- Volvo increases price of EX90 electric SUV after initial announcement.
- EX90 will launch with missing features, to be added via future updates.
- Some Volvo retailers believe the price hike will prompt buyers to cancel orders.
Volvo has yet to start deliveries of the all-electric EX90 in the U.S., and already, it has jacked up prices to more than $81,000, all while revealing that local models will lack a slew of safety features at launch.
When first announced, Volvo said the EX90 would start at $77,990 in the U.S. However, the price has since been raised to $81,290, including a $1,295 destination charge – an increase of $3,300. Joe Origoni, Volvo Car USA’s head of customer care, stated that the price adjustment was implemented on May 1.
Read: Volvo Finally Begins US Production Of EX90 Electric SUV After Buggy Problems
Speaking with Auto News, Volvo spokesperson Sophia Durr says the price was raised in response to higher material costs. Customers with preorders were reportedly informed of the change on June 26, and according to Durr, “no firm orders or non-refundable deposits” were placed before the price hike.
Missing features
It’s not just a price increase that may upset customers. U.S.-built EX90s will initially launch without a LiDAR, lack two unspecified driver-assistance programs, and will not initially support bidirectional charging.
Volvo says these features will arrive at a later date through software updates. This suggests that EX90s will be built with LiDAR hardware, but it won’t be enabled. Volvo has promised to add missing features during the “early ownership” period.
Speaking about the ability to add safety features over-the-air, Volvo chief executive Jim Rowan said customers understand the move.
“The whole point of a software-defined vehicle that has over-the-air update capabilities is to continually upgrade that software. We can do that,” he said. “I think that customers who invest in advanced technology products like the EX90 understand this fully, and they will reap the benefits over time.”
While the price hike isn’t exorbitant, at least one Volvo retailer expects it to trigger cancellations.
“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,'” they said. “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.”
