Volvo Cuts EX40 from US Lineup, Raising Entry Price for Electric Models
The removal of the EX40 leaves the EX60 as the brand's most affordable US EV for the immediate future.
Volvo is removing the EX40 from its United States electric vehicle lineup, a move that significantly alters the brand's accessible pricing strategy in the region. The decision leaves a notable void in the company's current portfolio of battery-electric offerings.
With the EX40's departure, the upcoming EX60 now serves as the most affordable electric vehicle available from Volvo in the US for the immediate future. According to reports from Jalopnik, the EX60 carries a starting price of approximately $59,795. While Volvo has indicated that a new affordable replacement is slated for release in 2027, this specific timeline has not been independently confirmed beyond initial reports from Electrek.
Portfolio Restructuring
This exit is part of a broader restructuring of Volvo's EV strategy within the American market. The company has already seen the departure of the EX30, signaling a shift in how the automaker balances its product mix. The EX60 is positioned to compete directly with other luxury electric SUVs, specifically targeting rivals such as the BMW iX3 and the Audi Q6 e-tron.
Market Implications
The removal of the EX40 creates a substantial pricing gap in Volvo's US electric offerings. By pushing the entry point for a new Volvo EV to nearly $60,000, the company is effectively moving its electric brand positioning further upmarket in the short term. This shift reflects the ongoing volatility facing luxury automakers as they attempt to balance the high costs of EV development and profitability with the need to drive mass-market adoption.
Future Outlook
Industry observers will be watching to see if Volvo can maintain its electric momentum while operating with a higher price floor. The primary focus now shifts to the 2027 window, where the brand hopes to reintroduce a more accessible entry-level model to recapture the segment lost by the EX40 and EX30. Until then, the EX60 remains the primary gateway for US consumers looking to enter the Volvo electric ecosystem.