Volvo isn’t saying exactly what the cars are yet. That’s deliberate. They want you waiting. Two new models drop later this year. “Very exciting,” the bosses say. Vague. But the clues point to familiar shapes getting major mechanical upgrades. We are likely looking at facelifts for existing SUVs, specifically the aging XC40.
What defines Volvo’s Gen 2 hybrid system?
Here is the meat of the update. It is not just better styling. Under the metal sits a new powertrain architecture. Volvo calls it ‘Gen 2’ plug-in hybrid.
Think bigger batteries. Think less petrol engine dependency.
“It feels like you’re driving an electric vehicle in the vast majority of use cases,” says Anders Bell, Volvo’s Chief Engineering and Technology Officer.
Bell argues the system preserves power for overtaking. Always ready. He emphasizes drivability as the core benefit. If you hate range anxiety but love silence, this might be the compromise you did not know you wanted. It mirrors the ‘extended-range’ logic seen in the Chinese-market Volvo XC90 (often confused with the older XC70 naming convention). That model hits 130 miles on electricity alone. Expect these new twins to come close.
Chief commercial officer Erik Severinson confirmed the strategy during Q2 results. No specifics. Just a promise that their dominance in plug-in hybrid market share needs protecting.
“Why are we so good at this?” he effectively asks. Because they have been refining the tech on the XC60 and XC980 for years. These two upcoming cars are the next evolution of that success.
Is Volvo making an estate car in 2024?
Stop. Not yet.
There is rumor mill noise about a Volvo station wagon returning. Fans dream of a modern version of the classic 240 or the V-series. When pressed on whether an estate was coming, CEO Håkan Samuelsson dodged slightly. “Interesting opportunity.” Not “Yes.”
It is not one of the two cars launching this year.
But do not give up hope. The underlying platform—SPA3—flexes. It supports high roofs, low cars, small and big. Severinson hinted that if you want a big low car (i.e., a wagon), the architecture allows it. The door is cracked open. Just not swung wide yet.
Where are the cars built and who buys them?
Volvo is splitting its strategy by continent. China gets tailored models, developed with parent company Geely. The US gets specific hardware, likely big SUVs because that is what Americans buy.
Two big projects are happening on American soil:
- XC60 production moves to Ridgeville, South Carolina.
- A new, larger hybrid SUV for the US market (and potentially Europe) arrives before the decade ends.
Samuelsson notes these US-tailored cars offer a multi-fuel approach. Probably not just EVs. The market still craves flexibility.
The product slate for 2024 is the tip of an iceberg. On September 17, Volvo promises a full outline of what it calls the “most ambitious product plan in our history.” That suggests volume. Variety.
If you cannot wait for Gen 2, the current generation is already available. Used XC40s start around £10,0Box. Cheap for the brand. Reliable. Boring? Maybe. But effective.
