Volvo’s Largest SUV Yet Could Take On The BMW X7

Volvo’s current lineup is already dominated by SUVs, but the luxury brand is still intent on launching new ones in every possible segment. It has plans to launch a new, sub-$40,000 electric crossover in 2027, after tariffs and battery recall issues led to the EX30’s premature demise. But on the other end of the price spectrum, Volvo also has plans to expand its SUV range. That model is set to be a full-size flagship SUV to slot in above the XC90, where it will directly compete with rivals like the BMW X7, upcoming Audi Q9, and Mercedes-Benz GLS-Class.

U.S.-Built SUV Will Push Volvo Further Upmarket

Plans for a new flagship SUV were discussed at a recent roundtable with Volvo executives, according to Car and Driver. The group included CEO Håkan Samuelsson, who hinted that the new model will be built in the United States. Samuelsson described it as a “family-oriented, bigger car” that would be built at the automaker’s facility in South Carolina.

The XC90 is already a large vehicle, but it’s officially a midsize model and lacks a truly spacious third row. That’s also the case for rivals like the Audi Q7. A larger, full-size model should provide adult-friendly seating in all three rows, while bringing the best of Volvo’s craftsmanship and technology.

According to Samuelsson, this larger SUV—which doesn’t have a name yet—will have multiple powertrain options, so hybrid and fully electric models sound likely. He also said the extended-range plug-in hybrid system in China’s XC70 would be a strong candidate for the U.S. market. This strategy would differ from the XC90 and EX90, whereby the former uses only gas engines and the latter is fully electric.

Pricing Expectations: Most Expensive Volvo Yet?

The current XC90 already tops out at over $75,000 when fully loaded, while full-size luxury SUVs like the BMW X7 start at $87,500. Therefore, we anticipate a starting price in the $80,000 range for the flagship Volvo, with top models easily surpassing $100,000. No other Volvo retails in the six-figure range in this market, so it would be new territory for the Swedish marque and a test of how much customers are willing to pay for a Volvo.

That said, the Volvo XC90 is the company’s most popular model in the U.S. this year, despite being far from the cheapest or smallest. This bodes well for a newer, better, and more capable flagship.

With plans to build a new hybrid in the U.S. by 2030, that’s our clearest indication yet of when the new SUV may arrive.

What It Means

Despite a new-car affordability crisis for lower-income Americans, the market for larger and more luxurious three-row SUVs shows no sign of slowing down. We already mentioned Audi’s new Q9, and we know BMW dealers have been pushing for a larger model above the X7. Together with Volvo’s challenger, that’s an entirely new crop of European luxury SUVs that would be breathing down the necks of the Cadillac Escalade and Lincoln Navigator, which for a long time have been the major players in the mega SUV segment. While those American nameplates have loyal followings, it looks likely that their dominance will be threatened in the second half of this decade.

View the full article