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

JUL 2 2018 BY VANJA KLJAIC 21

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.

New Volvo XC40 - exterior
13 photos
New Volvo XC40 - exterior New Volvo XC40 (ICE) - exterior New Volvo XC40 (ICE) - exterior New Volvo XC40 (ICE) - exterior New Volvo XC40 - exterior New Volvo XC40 - exterior Volvo V40 New Volvo XC40 (ICE) - exterior Volvo XC40 T5 plug-in hybrid Volvo XC40 T5 plug-in hybrid Volvo XC40 T5 plug-in hybrid New Volvo XC40 - exterior

Source: Wards Auto

Categories: Volvo

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21 Comments on "Volvo XC40 Electric Likely To Be Profitable If Priced At $50,000"

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MTN Ranger

Any hints as to the size of the battery pack? If it can do 150 miles for $50k, it’s not a great deal.

It looks like a nice Model Y competitor, though.

Deane

An XC40 EV will be probably a foot shorter than the Model Y, so a little better better for use in the city.

Davek

I saw an XC40 yesterday for the first time. Pretty car, but also pretty big. Not the kind of boat I’d like to navigate around any European city. And it’s too tall for the highway, with all of that Cd*A meaning that your big expensive battery won’t last long and your “fast” charging won’t be. I think (hope?) that EVs will be the death of SUVs. People are already noticing how well the IONIQ does with its set of six AAs 😉

@Volvocars: Aerodynamically optimised V60 EV! Now!

Another Euro point of view

I agree that bulky SUV and electric cars don’t mix well. Now the problem is that people seems to want the big bulky car AND the green wash et the same time. Let’s them deal with the short range or pricy battery that goes with it.

R.S

The problem is, that people seem to want SUVs/CUVs. Just look at the sales data in basically any market.
Until 2016 the Camry was the best selling no truck, since then it’s either the Nissan Rogue, or the Rav4, or the Honda CRV.

YTD there have been 1,998,562 cars sold in the US and 2,704,639 SUVs. Car sales are down about 250k, SUV sales are up around 250k. If this trend continues, then SUVs might soon outsell cars 2:1

And it’s not much different in other markets. The SUVs are gaining and therefore the cars are loosing market share.

Davek

Of course AEPOV and R.S are both right, tastes are moving away from lower, sleeker vehicles, but I hope that physics will prevail upon people to slowly change their minds, even if they don’t actually understand the mechanisms behind it. In the end I won’t really care what other people are driving, but for the moment, when the form factor that I want doesn’t really exist, I’ll keep hoping that car makers don’t put ALL of their eggs in the SUV/CUV basket.

viriato

Look at Ford. The future has SUV shape, unfortunatelly. I hate that, but I think is unavoidable. The FIRST motivation for tu buy a car is how it looks. And people like how the SUVs look. That’s a fact.
If they are more expensive, more unsafe, less agile, more noisy, less efficient…. if the car likes, is not a problem.

Unplugged

I don’t think anyone (except solely EV companies) has ever been fearful that an automaker will lose money on an EV. Unlike EV automakers, traditional manufacturers can simply shift EV losses to their gas counterparts. As well they should, by the way.

Nozuka

Why should they produce at a loss? They are not a charity.

Robb Stark

They shouldn’t. But they can. In order to meet American MPG or European CO2 grams per km regulations.

It would be even better if they produced at Tesla levels of Economies of Scale in order to profit.

Anthony

Looking forward to this vehicle. Not sure I can afford 50K+ but mid to upper 40K is ok, especially since Volvo should still have the EV incentive available.

Nozuka

Let’s hope it already has some extras at this price point…

Nice

And more to come, Polestar, Lynk &Co, xc50 and xc20?

Empire State

Volvo passenger cars are from a Chinese company, not a Swedish company. The Wards article info source does say “Swedish-Chinese,” but why truncate this?

antrik

While technically true, this is not how most people see it. Chrysler is still considered an American car maker, although Italian-owned; Jaguar is still considered British, although Indian-owned; Lamborghini is still considered Italian, although German-owned; and so on.

Mikael

It is a Swedish company. Not Chinese, not swedish-chinese.

The owner of the owner of that swedish company is Chinese though. But plenty of companies have owners from different places. I’m a part owner of Tesla for example which by that standard would not be a US company.

Guest

The XC60 PHEV is supposed to start at $53,000, but unfortunately every one I have found online has been loaded up with options, to the point that they have sticker prices of $65, 000-$70,000. Is anyone actually willing to pay that kind of money for an XC60? I hope they don’t do the same thing with the XC40.

MTN Ranger

Unfortunately, Volvo seems to have migrated from a Buick level company to a luxury nameplate over the years. Witness the fully loaded $110,000 XC90 PHEV.

Hauer

We should also not forget that Volvo/Geely is producing its own batteries already (under licence from LG).

Hauer

EVs will bring back aerodynamic cars.
There is a difference Between having to spend a few additional €$£ or having to stop for 30 more minutes when travelling greater distances.

Most likely I will stay with my cw=0.23 and lower TM3 reservation and not for the 0.34 and high XC40.
I could wait until 2021, so availability not a big problem.

Murrysville EV

Don’t be fooled; “the $50,000 range” means $59,999. And that’ll just be the starting price.

I thought this was the EV I wanted, but if it’s going to cost more than a Model 3, no thanks.