Volvo Retires EX40 in U.S. as EX60 Becomes Entry-Level EV

Key points

• Volvo has removed the EX40 from its U.S. lineup, following the earlier discontinuation of the EC40 and EX30.
• The EX60 is now the de facto entry-level electric vehicle for Volvo in the United States.
• The EX40 continues to be sold in Europe with a facelift that includes a larger 11.2-inch infotainment screen and updated safety sensors.
• A new EX50 model, built on the SPA3 platform, is expected to arrive in the U.S. by the end of 2027 with a starting price below $50,000.
• The U.S. will receive a refreshed 2028 gas-powered XC40, which shares the new exterior and interior updates with the European EX40.

Background

Volvo’s U.S. electric lineup has been shrinking in recent years. The EX30 was discontinued earlier, and the EC40 was dropped after the 2025 model year. The EX40, originally launched as the XC40 Recharge in 2019, was Volvo’s first mass-produced electric model. The 2028 XC40 refresh, which includes a larger screen and updated safety features, was previously noted in our archive as a key update for the gas-powered model, while the EX40 was confirmed to be excluded from the U.S. market.

How outlets are covering it

InsideEVs emphasizes the strategic shift in Volvo’s U.S. EV lineup, noting that the EX60 is now the entry-level EV and that the new EX50 will replace the discontinued models. MotorWeek focuses on the 2028 gas-powered XC40, highlighting its simplified powertrain (only the AWD B5 is available) and the new 11.2-inch screen with Google Gemini integration. Road & Track frames the XC40 refresh in the context of slower-than-expected EV sales, suggesting that Volvo is prioritizing gas-powered models in the U.S. while continuing to update the EX40 for international markets. All three outlets agree on the core facts but differ in emphasis: InsideEVs focuses on the EV strategy, MotorWeek on the gas-powered refresh, and Road & Track on the broader market context.

Why it matters

Volvo’s decision to discontinue the EX40 in the U.S. signals a shift in its electric vehicle strategy, with the EX60 now serving as the entry-level EV. The introduction of the EX50, built on a more modern platform, is expected to offer better range, faster charging, and over-the-air updates. This move reflects Volvo’s response to slower EV sales and a focus on more competitive pricing and technology in the U.S. market.

What to watch

The EX50 is expected to arrive in the U.S. by the end of 2027, with a starting price below $50,000. The 2028 gas-powered XC40 is expected to arrive in the U.S. in early 2027, with pricing expected to be similar to the current mid-to-upper $40,000 range. Volvo will continue to sell the facelifted EX40 in Europe and other markets.