Volvo's Shift: Are Wagons a Thing of the Past?

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Volvo's Shift: Are Wagons a Thing of the Past? - Image for illustration purposes only
03-10-2025motortrend
In a surprising announcement, Volvo's CEO Jim Rowan revealed at the ES90 electric hatchback sedan launch that the company may move away from its cherished wagon models. This shift reflects a broader trend in the automotive industry, as Volvo adapts its strategy to meet the changing preferences of consumers for SUVs and hybrids.

A Profitable Pivot

- Changing Landscape: Rowan highlighted that the growing popularity of SUVs and higher ride heights have transformed the vehicle market.
- Production Constraints: Limited production capacity restricts Volvo's ability to offer a diverse range of body styles, particularly wagons, which require extensive design modifications.

Future Models Strategy

Volvo's "8x8" strategy aims to introduce eight new models over the next eight years, but practical realities may influence this plan:

- Model Uncertainty: Due to various uncertainties, the plan might be adjusted to a 7x7 format, resulting in one fewer model to develop.
- ES90 Introduction: The new ES90, described as a lifted hatchback, blends elements of both wagons and sedans, focusing on practicality and cost-effectiveness in production.

What's in Store for Volvo?

The upcoming lineup will likely include the following models:

- Current Models: EX30, EC40 (formerly C40), EX40, and EX90.
- Upcoming: ES90 and the highly anticipated EX60 (expected in 2026), along with the Chinese EM90 van.

There is speculation that the potential eighth model could be a smaller sedan or hatchback.

The Future of Wagons

Interestingly, existing Cross Country wagons will remain available in the U.S., with updates expected in a couple of years. However, Rowan suggests that models needing less engineering—such as cosmetic variations and trim options—will shape Volvo's future, rather than traditional wagons.

  

Summary

Volvo's CEO hints at a strategic shift away from wagons to focus on SUVs and hybrids in response to market demands. While the brand plans to launch new models, the future of conventional wagons remains uncertain, as the company prioritizes profitability and production efficiency.

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