Volvo has declared that it will cease sales of its entry-level electric model, the EX40, in the U.S. market. In its place, the company is set to introduce the 2028 facelifted hybrid SUV, the XC40. The new vehicle boasts refined exterior details, giving it a more polished and sporty appearance. Inside, it features an upgraded center console screen and a streamlined infotainment interface. The core attraction of this model lies in its intelligent features, which include the integration of the Google Gemini AI voice assistant and an enhanced safety system with improved sensors and software platforms. Furthermore, customers have the choice to outfit their vehicle with a 3D/360-degree panoramic imaging system.

To address the market void created by the discontinuation of the EX40, Volvo plans to launch the EX50. This model will be constructed on the SPA3 platform and will have a starting price point of around $50,000. This strategic move is designed to strike a balance between Volvo's electrification transformation and maintaining profitability, all while boosting its competitive edge in the market.