Volvo EX90’s Chances For Success Dealt Huge Blow With Latest Update

Key Takeaways

• Volvo has quietly increased EX90 pricing by $3,300, now starting at $79,995.
• The price increase may impact sales as demand for electric cars is already dwindling.
• Delayed features, coupled with the unexpected price hike, may drive potential customers away.

When pricing for the Volvo EX90 was revealed late last year, we were impressed by the excellent value for money, with a starting MSRP of $76,695. But it seems that has been short-lived, with Volvo quietly increasing the pricing of its electric flagship.

First spotted by Automotive News, the EX90 is now $3,300 dearer than before, with a base price of $79,995 (excluding Volvo’s $1,295 destination charge). That’s a considerable increase, and it seems to come with less value for the price. Interestingly, the automaker has made no mention of this via its official press channels. CarBuzz has contacted Volvo USA for comment and will update the article once we receive a reply.

This Won’t Help Volvo EV Sales

Keen pricing was surely one of the trump cards the EX90 had in its hand, so an additional $3,300 (regardless of model) won’t impress buyers. While an increase like this is unlikely to upset well-to-do customers, even the wealthy are feeling the pinch as a result of an economic downturn. Per AN, several Volvo dealers were unaware of the price increase, with many of the belief that it may harm sales.

Volvo spokesperson Sophia Durr said the price increase is related to “higher material costs” and noted that the adjustment was communicated to dealers and preorder clients on June 26. An email exchange seen by the publication, between an unnamed EX90 customer and Volvo USA’s head of customer care, Joe Origoni, reportedly said the price was increased on May 1. The customer says he noticed the change in pricing when he started configuring his EX90 Ultra seven-seater in July.

Volvo Dealers Don’t Sound Very Confident

Despite this, Durr said Volvo has not received any “firm orders or non-refundable deposits” since the price hike was implemented. The spokesperson said demand for the electric EX90 is strong and the $3,300 increase shouldn’t affect this. But some Volvo dealers don’t seem to agree with this – especially as demand for electric cars is dwindling. One unidentified Volvo dealer reportedly had the following to say: “It will make potential buyers stop and think, ‘Do I really want to do this at this time given the state of the economy, interest rates, and uncertainty about the [presidential] elections?’ I’m not in favor of anything that changes the likelihood of someone moving forward on [an order] when their decision is already very much up in the air.”

Delayed Features Not Sitting Well With Potential Customers

A bigger price tag isn’t the only issue facing the EX90. In June, the automaker told customers that the electric SUV would be delivered to customers without several key features. This includes crucial safety kit, like cross-traffic alert and curve speed assist, as well as other functions such as wireless Apple CarPlay and bidirectional charging.

Even though the automaker said these features would be made available at a later date, another unnamed retailer has said that 40% of his EX90 reservations had been canceled, and Volvo reportedly told its dealers that 5% of the 10,000+ preorders made in the United States had already been canceled due to software-related delays.

Things Aren’t Looking Good For The EX90

The unnamed dealer may have a point regarding early adopters. The unspecified reservation owner said these changes are rather disappointing. “Volvo is delaying a lot of features that make this car special without adequately adjusting the [price] of the car. Without these features, the car is an overpriced disappointment,” he said. Furthermore, the owner was put off by Volvo quietly increasing the price. Now, he may look to a rival brand – not a good result for the Swedish brand.

“We fell in love with the promise of the car and the promise is not anything like the reality. We don’t know how much more this whole situation will deteriorate by the time the cars are actually available.”

– Anonymous Volvo EX90 reservation holder

Source:
Automotive News