Large and affordable: Volvo announces new volume model for Europe
For 2027, Volvo has announced a new, affordable high-volume electric model for Europe and two new models for China. However, despite a product offensive and full order books for the new EX60, noticeable losses in Q3 of 2026 have led to a strict cost-cutting drive - including job cuts.
Image: Volvo
Volvo plans to unveil a new global battery-electric volume model in 2027, tailored to the needs of the European market. It is set to be large and affordable, with deliveries expected to begin after the summer of 2027. This model marks the start of the company’s largest product offensive to date, featuring a total of 13 new vehicles by the end of 2030. In 2027 alone, three unveilings are planned – including the new model for Europe and two specific models for China.
An EX50 based on the SPA3 platform?
Media reports already refer to the model for Europe as the EX50, which could eventually replace the recently facelifted EX40. The EX40 is still based on the older CMA platform with a 400-volt architecture. The future production site for SPA3 volume models is expected to be the new electric car plant near Košice, Slovakia, which has an annual capacity of up to 250,000 units.
Technically, the new model is likely to be based on the newly developed SPA3 platform, which debuted in early 2026 with the EX60 and features an 800-volt system. This enables extremely short charging times and long ranges.
The SPA3 platform is also based on the Cell-to-Body principle, where the battery is integrated into the vehicle’s load-bearing structure. Volvo assembles the battery packs itself using uniformly sourced prismatic NMC cells. To safeguard the supply chain against disruptions, the manufacturer flexibly uses multiple suppliers. For customers, this results in no differences in energy density or product properties. While individual cells cannot be replaced due to their fixed bonding in the body, Volvo mitigates this with a ten-year battery warranty.
However, Volvo reports that the Cell-to-Body design is delaying the production ramp-up of the EX60. Demand remains strong: Volvo has already received over 50,000 European orders for the EX60. The model is considered a key pillar for future margins and supported a high electric vehicle share of 45 per cent in Volvo’s total European sales in the third quarter of 2026.
Cost-saving measures include 2,500 job cuts
Despite this, the company faces immense economic challenges. Thanks to intense competition, tariffs, the elimination of purchase incentives, and special effects related to CAFE emission credits in the USA, a drastic sales slump of nearly 50 per cent in China led to operating losses of 3.7 billion SEK (~€332.2 million; EBIT margin: -5.6 per cent) in the third quarter. As a result, management is implementing an additional cost-saving programme of 5 billion SEK (~€449 million euros) targeting indirect and variable costs.
This will result in the elimination of around 2,500 jobs worldwide – 2,000 of which are in Sweden – through the expiration of consultant contracts, natural attrition, and severance packages. To lower the break-even point and secure cash flow, Volvo is reducing its investments by approximately 30 per cent compared to 2024. Additionally, the carmaker is consolidating its production into five core plants globally, exploring joint multi-brand assembly with parent company Geely for the Chengdu and Gent sites, and advancing regionalised product adaptations in the US and China.