Volvo quietly increases the price of the EX90 and leaves out LiDAR and other technologies
Volvo justifies the price increase with higher material costs and says missing functions will be added later via software updates.
from Brad Anderson
August 10, 2024 at 19:09
- Volvo increases the price of the electric SUV EX90 after initial announcement.
- EX90 will launch with missing features that will be added via future updates.
- Some Volvo dealers believe the price increase will cause buyers to cancel their orders.
Volvo has not yet begun deliveries of the all-electric EX90 in the U.S., but has already raised the price to over $81,000 while announcing that local models will lack a number of safety features at launch.
When first announced, Volvo said the EX90 would be available in the U.S. starting at $77,990. However, the price has since been raised to $81,290, including a $1,295 delivery fee – an increase of $3,300. Joe Origoni, head of customer care at Volvo Car USA, explained that the price adjustment took effect on May 1.
Read: Volvo finally starts US production of EX90 electric SUV after buggy problems
Speaking to Auto News, Volvo spokeswoman Sophia Durr said the price increase was in response to higher material costs. Customers with pre-orders were reportedly notified of the change on June 26, and according to Durr, “no firm orders or non-refundable deposits” were placed before the price increase.
Missing features
It’s not just the price increase that could upset customers. The US-built EX90s will initially launch without LiDAR, will be missing two unspecified driver assistance programs, and will not initially support bidirectional charging.
Volvo says these features will be available at a later date through software updates. This suggests that EX90s will be built with LiDAR hardware, but it will not be enabled. Volvo has promised to add missing features during the “early ownership” phase.
Volvo CEO Jim Rowan spoke about the possibility of adding safety features wirelessly and said that customers would understand this move.
“The point of a software-defined vehicle with over-the-air update capabilities is to continuously update the software. We can do that,” he said. “I think customers who invest in high-technology products like the EX90 fully understand that and will benefit from it over time.”
Although the price increase is not exorbitant, at least one Volvo dealer expects it to lead to cancellations.
“Potential buyers are going to pause and think, ‘Do I really want to do this given the state of the economy, interest rates and the uncertainty about the (presidential) election?'” they said. “I’m not in favor of anything that changes the likelihood of someone going ahead with (an order) when their decision is already very uncertain.”
