Volvo Kills Off EX40 EV in US as New EX50 SUV Arrives in 2027
Volvo is reshaping its electric vehicle strategy in North America by officially deciding to phase out the EX40 crossover after the 2027 model year. The Swedish automaker confirmed that while an updated version of the compact electric crossover will remain available in European markets, North American showrooms will lose the model entirely as production sunsets.
The departure of the EX40 follows similar decisions regarding Volvo’s smaller electric offerings in the region. Earlier market adjustments saw the subcompact EX30 and fastback EC40 quietly removed from North American order books. Originally launched in 2019 under the XC40 Recharge moniker before being rebranded, the EX40 served as an accessible starting point for buyers.
This strategic retreat leaves Volvo with a temporary gap in its affordable electric lineup across the United States and Canada. With smaller, imported models facing regulatory and economic headwinds, the company is recalibrating its portfolio around next-generation vehicle architectures designed to offer superior range, faster charging, and increased localized manufacturing appeal for North American consumers.
The EX40 Retires as Price Baseline Shifts Upward
With the EX40 retiring alongside the EX30 and EC40, the incoming midsize EX60 will temporarily serve as Volvo’s entry-level electric offering. The 2026 EX40 carried a starting retail price of $56,545, delivering an EPA-estimated driving range of up to 296 miles. In contrast, the upcoming 2027 EX60 P6 Plus begins at $59,795 including destination fees.
While the price delta between the outgoing EX40 and the new EX60 is under $4,000, raising the brand's EV floor to nearly $60,000 places Volvo out of reach for many prospective buyers. The price surge reflects broader auto industry trends where vehicle manufacturers struggle to maintain low pricing on imported electric crossovers without federal subsidy support.
Industry filings indicate that European drivers will continue to receive updated EX40 models, highlighting a growing divergence in regional product portfolios. European infrastructure and tariff environments allow Volvo to sell smaller battery-electric crossovers profitably, whereas North American tax rule changes and policy shifts have forced a pivot toward larger, higher-margin SUV segments.
Next-Generation SPA3 Platform Takes Center Stage
Anchor of Volvo’s revised electric blueprint is the new SPA3 platform, a dedicated modular architecture debuting on the EX60. Described in technical disclosures as a foundational leap forward, SPA3 replaces legacy combustion-adapted chassis with a bespoke electric vehicle foundation. The architecture focuses on structural battery integration, reduced manufacturing complexity, and drastically improved thermal management systems.
The SPA3 platform introduces a modern 800-volt electrical system capable of rapid energy replenishment. Under optimal conditions, the system can add approximately 165 miles of driving range in just 10 minutes. Furthermore, the EX60 becomes Volvo’s first production model featuring a factory-integrated North American Charging Standard port, granting direct access to over 29,000 Superchargers.
In terms of exterior dimensions, the EX60 targets the core midsize crossover segment. Measuring 189.1 inches long, 81.4 inches wide, and 64.4 inches high with a 116.9-inch wheelbase, the EX60 closely mirrors the footprint of market leaders like the Tesla Model Y. This expanded footprint addresses persistent customer requests for expanded rear cabin space and cargo volume.
Enter the EX50: A Sub-$50,000 Replacement Arrives in 2027
Volvo is not abandoning accessible electric vehicles entirely. Regulatory disclosures reveal that the automaker filed trademark applications with the European Union Intellectual Property Office for the "EX50" nameplate in July 2026. Analyst reports confirm that this nameplate belongs to an all-new electric crossover scheduled to launch in North America by late 2027.
Positioned directly below the EX60, the forthcoming EX50 will ride on the same advanced SPA3 modular platform. Designed specifically to fill the entry-level void, industry reports indicate the new crossover will carry a targeted starting price under $50,000. This lower price point will re-establish a more competitive baseline for Volvo’s fully electric lineup.
Preliminary details outline a vehicle that is significantly taller and longer than the departing EX40. By utilizing the SPA3 platform, the EX50 will offer superior interior packaging, extended driving range, and faster DC charging speeds compared to the model it replaces. It promises a purpose-built EV experience rather than a converted internal combustion architecture.
Strategic Realignment in a Changing EV Market
Volvo’s product roadmap modifications reflect wider geopolitical and financial challenges facing international carmakers in North America. Recent policy changes, including the sunsetting of the $7,500 federal EV tax credit and elevated import tariffs, have squeezed profitability on entry-level models. Consequently, Volvo previously dialed back its ambitious target of becoming an all-electric automaker by 2030.
The reality of a $50,000 entry point underscores how rapidly economic factors have shifted expectations. When Volvo announced the subcompact EX30, executives originally touted a $35,000 price target that ultimately failed to materialize for U.S. customers. The upcoming EX50 will cost roughly $15,000 more than that original promise, highlighting persistent inflationary cost pressures across the battery supply chain.
Despite market friction, Volvo’s commitment to the SPA3 architecture demonstrates a clear vision for sustainable long-term EV growth. By phasing out aging legacy platforms like the EX40 and preparing a localized, tech-forward lineup led by the EX60 and upcoming EX50, the automaker aims to secure a strong footprint in the luxury electric segment through 2027 and beyond.
