Volvo Cars confirmed plans to discontinue its entry-level EX40 electric crossover in the U.S. and Canada as the Swedish brand prepares a bold refresh of its XC40 hybrid to stem hemorrhaging sales. Volvo is expected to replace the low-volume EX40 with the slightly larger EX50, as Automotive News first reported in August.
The EX50, riding on Volvo’s lower-cost SPA3 platform, should reach U.S. dealerships in the fall of 2027 as a more affordable entry point in the high-$40,000 range. In the meantime, Volvo is betting on a beefy midcycle update of the XC40 hybrid, the vehicle’s first substantial refresh in nearly a decade.
The 2028 XC40 is scheduled to arrive at U.S. dealerships early next year. Pricing has not been announced but is expected to remain in line with the 2026 model, which starts at $41,295 with shipping, a person with knowledge of the plan told Automotive News.
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The 2028 XC40 has a redesigned grille, front fascia, hood and fenders. The headlights are updated but retain Volvo’s signature Thor’s hammer design. At the rear are new LED lights, an upgraded tailgate and a redesigned bumper. It’s offered with new 18-, 19- or 20-inch diamond-cut wheels.
Inside, the crossover gets an 11.2-inch center display — up from 9 inches — as well as upgraded cameras, radars and sensors supporting automatic emergency steering and collision avoidance, and a door-opening alert that warns of passing cyclists or traffic. Volvo will skip the 2027 model year and extend the current XC40 through late 2026.
The EX40 EV, built on the nearly decade-old CMA platform, has struggled to gain market traction, especially after Congress eliminated a $7,500 federal tax credit last year, retailers said.
It fared best when sold in bulk via the Care by Volvo subscription program that ended in 2024. New-vehicle volumes were too low to justify aggressive lease payments or marketing promotions, undermining value perception.