After reaching an agreement with the U.S. government to continue selling cars here, Volvo isn’t wasting any time. Industry publication Automotive News reports that the automaker is expected to release a new electric SUV to replace the EX40 next year, which will arrive as a slightly larger model with a lower price.
The new EX50 will reportedly be a compact SUV with a starting price in the high $40,000 range. Sources told Automotive News that the new model is taller and longer than the EX40, which starts at more than $56,000 before options and destination charges.
Volvo reportedly developed the EX50 on its new SPA3 platform, and it is expected to enter production in spring 2027 at the automaker’s new $1.3 billion Slovakian factory. While the facility can reach 250,000 units annually, the EX50 could account for around 90,000 of those vehicles, according to estimates by AutoForecast Solutions.
Like all automakers, Volvo doesn’t comment on future products, but the company is expected to bring a range of electric vehicles to the U.S. by the end of the decade. A spokesperson told Automotive News, “That’s where we see the market growing. So we’re going to continue to invest in expanding our electric vehicle (EV) lineup.”
Volvo and its sister company, Polestar, are both owned by Geely, a Chinese company. That ownership structure put both automakers at odds with tightening U.S. trade regulations, but unlike Polestar, Volvo reached an agreement with the federal government. U.S. sales of Polestar vehicles will be banned with the 2027 model year. As a result, we won’t see future models like the Polestar 7 crossover, but some of that model’s design and features are expected to arrive in the new EX50.
One New Jersey Volvo dealer told the publication that it was “both exciting and a little disappointing” to get a Polestar-derived Volvo model here. “At least I know Volvo will get a competitive product that gives us real differentiation from Tesla,” he told Automotive News.
We don’t have specs or details on the EX50 yet, but its updated platform enables an 800-volt architecture for faster charging. As an EV developed as such from the ground up, it should also offer better interior packaging than the EX40, which was built on the XC40’s bones.
