Volvo Has a Plan to Make the EX60 Cheaper Than Rivals

Volvo Has a Plan to Make the EX60 Cheaper Than Rivals by leveraging shared technology with its parent company, Geely, and implementing leaner operational strategies. The upcoming Volvo EX60, positioned as the electric counterpart to the brand’s best-selling XC60, is designed to be Volvo’s most attainable electric SUV yet. Through a detailed cost-cutting plan outlined at a recent investor event, Volvo aims for sustainable profitability by combining a new SPA3 modular architecture, intensified hardware sourcing, and significant cost reductions, ensuring the EX60 can compete aggressively in the fiercely competitive midsize premium electric SUV segment.

Building the Next Best-Seller: Affordability is Key

The Volvo EX60 is poised to become one of the brand’s most crucial EVs, directly targeting the midsize premium electric SUV market where pricing is a critical differentiator. (Volvo Has a Plan to Make the EX60)

Electric Counterpart: The EX60 will serve as the electric version of the XC60, Volvo’s global best-seller.
Strategic Pricing: Volvo made it clear that affordability is part of the plan for the EX60 to compete effectively.
New Platform: It will be built on Volvo’s new SPA3 modular architecture, set to debut early next year.
Growth Driver: CEO Håkan Samuelsson emphasized that electrification remains “the main driver for growth,” with the Geely partnership being central to achieving cost-efficiency.

Cost-Cutting Through Geely Hardware Sharing and Leaner Operations

Volvo has outlined a detailed strategy for cost reduction, focusing on synergy with Geely and internal operational efficiency.

Hardware Synergies: CFO Fredrik Hansson stated that sustainable profitability (targeting an EBIT margin above 8 percent) will be achieved through “variable cost reductions supported by hardware synergies with Geely.” This includes intensified joint hardware sourcing.
Brand Identity: R&D chief Anders Bell confirmed that while sharing key components, Volvo will still retain its design and engineering DNA. Geely’s strength in China provides scale and efficiency opportunities.
Indirect Cost Reductions: Further indirect cost reductions and structurally lower investments are also part of the plan.
Job Cuts: A strict SEK 18 billion cost and cash action plan supports this transition, including 3,000 job cuts announced earlier this year.
Investment Cycle Completion: Volvo is completing a major investment cycle in technology and infrastructure, which is expected to reduce future capital spending.

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EX60 Market Positioning and Debut

Given its size and segment, the EX60 is expected to be strategically priced to compete with key rivals.

Current EV Lineup (US):
- EX30: Starts around $40,000
- EX40: $56,000
- EX90: $81,000
Estimated EX60 Price: The EX60 will likely be priced around the high $60,000 range, potentially crossing the $70,000 mark.
Key Rivals: This pricing would directly pit it against competitors like the BMW iX3 and Mercedes-Benz GLC Electric.
Debut and Production: The EX60 will officially debut on January 21, 2026, with production slated to begin in the first half of the year.

Final Thoughts

Volvo’s strategic plan to make the EX60 cheaper than rivals is a bold move designed to secure its position in the rapidly expanding EV market. By deeply integrating with Geely for hardware synergies and streamlining its own operations, Volvo aims to deliver a highly competitive electric SUV that doesn’t compromise on its core brand identity. The EX60’s success will be critical for Volvo’s long-term profitability and its ambition to lead in the premium EV segment, proving that luxury and attainability can coexist in the electric era.

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