Volvo Cars is removing its more affordable EX30 SUV from its United States lineup, a decision it communicated to dealers late last week — according to a Monday report by The Drive.
A spokesperson for the company confirmed to the media outlet that the decision was based on “a thorough evaluation of our business and operational strategies and is a direct response to shifting market conditions and financial factors.”
All current orders will be fulfilled, with production for the US winding down after the Summer. Dealers have until March 20 to place orders for the model, they stated.
When asked whether the EX30 might return to the market, the spokesperson told The Drive, “we are always evaluating every aspect of our business, including our product offering, and will continue to monitor market conditions, in line with our standard practice.”
Late last month, the company unveiled an updated version of the EX30, including a new powertrain, Vehicle-to-Load (V2L) capability, and a redesigned UX.
The company confirmed that the model will continue to be sold globally, including in Canada and Mexico, despite the halt in the US.
Production
The Geely-backed, Swedish-headquartered automaker began production of the smaller SUV in late 2023, with the first customer deliveries taking place that November.
The model, which was initially produced in China, had its US launch delayed due to the 100% tariffs on Chinese EVs, imposed by the Biden administration in 2024.
By then, a spokesperson for the brand told Car and Driver that “changes in the global automotive landscape” provoked the halt, saying that EX30s bound for the US would eventually come from Volvo’s Belgium plant.
European production of the EX30 began in May 2025.
Despite having manufacturing facilities in North America, Volvo has not integrated production of the small SUV on the continent.
Volvo‘s South Carolina plant produces the fully electric EX90, for which the company reaffirmed on Monday that orders will remain in place, alongside the recently launched EX60.
Global trade developments have prompted the company to restructure its North American operations, affecting both the US and Canada.
Last year, it stopped taking orders for the large EX90 in Canada due to the country’s retaliatory tariffs on US exports.
With the Canada-China trade deal signed earlier this year — which allows for 49,000 Chinese EVs to enter the country annually — the automaker may now be looking to secure part of this quota to reintroduce the vehicle to the Canadian market, importing it from China instead.
Major Recall
Last month, Volvo said it was recalling 40,000 EX30 SUVs due to a potential battery fire risk, a month after the company first warned owners of the fully electric model about an overheating issue.
As a temporary solution, the company had told owners to limit battery charging to 70% and to “park outside and away from structures”, while it developed a permanent fix to the issue.
According to global data shared by Volvo, 98,065 EX30s were sold in 2024, and an additional 75,169 units were delivered last year.
Considering these figures, the recall is expected to affect about 23.4% of the total EX30s sold in the past two years — which indicates that nearly one in each five EX30s on the road could have the defect.
Of the vehicles recalled, 10,440 were found in the UK, 2,815 in Australia, 40 in the US, and 143 in Singapore.
Seven units were reported to have caught fire, but no injuries had been reported thus far, Volvo stated last month.
Volvo Financials
Volvo disclosed last month that the company swung to a net loss during the fourth quarter of 2025, as quarterly revenue halved year over year.
CEO Håkan Samuelsson, who replaced Jim Rowan last year, attributed the results to EU-US import tariffs, the removal of US EV incentives, and pricing pressure across the industry.
In April 2025, Volvo revealed a SEK 18 billion (by then, $1.9 billion) cost and cash action plan, which included cutting 3,000 positions and deepening the automaker’s ties to its parent company Geely.
For 2026, Volvo Cars aims to return to full-year volume growth and generate free cash flow “clearly better” than in 2025, when full-year free cash flow amounted to SEK 2.4 billion ($265 million).
