The EX60 will use a new electric architecture that should be 18% less expensive to manufacture.
Range and charging speeds are also expected to be improved over the EX90 and EX30.
Volvo believes it can stand out on the market by launching new electric models as its competitors turn away from EVs.
The upcoming Volvo EX60 electric compact crossover will be priced like a plug-in hybrid model, according to the Swedish automaker.
Pricing remains a key obstacle for EV adoption, as electric models are still significantly more expensive on average than comparable vehicles powered by gasoline or hybrid powertrains.
To counteract this, Volvo aims for price parity between its newly developed EX60 and its PHEVs, most likely the XC60 T8 PHEV, which is priced between $65,000 and $92,500 in Canada at the moment.
Allowing Volvo to do this and keep turning a profit is a new architecture that will be 18% cheaper to manufacture than its current EV platforms.
In fact, Volvo expects the EX60 to be more profitable than its current electric models despite a lower price.
Named SPA3, this new vehicle architecture will feature a highly modular design that will allow economies of scale as more and more models are added to the lineup.
For example, all vehicles built on this platform could share the same batteries, computers, and megacastings, significantly reducing production complexities, especially for vehicles built on the same assembly line.
In the case of the EX60, the battery will also be part of the vehicle’s structure, which could help reduce costs by 25% while also improving interior space and reducing total weight.
In addition to being more affordable, the new electrical architecture is also said to be 20% more energy dense than current Volvo batteries, which should give the EX60 more range and 15% faster charging speeds, along with 35% more power.
Volvo Chief Commercial Officer, Erik Severinson, said in a press conference yesterday that “With the EX60, you will have a car where you will need to go to the toilet long before the battery runs out, and when you’re back from the toilet, the car is charged.” This remains to be seen, but it sounds promising compared to current EV technology.
The automaker has big hopes for the EX60, which will be its first entry in the most popular EV market segment, that of compact crossovers like the Tesla Model Y.
With the addition of this model, Volvo expects to cover about 75% of the entire EV market, as opposed to only about 25% currently.
As more and more automakers shy away from electric vehicles in the face of dropping customer demand and toned-down environmental regulations, Volvo believes that continuing to expand its EV lineup will help it stand out and become a more important player in the global automotive industry.
Source: Automotive News
