The Evolving Landscape of Volvo's Product Offerings
The Retreat of Volvo's Flagship Wagon
Volvo is discontinuing the manufacturing of its V90, its most spacious and luxurious wagon, for a majority of international markets. This development, reported by Autocar, signifies that Volvo, a company that built its esteemed reputation on iconic wagon models such as the 240, 740, and 850, will soon offer only a single wagon variant in its portfolio.
Strategic Adjustments and Market Realities
In a formal communication to Autocar, Volvo articulated that the decision to eliminate the V90 aligns with its \"global cycle\" strategy, noting the concurrent phase-out of the related S90 sedan. The S90 sedan's presence in the U.S. market concluded with the 2025 model year, a direct consequence of new tariffs imposed by the Trump Administration, having already been withdrawn from other markets in the preceding year.
Navigating Towards a Crossover-Dominant Future
Volvo, once renowned for its versatile wagons, has increasingly pivoted towards sport utility vehicles (SUVs), aiming to adapt to prevailing market demands. In its final years in the U.S., the V90 was exclusively available as the Cross Country, catering to adventurous lifestyles. Recently, Volvo has demonstrated a pragmatic approach, seemingly detached from its historical affinity for wagons.
When questioned last year by Autocar about the possibility of Volvo entirely abandoning wagons, former CEO Jim Rowan acknowledged the market shift, stating, \"Yeah, because I think it's changed, right? SUVs have changed with ride height.\" Rowan further suggested that existing Volvo models, such as the XC60 crossover, could effectively assume the role of wagons by introducing more premium trim levels.
The electric Volvo ES90, unveiled earlier this year, is poised to succeed the S90, offering a larger, non-SUV alternative. Its elevated ride height is designed to appeal to crossover enthusiasts, while its hatchback configuration provides similar practicality to a wagon, as previously articulated by Rowan. Although Rowan departed as Volvo's CEO in March, his successor, Håkan Samuelsson, has not signaled any significant deviations from the company's established product strategy.
Consolidation of Vehicle Choices
The sustained presence of Volvo wagons in the market is contingent upon consumer interest. Autocar reported that both the V90 and V60 models were initially removed from Volvo's U.K. lineup in 2023 but were reintroduced in July 2024 due to renewed demand. The V60 is set to remain available in the U.K. for the foreseeable future, while the V60 Cross Country will continue as Volvo's sole non-SUV offering in the U.S. until the arrival of the ES90.
The undeniable dominance of SUVs in the market is evident. Earlier this year, the XC60 became Volvo's all-time best-selling model, surpassing the 240 with over 2.7 million units sold across two generations. In the U.S., wagon sales have been marginal for a considerable period. However, Volvo's decision to completely halt V90 production without a direct successor indicates a diminishing interest in wagons even in European markets, which traditionally showed greater favor for this body style.