Volvo is an fascinating firm. Wherever you go—even amongst individuals who aren’t notably thinking about vehicles—there’s often a way of respect towards the Swedish automaker. That status has been earned through the years, with the corporate designing, engineering, and constructing autos with restraint.
For Volvo, 2026 is shaping as much as be some of the vital years in its historical past. Manufacturing of the brand new EX60 has simply begun in Gothenburg—the model’s first electrical automobile inbuilt Sweden. This marks a significant funding for the corporate, for Gothenburg, and for Sweden as a complete. Volvo has dedicated over $1 billion to introduce megacasting expertise—large-scale die casting—at its Torslanda plant.
In opposition to that backdrop, it’s a becoming second to take inventory of the place Volvo—and the broader automotive business—stands, in dialog with Eric Severinson, the corporate’s Chief Business Officer.
This story originally appeared on Motor1 Italy
Photograph by: Volvo
Is The Torslanda Plant Prepared For Different Fashions Based mostly On The EX60 Platform?
Sure, a big a part of the funding is in infrastructure. Take megacasting: the true value isn’t the mould, however the machines, the buildings, and the entire course of round it. It’s like constructing a highway—now that it exists, you have to “fill it” with fashions.
We’re beginning at present with the EX60, however the basis is already there for different fashions utilizing the identical expertise, with a lot decrease extra funding. Actually, we’re replicating the identical strategy within the new plant in Slovakia, which has already been designed with future fashions in thoughts.
The place Are The SPA3-Platform Batteries Made, And How A lot Room Is There To Enhance Software program, Batteries, And Efficiency?
The cells come from China, provided by Sunwoda and CATL. However the conversion into full battery packs occurs in-house at Torslanda: the cells are assembled, bonded, built-in into the ground, and fitted with all of the connectors. In contrast to many different automakers, Volvo isn’t shopping for pre-built modules; a big portion of the battery pack is made in-house.
As for scalability, that’s precisely the power of a modular platform: by holding the interfaces between parts fixed, the structure might be stretched or shortened with a excessive diploma of flexibility. That makes it doable to cowl very totally different segments, from compact fashions as much as higher-end autos just like the EX90, and even past.
The software program is totally shared and based mostly on a single electrical structure: all SPA2- and SPA3-based autos use the identical “grasp software program,” which might be up to date centrally throughout the lineup in a short time. The automotive turns into a product that repeatedly evolves, like a smartphone—an idea nonetheless new for a lot of prospects, however one which’s poised to reshape the business.
Photograph by: Volvo
How Do Platforms, Megacasting, And Cell-To-Physique Have an effect on Margins?
The problem is that an EV begins at an obstacle: uncooked supplies value about thrice as a lot as for an internal-combustion automobile. So it’s a must to make up for that with a way more environment friendly manufacturing course of. And that’s the place every little thing modifications: an electrical motor has few elements, in contrast with the a whole lot in a combustion engine. However extra importantly, it’s a must to rethink all the course of—when you construct an EV the identical approach you construct a gas-powered automotive, it finally ends up too costly.
That’s why options like megacasting and cell-to-body integration matter: no modules and no standard battery pack—the cells develop into the ground construction that the seats mount to. That reduces complexity and cuts the price of the ground construction by about 30 p.c.
With megacasting, you chop one other 30 p.c in producing the rear ground construction. The objective is to get prices near a plug-in hybrid—that’s the true turning level. And when costs are at parity, prospects present up. Individuals like EVs, however no one desires to pay extra simply because it’s electrical.
What About Issues Over Repairability And Reliability?
The batteries are designed to final the lifetime of the automobile. And if you concentrate on it, no one actually asks what occurs if a combustion engine fails on a 10- to 15-year-old automotive—regardless that changing it may be extraordinarily costly. Truthfully, I’d be extra apprehensive about that than a couple of battery.
