Volvo cancels 166 XC40 EV orders

A TSUNAMI of problems triggered by COVID-19 and the semiconductor shortage has derailed plans by Volvo to deliver to customers the current XC40 Recharge SUV, causing some brittle comments from prospective buyers.

The delays have also affected deliveries of the Polestar 2 – made in the same Luqiao, China factory as the XC40 Recharge – to Australian customers.

Volvo has cancelled 166 orders for the model year 2022 (MY22) XC40 electric SUV.

Volvo Car Australia’s director of public relations and corporate communications, Greg Bosnich, told GoAuto that the delay was caused by the end of production of the MY22 and the change to the updated – and more expensive – MY23. 

With the introduction of the new look MY23 vehicle there is a new single motor variant available, priced at $72,990 before on-road costs ($4000 lower than the MY22 twin motor) and with a range of 510km compared to 418km of the MY22 twin motor. The MY23 twin motor is now $79,490 + ORC (versus $76,990 for the MY22). 

Mr Bosnich said Volvo was sympathetic to affected customers but that they were unavoidable and that buyers with orders for the MY22 XC40 Recharge have been referred to their Volvo dealer, who outlined options.

“Those who have ordered a single-motor model can pay the extra sum – about $2800 – for the MY23 and be placed at the top of the order list,” he said.

“People who have ordered a twin-motor model also have a price increase and will also have priority in the MY23 order list.

“We will also return the deposit to those buyers who don’t want to move into the MY23 models.”

Mr Bosnich said the majority of people have chosen to pay the price rise.

He said the price increase was attributed to the cost of additional features in the MY23 and reflected price rises for production materials.

“The MY23 has a different look to the current car,” he said.

“Its new features are substantial and include wheels and trim changes, new paint colours, and the addition of items including a cabin air purifying system.”

Mr Bosnich said buyers choosing the MY23 model will be placed at the top of the queue with expectations that their cars will be on the June-July production line, with delivery in Australia planned for August-September.

Polestar is in a similar position. It has confirmed its MY22 has sold out and is expected to start delivery of its MY23 Polestar 2 in November.

Polestar Australia head of PR and communications, Laurissa Mirabelli, told GoAuto that the incoming model will have updated specifications on the current model.

There will also be price rises of between $3500 and $4000, pushing the Polestar 2 standard-range single motor variant to $63,900 (plus costs), the long-range single motor to $68,400, and the long-range dual-motor to $73,400.

This compares with rival Tesla’s Model 3 at $63,900 for the single-motor standard range, and $73,200 for the long-range dual motor.

Its highlights include a move to low-carbon aluminium in production that is claimed to save more than one-tonne of CO2 per car.

The company has already announced that in 2021, through use of renewable energy, it has reduced the greenhouse gas emissions per car by 6 per cent over 2020.