Volvo has an excellent reputation for safety, and that has long attracted families to the brand. But as those families have grown to the point that the mid-size XC90 has become too small, they have been forced to look to other brands to satisfy their needs for bigger SUVs, like BMW with its X7 and Mercedes-Benz with its GLS. But they may not need to for much longer, reports Automotive News. Volvo CEO Hakan Samuelsson told AN that demand for full-size three-row SUVs is growing in the U.S. and in China, and the Swedish automaker is again considering a foray into the segment. "Bigger SUVs — that is something we're looking into," he said, adding that the company has not yet greenlit such a project. But approval could come soon.
Volvo's Full-Size SUV Could Be Built in South Carolina
Volvo
Last year, Volvo announced that it would build an all-new plug-in hybrid vehicle at its South Carolina factory, and although Samuelsson would not confirm whether the PHEV will be a three-row SUV, he did say it would be "very attractive for U.S. customers," adding the hybrid is "maybe a bigger one." It's difficult to be sure exactly what Volvo is working on because the new PHEV is also meant to be sold in Europe, where larger full-size SUVs do not sell as strongly, but the vehicle is predicted to enter production in South Carolina in October 2028 with an extended-range hybrid powertrain capable of roughly 100 miles of electric-only range.
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Potential underpinnings are also unclear, but with Volvo's ties to Chinese parent company Geely, which also owns the Zeekr premium EV brand, it's possible that last year's impressive Zeekr 9X full-size three-row SUV could share components or tech. In 2020, Volvo had reportedly planned a new SUV called the XC100, and as something that might sit above the XC90, Volvo's new PHEV could well adopt the unused name.
Volvo Customers Desperately Want a Bigger SUV
Volvo
If Volvo is ready to introduce a larger SUV, it would be welcomed by dealers, who would still want the XC90 to stick around. One anonymous dealer told AN, "The XC90 doesn't allow a family to grow. We're trying to be a family-oriented brand, and we don't have a move-up vehicle." Similarly, another dealer executive said that as families grow, "they need something bigger than the XC90." The data support these assertions, with Edmunds saying that 11 percent of customers trading in an XC90 over the last two years moved to full-size luxury or mainstream SUVs, and that this is the highest defection rate to these segments recorded by the XC90 in its 20+ years on sale. With a full-size SUV in its portfolio, Volvo would be able to not only better retain existing customers but also attract new ones, with a bigger SUV serving as a halo for the brand.
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