We provide a 10-year battery guarantee; no one gives comparable protection on a combustion engine. For structural parts just like the rear construction or ground: sure, repairs are extra complicated, however strategies exist already to work on elements produced by way of megacasting. It’s extra of a query for insurers, to the purpose that at present we frequently see insurance coverage premiums which can be decrease for EVs than for combustion autos.
Photograph by: Volvo
Who Is The Goal Buyer For The New EX60?
It’s the traditional main household automobile: prospects of their early-to-mid 40s, with 2–3 youngsters, strong revenue, and homeownership. That mentioned, early orders are additionally coming from totally different profiles—folks downsizing from bigger SUVs, for instance, or prospects with out youngsters who’re drawn to the design, software program, and the audio system, which is genuinely spectacular with 28 audio system, lively noise cancellation, audio system within the headrests, and even passenger voice amplification.
What Gross sales Targets Do You Have?
I can’t get into specifics, however the goal is evident: make it a significant success in its phase. At this time we nonetheless promote a number of XC60s, and this EX60 will play an vital function in output at Torslanda, the place we construct about 285,000–290,000 autos per 12 months. So sure, we’re speaking a couple of high-volume product, and early outcomes are very optimistic—we’re already exceeding our targets by a large margin.
What Function Will Italy Play?
Italy isn’t actually a single market—it’s made up of very totally different areas, cut up between North and South. Meaning it’s a must to change your strategy from one space to a different: Sicily and Lombardy, for example, require totally different methods. And diesel nonetheless has significant weight there, particularly for individuals who drive loads, like gross sales reps or professionals who’re continually on the transfer.
With a long-range, fast-charging EV like this, we need to persuade precisely these prospects—people who find themselves nonetheless skeptical however able to make the leap. As a result of when you spend hours within the automotive on daily basis, the consolation and quiet of an EV makes an actual distinction in contrast with even a contemporary diesel.
2028 Volvo EX60 Cross Nation
Photograph by: Volvo
How Do You See Demand For EVs Evolving Over The Subsequent Few Years?
It relies upon closely on the area. In Europe, I’m pretty assured: the trail gained’t be linear, however electrification will proceed. You possibly can already see it in rising vitality costs after the battle in Iran, rising curiosity in used EVs, and a pointy enhance in on-line searches. Germany, Belgium, the Netherlands, and Scandinavia are main the best way.
In the USA, it’s extra difficult: the EV market is declining, many incentives have ended, and there’s a swing again towards combustion engines, additionally tied to vitality independence.
China will electrify, however ranging from the underside: extra inexpensive segments and native producers, with margins beneath rising stress. If we glance 5 years out, we’ll see a world that’s far more electrified than at present and, even when not in all places, EVs would be the majority. In Europe, the true inflection level can be between 2030 and 2035.
What Function Do Dealerships Play At this time?
They’re central. We’re very pleased with our retail community; it’s a elementary a part of our industrial system. That mentioned, we have to evolve: prospects can be more and more digital, extra on-line, extra oriented towards leasing, and dealing with ever-stronger competitors.
So the problem is to remodel along with our sellers: enhance the web expertise, carry the client into the showroom, and ship a very personalised service. The producer can’t do it alone, and neither can the retail community—it must be a shared effort.
What About Subscription Options? Are Clients Prepared To Pay For Heated Seats?
In the event you promote a premium product, you shouldn’t nickel-and-dime prospects: somebody spending about $80,000 shouldn’t be requested for an additional $5 a month for primary capabilities like heated seats—particularly when these options are included on less expensive vehicles. That isn’t the appropriate path.
A paid mannequin could make sense for extra complete software-based providers: connectivity packages or superior driver-assistance suites, probably bundled. As with providers like Netflix or Disney+, a subscription can present entry to extra, precious content material.
However the objective stays to make the client really feel like they’re getting a premium, hassle-free expertise—that’s what creates worth and, in flip, revenue.
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