Volvo was confident that the upcoming 2024 EX90 SUV was going to be a big value play in its segment with the model starting at $76,695. This price was supposed to pair well with its advanced EV technology and sleek exterior styling to create a potent contender in the luxury EV SUV segment.
However, the company has now been forced to face the reality of the changing global economy and rising material costs have forced the company to abandon this plan and raise the price by $3,300 in a huge blow that could dent the model’s success in certain markets including the U.S.
Materials put the squeeze on EX90
Volvo’s price increase came with little fanfare, but it surprised many dealerships who claim that the $3,300 bump to a revised total of $79,995 will hurt sales and that they also didn’t receive official notice from Volvo themselves with this surprise announcement potentially forcing some dealerships to quickly alter their marketing and sales strategies for the model as it prepares to finally enter the marketplace after a brief delay due to lingering electronic issues.
Volvo spokesperson Sophia Durr said that the price increase was due to “higher material costs” and took a swipe at dealerships by saying that the price increase was communicated to them and pre-order clients on June 26th. Durr also said that the company has received strong demand for the EX90 and that the price increase will not cause these numbers to dip.
Dealerships disagree
Durr’s words were not well received by dealerships and many of them openly disagreed with her statement. Some of them said that the price increase comes as demand for electric vehicles as a whole is beginning to slow down and it would represent an unwelcome one-two punch for dealerships with potential EX90 buyers bailing on the model to move elsewhere which would cost them precious sales.
This follows on other unwelcome news with the EX90 not only suffering a delay but also recent confirmation from Volvo that the model will arrive in showrooms with several key features missing including critical safety features and even the wireless Apple CarPlay feature. The omission of these features out the gate (Volvo says that they will be added in later OTA updates) has not sat well with customers with one dealer telling the folks at Carbuzz.com that roughly 40% of his pre-orders for the EX90 had been canceled which is a big blow to long-term profits. These cancellations also represent people moving to other brands as their patience with Volo wanes and the EX90 comes up short against more established models which have more feature content for customers to experience the moment that they purchase a vehicle.
When will the EX90 be coming?
Despite all the delays, Volvo is still moving full steam ahead with the EX90’s launch. The model is still slated to arrive in early 2024 and pre-ordering for the model has been open for some time now. It will be interesting to see how the EX90 does in the long run, especially when you consider that it will be arriving at an early disadvantage due to the price increase as well as some of the features that it will be missing when it makes its way to dealer lots.
Volvo hasn’t stated if it has plans to adjust prices or give the first wave of owners credits to make up for the missing content. If it does choose to eventually give credits, it would follow a similar action by General Motors when COVID-related chip shortages forced them to give credits to consumers to make up for the initial lack of a heated steering wheel and other features.
Carl Malek has been an automotive journalist for over 10 years. First starting out as a freelance photographer before making the transition to writing during college, his work has appeared on numerous automotive forums as well as websites such as Autoshopper.com.
Carl is also a big fan of British vehicles with the bulk of his devotion going to the Morgan Motor Company as well as offerings from Lotus, MG, and Caterham. When he is not writing about automobiles, Carl enjoys spending time with his family and friends in the Metro Detroit area, as well as spending time with his adorable pets.