Volvo ends popular V90 model to focus on electric vehicles

In Sweden, Volvo Cars announced its decision to cease global production of the V90 and V90 Cross Country models by September 2025 as part of its strategy to pivot towards an all-electric vehicle lineup. This move marks the conclusion of a successful nine-year run for the V90, a model known for its blend of Scandinavian design, safety, and practicality. The manufacturer aims to transition to a fully electric fleet by 2030, along with goals to reduce CO2 emissions by 65 to 75 percent per car by 2030 and achieve net-zero emissions by 2040. As a consequence of changing market dynamics, including a significant drop in electric vehicle sales for Volvo, this decision reflects the challenges the company is facing. In the past year, sales of the V90 plummeted to less than 400 units, primarily to fleet and business customers, and total vehicles sold also fell by 12 percent to 59,822 units. Additionally, the carmaker experienced a 27 percent drop in electric car sales compared to the previous year. To cut costs and improve cash flow, Volvo Cars is also laying off approximately 3,000 positions, primarily in Sweden, as part of its restructuring efforts to aim for a stronger, more resilient brand. This process includes focusing on producing models that align with market demand and investment in the fast-growing segment of electric vehicles. Volvo remains steadfast in its commitment to fully transitioning to electric cars, emphasizing the necessity for this shift in light of current automotive industry trends, characterized by overcapacity and fluctuating consumer interests. As the automotive landscape continues to evolve, Volvo's strategic direction emphasizes the importance of adapting to shifting market conditions.