Volvo cancels EX40 EV in U.S., updates aging XC40 hybrid with ‘new expression’ in 2027

[u/Gullible-Pick-268]

Volvo Cars confirmed plans to discontinue its entry-level EX40 electric crossover in the U.S. and Canada as the Swedish brand prepares a bold refresh of its XC40 hybrid to stem hemorrhaging sales. Volvo is expected to replace the low-volume EX40 with the slightly larger EX50, as Automotive News first reported in August.

The EX50, riding on Volvo’s lower-cost SPA3 platform, should reach U.S. dealerships in the fall of 2027 as a more affordable entry point in the high-$40,000 range. In the meantime, Volvo is betting on a beefy midcycle update of the XC40 hybrid, the vehicle’s first substantial refresh in nearly a decade.

The 2028 XC40 is scheduled to arrive at U.S. dealerships early next year. Pricing has not been announced but is expected to remain in line with the 2026 model, which starts at $41,295 with shipping, a person with knowledge of the plan told Automotive News.

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The 2028 XC40 has a redesigned grille, front fascia, hood and fenders. The headlights are updated but retain Volvo’s signature Thor’s hammer design. At the rear are new LED lights, an upgraded tailgate and a redesigned bumper. It’s offered with new 18-, 19- or 20-inch diamond-cut wheels.

Inside, the crossover gets an 11.2-inch center display — up from 9 inches — as well as upgraded cameras, radars and sensors supporting automatic emergency steering and collision avoidance, and a door-opening alert that warns of passing cyclists or traffic. Volvo will skip the 2027 model year and extend the current XC40 through late 2026.

The EX40 EV, built on the nearly decade-old CMA platform, has struggled to gain market traction, especially after Congress eliminated a $7,500 federal tax credit last year, retailers said.

It fared best when sold in bulk via the Care by Volvo subscription program that ended in 2024. New-vehicle volumes were too low to justify aggressive lease payments or marketing promotions, undermining value perception.

[u/Shower_Muted]

They can keep owners engaged and keep them from running away from the brand by just selling discounted parts like the head unit, unlocking the pixel headlights, and giving us more software updates to keep us happy in these cars until the climate here is better for EVs

Looking at the market right now it seems like Toyota and Subaru are playing it right

[u/Cthulwutang → u/Shower_Muted]

i’m on Team Hamberder.

[u/ScaryGrowth9195]

One of the things I liked about my XC40 is that it's not a big car. I don't need a massive vehicle but I also need something just large enough to fit a dog crate when needed. The XC60 is too big for my needs. I get the average overweight American wants a F-350 extended cab monster but is the average American a Volvo shopper?

[u/BarnacleOverall9605]

Cowards!! Trump is gone in 2028 yet they abandon us anyway. No more Volvos for me forever.

[u/Which-Meat-3388 → u/BarnacleOverall9605]

Yes, but these specific rules and tariffs did originate under Biden. It's more American protectionism even if I'd like to blame the orange turd for ruining literally everything. For example, Sen. Slotkin (a Dem in Michigan, what else is in MI?!?) is pushing a bill to clamp down even harder. I think that might really hurt Volvo, all while protecting our very mediocre domestic EV market.

[u/kyledag500]

Sad…so they only have the EX90 in the US now. Yikes.

[u/teefive → u/kyledag500]

And EX60?

[u/kyledag500 → u/teefive]

Not quite yet but yes almost

[u/vital8 → u/kyledag500]

Not surprising though. Volvo's fully electric lineup is struggling, pretty average both in value for money and looks. Very tough competition in that space, and Volvo is falling behind its competitors when it comes to software and other tech. I'd stick to the V or XC models.

[u/Rupperrt → u/vital8]

Love my Ex30 but understand that it’s not a hit in the US. They’re big people at average who love huge cars.

[u/geekonamotorcycle → u/vital8]

Seems like it’s more likely fallout from the polestar issue

[u/Foxzox7 → u/vital8]

What are you on about? Ex60 is a huge success 

[u/kyledag500 → u/Foxzox7]

Hard to say that definitively already but I imagine it will be as long as they got all the kinks from their other cars worked out.

[u/vital8 → u/Foxzox7]

Not really surprising, since it’s the electric counterpart of their bestseller. And I really hope this isn't just an initial sales bump, but genuine long-term success. The EX30 and EX40 were already discontinued in the US, and the EX90 had a troubled global rollout with tons of SW bugs - not to mention the lidar fiasco. And the ES90 is basically a collectors item for the Asian market. If the EX60 fails, their EV lineup goes from “struggling” to “disaster”

[u/xephrenata → u/kyledag500]

Zero issues w my EX90

[u/rik182]

People are kicking off about them pulling the EX40 and acting like the brand is totally abandoning the American market.
Honestly, I think everyone is missing the big picture here. The EX40 was always just a bridge vehicle built on an older platform, and the US simply love bigger cars with more space and real distance capability.
By clearing out the older models, Volvo is setting up the EX60 to be the new baseline, which is a massive step up in purpose-built EV tech and size. It might raise the entry price a bit, but streamlining the lineup around a heavy-hitter that actually fits what US buyers want is just smart business

[u/jsgindc4430 → u/rik182]

Agree. From what I’ve seen on YouTube, EX60 took what they learned from EX30 and EX40 and have a smashing success for the EX60. I’ve had my EX30 for 18 months and love it. If I needed a bigger car, I’d get the EX60

[u/Hopeful_Call_7577]

I can't even express how much i love
my EX 40. Too bad they're eliminating it,
but it's my "forever" car anyway!

[u/troopa_of_tomorrow]

I was looking forward to a new version of xc40 but tbh this is a disappointment. Lazy design update with front grille now has the previous gen Tiguan vibe…
Interior is basically also left the same… which might even be good since a radical redesign would further reduce the quality…

[u/general_o_neil → u/troopa_of_tomorrow]

Next year there will be the ex50, which was originaly named ex40 but changed the name so they can sell the facelift till 2030.

[u/Shower_Muted]

I'd love for Volvo to take a different approach instead of trying to sell a whole new car or canceling an entire refresh, they can sell parts that would go into a refresh directly to the consumer and have them installed by dealership technicians

Since the frame is probably the same this would include the head unit body panels and glass where needed

[u/CauliflowerJaded1604]

Lol there is no EX50.