sustainable future profitability, supported by advanced manufacturing techniques such as mega-casting, cell-to-body battery integration, and in-house e-motor development.

EV Acceleration: EX60 and ES90 Lead the Charge

Volvo’s future hinges on electrification, and that strategy remains intact. Development of the born-electric EX60, a key entry into the premium midsize SUV segment, is on track. It will be the first model built on Volvo’s next-gen EV platform — designed for lower cost and better performance.

The ES90 all-electric sedan will arrive this autumn, targeting premium buyers with a zero-emissions offering. Meanwhile, the EX90 — following software improvements — is now fully market-ready and manufactured to meet the high standards of Volvo’s customer base.

Recognizing the transitional role of plug-in hybrid vehicles (PHEVs), Volvo is also preparing to launch the XC70, its first extended-range PHEV, with production starting in Q3. This model is expected to perform strongly in China and other markets where charging infrastructure remains limited.

Going Regional: Adapting to a Shifting Global Landscape

With globalization under strain, Volvo is leaning into regionalisation. It is decentralizing governance, starting with its China and Americas operations, to allow faster responses to local market dynamics.

Volvo is also localizing production to mitigate tariffs and supply chain challenges. The XC60 will now be assembled in Charleston, USA, while in Europe, Volvo is building out its Kosice plant in Slovakia, which will produce the upcoming Polestar 7 and a new Volvo model yet to be revealed.

Looking Ahead: Positioned for Recovery

While macroeconomic conditions remain tough, Volvo’s proactive cost and product strategies are already showing early promise. The EX30, now made in Ghent to avoid tariff exposure, is ramping up sales, while the refreshed 90 Series and new models like the EX60, ES90, and XC70 are expected to drive growth.

“When market sentiment improves, Volvo Cars will be well-positioned for profitable growth,” said Samuelsson. “With a future-proof product line-up and a leaner, more efficient organisation, we’re confident in the path ahead.”

Despite the headline figure, the second quarter represents a turning point for Volvo Cars — a moment when restructuring pain starts giving way to operational gains. If momentum continues, 2026 may mark the beginning of a new, electric-powered chapter in the company’s storied history.

Source: Volvo

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Volvo to Begin U.S. Production of XC60 at South Carolina Plant in 2026

Volvo Cars has officially confirmed that it will begin producing its best-selling XC60 mid-size SUV at its U.S. plant in Ridgeville, just outside Charleston, South Carolina. The move, set to begin in late 2026, comes as the Swedish automaker looks to strengthen its position in the U.S. market while strategically sidestepping tariffs imposed by former U.S. President Donald Trump.

The decision marks a significant milestone for Volvo’s American operations, especially as the XC60 continues to dominate the brand’s sales charts. In the first half of 2025 alone, the XC60 accounted for over 33 percent of Volvo’s U.S. sales, with a 22.9 percent year-over-year increase in June and a total of 21,907 units sold that month.

A Strategic Shift for a Critical Model

“Adding the XC60 to our Charleston production line will further strengthen its position and attractiveness in the competitive U.S. market, while supporting and creating American manufacturing jobs,” said Håkan Samuelsson, CEO of Volvo Cars. “It is also in line with our ambition to build where we sell and reinforces our long-term commitment to the U.S. market.”

The Ridgeville plant, which began operations in 2018, currently assembles the fully electric EX90 flagship SUV and the Polestar 3. However, both models have struggled to gain traction in the U.S. market. By adding the XC60—a proven sales leader—Volvo hopes to invigorate production lines and better align with U.S. consumer preferences.

Luis Rezende, President of Volvo Cars Americas, echoed the sentiment: “The XC60 is the right car for this market. It offers the best of Volvo in a versatile size with the powertrain options to suit our U.S. customers. We’re proud we’ll soon be able to offer American families the XC60 they love, assembled here by American autoworkers.”

A Pillar in Volvo’s Global Portfolio

The XC60 isn’t just Volvo’s top performer in the U.S.—it’s a global powerhouse. With over 2.7 million units sold globally, it recently surpassed the iconic Volvo 240 as the brand’s all-time best-selling model. U.S. customers have long gravitated toward the XC60 for its blend of safety, luxury, and Scandinavian design.

The model will be produced in both mild hybrid and plug-in hybrid variants in Charleston. That’s a particularly strategic move, given that 25 percent of XC60s sold in the U.S. this year are plug-in hybrids—making it the fourth best-selling luxury plug-in hybrid in the country. For Volvo, it’s not just about meeting current demand, but also about accelerating its push toward electrification.

Investment in the Future

Volvo has invested $1.3 billion into the Ridgeville facility over the past decade, preparing it for high-volume, flexible production. The plant now includes a state-of-the-art battery pack assembly line and upgraded body and paint shops. These enhancements ensure the factory can handle a wide variety of platforms and powertrains.

Governor Henry McMaster and state officials have played a key role in supporting Volvo’s expansion, with South Carolina’s pro-manufacturing policies and workforce development initiatives cited as major factors in the decision.

Looking Ahead

With the addition of the XC60, Volvo is reinforcing its commitment to building vehicles closer to where they are sold—both to reduce costs and to stay agile in a turbulent global trade environment. While the fully electric EX90 will continue to target forward-looking buyers, the XC60 will serve as the brand’s volume leader and bridge to an electric future.

In a year when Volvo celebrates 70 years in the U.S. and surpasses 5 million vehicles sold stateside, the XC60’s American production marks a new chapter in the company’s legacy—and a bet that South Carolina can deliver for one of Europe’s most storied automakers.

Source: Volvo