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Volvo Cancels US EX40 Electric SUV to Refresh the XC40 Hybrid Model

Volvo has canceled the entry-level EX40 electric SUV in the United States, opting instead to refresh the aging XC40 hybrid model. The new XC40 is scheduled to arrive at dealerships in early 2027 as a 2028 model year vehicle. The refresh includes a significant exterior makeover with updated Thor’s Hammer LED headlights, a new grille, and a redesigned hood and bumper. The interior features a larger 11.2-inch high-resolution touchscreen running Volvo's next-generation user interface, which includes the Google Gemini AI assistant. The vehicle also features upgraded trim materials, such as black ash wood and aluminum. Technologically, the XC40 will be equipped with a new sensor and software platform to improve safety features. These include a door opening alert for cyclists, expanded Pilot Assist with lane change support, and an optional 3D 360-degree camera. For the powertrain, the front-wheel-drive B4 version has been removed from the U.S. market, leaving the all-wheel-drive B5 mild hybrid system as the sole option. The B5 system produces 247 horsepower and is paired with a turbocharged 2.0-liter four-cylinder engine.

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