The company aims at profitability with a highly attractive option of a fully electric Volvo XC40 with a $50,000 price tag

Volvo XC40 is slated to be the Swedish company's first all-electric vehicle model, slated to hit showrooms somewhere in early 2020. The electric version of the highly-appealing crossover is set to be revealed after Polestar, Volvo's sub-brand launches its second car; the Polestar 2, due sometime in 2019. Additionally, after the reveal of the all-electric XC40, Volvo is planning to follow it up with the XC90 CUV in the same all-electric attire.

While the Volvo XC40 seems like an appealing endeavor for customers, many have feared that the carmaker simply won't turn a profit with this vehicle. After all, most of its direct competitors in the same range in the EV market are priced above it; for example, the Jaguar I-Pace starts at a whopping $69,500 MSRP - way above the current $38,495 MSRP for a Volvo XC40. However, as it was revealed earlier today that the Volvo XC40 EV - even at a relatively inexpensive price point - will be a clear money maker for the Swedish-Chinese car company.

“From day one (it will be profitable). I think we will have no intention or ambition to sell electric cars with losses,” Håkan Samuelsson told the media during an interview at the automaker’s new U.S. vehicle-assembly plant.

While some pundits reported that the Volvo XC40 EV will be priced somewhere between $35,000-$40,000, Samuelsson implies it may be closer to $50,000. When he was asked whether the company can be profitable in selling an EV in "in the $50,000 range," the CEO said yes: "We are planning that should be a profitable car."

New Volvo XC40

New Volvo XC40

All things considered, this is a great sign for the Swedish car maker. After all, since the merger with Geely automotive, the company has been making strides in improving their design language, quality and the overall impression they make on their would-be buyers. For Volvo, putting their EV efforts into high gear makes all the sense in the world. After all, the future will be electric. This is especially true for the domestic Chinese market, where the sprawling, newly discovered middle-class is getting more and more financially capable. Add all the eco and air pollution problems, followed by the guidelines and regulations set by the government, and going electric will be the only way to go in the future.

And maybe, just maybe, it's time for Volvo to have their own Audi or Emirates moment, reinventing themselves and becoming, once again, the next best thing in this whole new automotive world.

Gallery: Volvo XC40 Electric Likely To Be Profitable If Priced At $50,000

Source: Wards Auto