Volvo 2028 XC40 Refreshed; US EX40 Electric Variant Discontinued

Key points

• The 2028 XC40 and EX40 receive a major visual update, including a simplified front bumper, revised 'Thor's Hammer' headlights, and a cleaner overall profile.
• Interior updates include a new 11.2-inch screen (up from 9 inches) running Android Automotive with Google Gemini integration for voice-controlled vehicle settings and navigation.
• Safety features are enhanced with new high-resolution cameras, ultrasonic sensors, and radar, enabling a 3D 360-degree view and automated lane-change assistance via Pilot Assist.
• The US market will only receive the gas-powered XC40 B5, which features a 2.0-liter turbocharged engine producing 247 horsepower and 266 lb-ft of torque, achieving 27 mpg.
• The all-electric EX40 will continue to be sold internationally, with ranges of up to 575 km, but will be discontinued in the US due to tepid sales and foreign manufacturing constraints.

Background

The current-generation XC40, introduced in 2017, has been a top-selling model for Volvo globally. The electric variant, originally launched as the XC40 Recharge in 2019, was rebranded to the EX40 in 2024 to align with Volvo's new electric nomenclature. This 2028 refresh follows a minor 2022 update and marks a significant shift in Volvo's US strategy, where the smaller EX30 has also already been withdrawn.

How outlets are covering it

Engadget emphasizes the 'sad' loss of the US electric option, attributing it to poor sales and foreign production. Car and Driver characterizes the update as a 'subtle' nip-and-tuck, focusing on the design continuity. NetCarShow highlights the technical specs, including the new sensor suite and the specific range figures for the international EX40. Road & Track frames the decision within the broader context of slower-than-expected EV sales growth.

Why it matters

The decision to drop the EX40 in the US signals a strategic retreat from the compact electric SUV segment in a key market, prioritizing gas-powered sales over electrification goals. This move reflects the current challenges in EV adoption and Volvo's need to balance its global electric transition with local market realities.

What to watch

The 2028 XC40 is expected to reach US dealerships in early 2027, with pricing to be announced closer to launch. The EX40 will continue to be sold internationally, and Volvo has indicated that further driver assistance features may be added via over-the-air updates, though hands-off driving is not a near-term priority.