Volvo is not giving up on the U.S.
In a new interview with Automotive News Europe, Volvo Cars CEO Håkan Samuelsson expressed that despite the hurdles that Volvo and the global car industry are facing, he believes that he could reverse its slowing sales numbers and return to growth in 2026, as it shifts and optimizes production of its fully-electric and plug-in hybrid models.
However, the possibility of it happening largely rests on sales performance in a key market for many major automakers: the United States, where EV sales have been hampered by the effects of recent legislation targeting incentives tied to EV purchases. Samuelsson noted that while he anticipates the sales of EVs and other electrified cars to become more challenging, he is convinced that combustion cars won’t fully regain their market share, as some Americans will be converted to electrified options.
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“It will be difficult without the incentives, but on the other hand, you should be careful about believing that the market will go back to combustion cars. Why? Because people have underestimated a big advantage of having all-electric cars and long-range plug-in hybrids, which is that you can leave the garage filled up every morning,” Samuelsson said. “With a long-range PHEV, you can drive in electric mode for up to 200 km, which is about 125 miles. You very seldom need more range than that in a day, which means the driving experience would be much like an all-electric car. The backup engine would very seldom kick in.”
Samuelsson told AutoNews that he believes electrified cars, such as plug-in hybrids (PHEVs) and fully electric cars, are “a valid solution in the U.S.” due to their convenience factor, adding that “a lot of people” have the capability of keeping such cars plugged in at their homes; something that could add another dimension of convenience for many motorists.
“It’s true that BEV sales have dropped because so many people purchased their cars before the incentive ended. However, when we are through that process, I think people won’t just look for a combustion car. They will look into long-range PHEVs. That’s something I’m sure will happen,” he said.
Photo by Josh Lefkowitz/Getty Images)
Volvo saw a sales dip last month, but EV and PHEV sales stayed strong
Samuelsson’s remarks come shortly after the Swedish firm reported a significant decline in sales during November 2025. According to numbers released by the automaker, overall global sales for Volvo declined by 10% year-over-year, with 60,244 cars sold during the month. Sales were led by the midsized XC60 crossover SUV with 16,267 units, followed by the XC40/EX40, with 13,965 units, and the XC90 at 8,304 units.
However, a more positive takeaway from the numbers is that Volvo’s sales of electrified models, specifically its fully electric and plug-in hybrid models, accounted for 50% of its sales during the month. Fully electric cars like the EX90 and EX40 made up 24% of its total sales for the month, while plug-in hybrids accounted for 26%.
In a statement, Volvo COO Erik Severinson noted that U.S. sales are softening following the phase-out of Federal EV tax credits back at the end of September, though its performance in the related segment is a positive in the brand’s eyes.
“This performance underscores the brand’s momentum in the electrified segment,” Severinson said. “We are encouraged by the growth in sales of our fully electric cars and accelerated deliveries of the new XC70 long-range plug-in hybrid in China. This continues to expand our position in the rapidly growing electrified segment.”
Volvo
Volvo is leaning on its Chinese partner for PHEV and EV technology
In September 2024, Volvo announced that it had abandoned its goal to become a fully electric car manufacturer, citing changing market conditions as the reason for retracting the commitment made only three years prior.
“There is no long-term future for cars with an internal combustion engine,” former Volvo CTO Henrik Green said at the time. “We are firmly committed to becoming an electric-only car maker, and the transition should happen by 2030. It will allow us to meet the expectations of our customers and be a part of the solution when it comes to fighting climate change.”
However, in his recent AutoNews interview, the current Volvo CEO noted that the company will maintain a diverse mix of its second-generation PHEVs and a lineup of fully electric cars for the near future, although it will work with a critical partner to bring them to market.
“We will need this bridge technology until 2035 to 2040. But we will also have a really good lineup of BEVs by 2030. To have both options — and to do this in a smart way — we will look at what we can borrow from the Geely Group,” he said. “That is what we did with the XC70. Now we are looking to expand the car to Europe. We have some ideas on how to do something similar in the U.S.”
Final thoughts
Although it may seem that Volvo has its plate full dealing with the fallout from the Federal EV tax incentives and slumping EV sales in the U.S., it is important to note that the Swedes have a more fundamental issue to address apart from its major investments in the electrified space.
Recently, Volvo rolled out the XC70 in China, a plug-in hybrid crossover aimed to fill a significant hole in its lineup there. It boasts an electric-only range of 200 kilometers (124 miles) and a combined range of more than 1,200 km. When asked about the timeframe for the rollout of the XC70 long-range PHEV, Samuelsson noted that it is “working as fast as we can” to bring it to market, though it faces a major hurdle to get the vehicle to the European market, its first outside China.
“We have to switch to Western-compliant electronics and software because it’s a no-no to use Chinese technology in Europe — or in the U.S,” he said. “We also have to meet European safety and emissions standards.”
As for the United States market, the CEO says that building the XC70 in the U.S. “would be a long shot,” adding that such an endeavor “would require a huge investment.” Currently, it is focusing on bringing a plug-in version of the XC60 to the U.S., but he isn’t ruling out any more vehicles for the U.S. market with the XC70’s cool tech.
“But of course, all our cars will be upgraded when it comes to performance, so I wouldn’t rule out us doing something with longer range. We will talk about this in more detail later.”
