--- title: "Volvo Is in Trouble and Its Solutions Are Two Years Away" date: "2025-08-07" modified: "2025-08-07" authors: - name: "Adam Ismail" job_title: "Senior Editor" link: "https://www.thedrive.com/authors/adam-ismail" url: "https://www.thedrive.com/news/volvo-is-in-trouble-and-its-solutions-are-two-years-away" categories: - "News" - "News by Brand" - "Volvo News" tags: - "luxury" - "suv/crossover" - "Volvo" - "XC60" --- # Volvo Is in Trouble and Its Solutions Are Two Years Away ![The XC60 overtakes the 240 to become Volvo’s best-seller]() *The Volvo XC60 recently overtook the 240 to become the brand's best-seller of all time. \Jonas Ingman/Volvo\* When [Volvo]() reflects on 2025 down the line, history will either define it as a rebuilding year, or the year things definitively took a turn for the worse. After losing over $1 billion globally through the second quarter of 2025, the Swedish automaker reported a 14% drop in global sales for this past July. It comes on the heels of 12% year-over-year drops for June and May each, and an overall 10% slide over the first seven months of this year, cumulatively. You don't have to be an investor to recognize that the numbers are moving in the wrong direction. Volvo says it's taken steps to mitigate the blow, but they're not roundly encouraging. On the one hand, the company cut 3,000 jobs globally. On the other, it's finally moved to build its XC60 SUV—its best-selling model in North America—at its Ridgeville, South Carolina facility [to avoid tariffs](). The only problem is, XC60s won't begin rolling off the production line there until 2027. Provided all goes according to plan, it'll be joined by the XC90 a year later. We'll be in a presidential election and subsequently have a new administration by the time this all takes place. Meanwhile, Volvo's electric flagship—the EX90—hasn't launched in the best shape, to put it mildly. *[Consumer Reports]()* published an alarming list of issues it encountered with its SUV, which starts at $81,290. From third-row seats that have trouble folding due to overheating motors, to blind spot warning alarms that go off when the car is stationary, to the audio system randomly going silent, their experience with the EX90 didn't exactly prop up Volvo's reputation for quality. ![Volvo EX90]() *The interior of the Volvo EX90. *Volvo** On the other end of the spectrum, the plucky [EX30]()—which has [suffered glitches of its own]()—finally hit dealers earlier this year for [about $10K more than initially advertised](). The government's tariff frenzy obviously isn't Volvo's fault, but it is yet another frustration in a time of many for the company. It may have to adjust its mix of hybrids versus fully electric models, as global sales of the latter specifically are down 23% from January through July. Plug-in hybrids are off less than one percentage point, while ICE cars and mild hybrids are 7% down compared to 2024's first seven months. Whatever Volvo introduces in the future to stem this tide, it won't look like what the brand has shown us before. The [ES90's raised ride height](), despite being a sedan, is no accident. Volvo is an SUV-first brand now and, in [the words of its recently departed CEO](), it's more likely to tweak proven models like the XC60 with unique trim packages than introduce a wholly new, yet niche wagon. If that is what Volvo is now, fair enough. But it still needs to execute those products properly—and that includes their software. *Got a tip? Email us at tips@thedrive.com*[]() ## Author Adam is a Senior Editor at The Drive, concentrating on curating and developing the site's slate of daily journalism, from initial pitch to final copy edit. When he's not at his desk researching leads and working with writers, he's testing vehicles or reviewing racing games, new and old. He joined The Drive in 2023, following seven years of covering consumer technology and cars. A car lover and gamer since his earliest memories, Adam came to know the automotive world through video games. First it was Daytona USA, Sega Rally, and Ridge Racer; then came Need For Speed, which inspired an encyclopedic knowledge of '90s supercars, and, of course, Gran Turismo. If not for them, he'd assuredly be doing something else right now. Adam is based in the suburbs outside Philly, where there are ample roads for his hot hatch to stretch its legs. In his car, he's probably listening to indie rock, drum and bass, or Yankees baseball. ### Author social links [Bluesky]() [Instagram]() [LinkedIn]()