President Biden's new 100% tariff on Chinese-made electric vehicles aims to keep companies like BYD and Nio out of the U.S. market. But for now, the tariff is mostly just blocking China-built versions of the Volvo EX30.
After months of radio silence, Volvo confirmed yesterday that its new compact electric crossover—one with an enticing starting price around $35,000—won't debut in the U.S. until 2025. That's a year later than planned, but it gives Volvo time to set up production of the EX30 at its Ghent, Belgium plant instead of China. But building the car in China seemed key to its ultra-low price tag, so what it will cost here now is anyone's guess.
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China tariffs hit hard
Both the U.S. and the European Union are striking back at the threat of affordable Chinese EVs flooding their markets and undercutting local competitors. But most experts think it's only a matter of time before Western automakers compete with Chinese ones more directly, even in America.
If you're one of the people who plunked down a $500 refundable deposit on an EX30, what are you supposed to do? Well, Volvo is enticing some of those prospective owners to stay in the family.
In a note sent to reservation holders yesterday, Volvo apologized for the delays, reaffirmed its commitment to bringing the EV here eventually and offered a $2,500 "loyalty bonus" for buyers who want to get a different electric Volvo. If they want to get a plug-in hybrid or mild hybrid model instead, that bonus is $1,500 instead. The discounts apply to certified pre-owned cars as well.
I got this note yesterday too, as I was, until recently, an EX30 reservation holder myself. But a few weeks ago, I decided I wanted something a little bigger for my next car, and the delays and tariff uncertainty helped cement that decision in my mind. Still, I thought someone may get some value out of reading Volvo's note to customers, so here it is in full:
It was our hope to invite you to configure your new Volvo EX30 at this time. However, due to changes in the global automotive landscape, the introduction of the EX30 in the US will be delayed while we ramp up EX30 production at our plant in Ghent, Belgium. We will let you know the exact timing at a later date, but it will most likely be between early and late 2025.
We know this is not the news you were hoping to receive, and we understand your disappointment. We’re still committed to bringing EX30 to the US, it’s just taking longer than we expected to get it here.
If you need a car until we can get you behind the wheel of your EX30, we’d be happy to help you into another Volvo. Bring this exclusive personal identification number (PIN) to your retailer for a $2500 loyalty bonus that can be used to lease or purchase a new electric Volvo car.* If you are interested in one of our plug-in hybrid or mild hybrid models, you can use this PIN for a $1,500 loyalty bonus.* You can also use this PIN on a special short-term lease until your EX30 arrives. See additional important terms below.
We’ll be sure to keep you updated regarding the timeline for EX30 in the US. If you prefer to cancel your refundable pre-order deposit, your retailer will be able to assist you.
We appreciate your continued interest in EX30, and we are confident the wait will be worth it. Thank you for your patience and please reach out to your local retailer with any additional questions.
I will say that "between early and late 2025" cracked me up, but it does give Volvo a nice 12-month window to make this work.
Gallery: 2024 Volvo EX30
Besides that starting price, the EX30 seemed alluring for its rear-wheel-drive or all-wheel-drive configurations, Scandinavian-style minimalist interior, range of up to 275 miles and blistering performance in top trim. It was a wholly new kind of car from Volvo, from its small size down to its incredible speed. That's why it's already a top-selling vehicle in Europe. The China-built car could face intense tariffs in that market soon, too, until Belgian production kicks off.
So what's an EV-shopper to do now that the EX30 is off the table? Well, the $2,500 off another electric Volvo is a nice consolation prize. Though they aren't built in America, the electric XC40 and C40 Recharge do qualify for $7,500 tax credits when leased, so you're looking at up to $10,000 off those cars for a holdover lease. Neither EV is as brand new as the EX30 is—in fact, they're adapted from their gas-powered counterparts—but they are quite good. I tested an XC40 this winter and was surprised by how much I liked it, especially with the upgrades for 2024. It's also a bit bigger and more practical than the EX30.
The bonus here expires Jan. 2 of next year, so it may also apply to the new Volvo EX90. That's a much bigger and more expensive class of car, but I bet at least some reservation holders may try and go that route now.
You could also get your $500 refunded by Volvo and put it toward an EV from another brand. But act soon if you do, because we get the sense that 2024's ultra-cheap lease deals won't stick around forever.
And if you're an EX30 reservation holder and didn't get this note, talk to your Volvo dealer today.
Contact the author: patrick.george@insideevs.com
