If you’ve been worried about your favorite Swedish family hauler disappearing forever, you can finally exhale. Volvo has just confirmed that the beloved XC90 will indeed get a third generation, despite earlier plans to phase it out completely in favor of the all-electric EX90.
CEO Håkan Samuelsson dropped this welcome news during a recent investor call, putting to rest months of speculation about whether the XC90 would survive Volvo’s electric transition. For families who’ve fallen in love with this seven-seater’s blend of safety, luxury, and practicality, this announcement feels like a Christmas morning surprise.
Why This News Matters to Real Families
Let’s be honest – the XC90 has become more than just another SUV. It’s the vehicle that countless families trust with their most precious cargo. Whether you’re shuttling kids to soccer practice, loading up for weekend adventures, or simply need the peace of mind that comes with Volvo’s legendary safety features, the XC90 has earned its place in driveways across the globe.
The fact that Volvo is committing to another generation shows they understand something important: not everyone is ready to go fully electric, and forcing that transition too quickly would leave many loyal customers behind.
The Electric Elephant in the Room
Here’s where things get interesting. Volvo originally planned to replace the XC90 entirely with the EX90, their flagship electric SUV. The EX90 was supposed to be the future – cleaner, more tech-forward, and aligned with Volvo’s ambitious goal of going completely electric by 2030.
But reality has a funny way of changing plans. The electric vehicle market isn’t growing as fast as many automakers predicted, and customer preferences are proving more nuanced than simple gas-versus-electric debates. Samuelsson acknowledged this shift, noting that “the electric market is not growing as fast as we thought some years ago, but it’s still growing.”
What We Know About the Next-Generation XC90
While Volvo hasn’t spilled all the details (they’re keeping us in suspense), there are some intriguing clues about what the third-generation XC90 might look like.
Location, Location, Location
There’s talk about building the new XC90 in Charleston, South Carolina, starting around 2028. Currently, most XC90s roll off the production line in Torslanda, Sweden, but expanding to the US plant makes sense for several reasons. It would reduce shipping costs for American buyers and potentially create more jobs in the region.
The Charleston facility already builds the EX90 and Polestar 3, so adding the XC90 to the mix would maximize the plant’s efficiency. Plus, Volvo is already planning to build the popular XC60 there by late 2026.
The Hybrid Revolution
Perhaps the most telling clue comes from Volvo’s recent launch of the XC70 in China. This new model features long-range plug-in hybrid technology with battery options of 22kWh or 40kWh. Samuelsson specifically mentioned that these long-range plug-in hybrids are “something European consumers will want to have in the future.”
Reading between the lines, it seems likely that the third-generation XC90 will embrace this hybrid approach rather than going fully electric right away. This makes perfect sense for families who want cleaner technology but aren’t ready to commit to full electric, especially for long-distance travel or in areas where charging infrastructure is still developing.
Why the Timing Makes Sense
The current XC90 has had quite a journey. The first generation launched way back in 2002 and lasted an impressive 13 years before the second generation arrived in 2015. That’s nearly a decade ago, making it due for a refresh by automotive standards.
Volvo hasn’t been sitting idle, though. They’ve given the current model two significant facelifts – one in 2019 and another in 2024. The latest update brought substantial changes including new headlights, grille, bumpers, and a larger touchscreen dashboard. These updates were supposed to carry the XC90 through to 2030, but clearly, Volvo sees more opportunity in the model.
Learning from the EX90’s Growing Pains
The EX90’s journey hasn’t been entirely smooth. Originally revealed in 2022, production delays due to software issues pushed the actual launch to 2024. While Samuelsson says production is now ramping up with “considerable improvements of the software quality,” these challenges likely reinforced the wisdom of keeping a proven model like the XC90 in the lineup.
What This Means for Buyers
If you’re in the market for a three-row SUV and have been considering the XC90, this news gives you some interesting options to consider.
Current buyers can feel confident that they’re not investing in a dead-end model. Volvo’s commitment to another generation suggests continued support, parts availability, and resale value protection.
Future buyers might want to consider waiting, especially if you’re not in immediate need. The third-generation model will likely offer the latest in hybrid technology, updated safety features, and potentially better value if built domestically.
The Bigger Picture
Volvo’s decision reflects a broader industry trend of automakers walking back overly ambitious electric timelines. The company has revised its original 2030 EV-only goal to having 90% of sales be electrified vehicles (including hybrids) by 2030, with the full transition now pushed to 2035 or later.
This more gradual approach acknowledges that the transition to electric vehicles needs to happen at a pace that works for real families, not just corporate sustainability reports.
Looking Forward
While we wait for more concrete details about the third-generation XC90, one thing is clear: Volvo is listening to its customers. In an era where many automakers are pushing radical changes, Volvo’s decision to continue developing the XC90 shows they understand the value of evolution over revolution.
For families who love what the XC90 represents – safety, versatility, and thoughtful Scandinavian design – this news couldn’t be better. The future looks bright for this Swedish family favorite, and we can’t wait to see what the next chapter holds.