Volvo’s EX60 electric SUV is facing production challenges that could limit its availability in the United States and delay the Swedish automaker’s plans to expand its electric vehicle sales. Despite targeting 7,000 EX60 sales in the U.S., Volvo has reportedly struggled to ramp up manufacturing because of problems involving its new production technology. The delays could leave American dealerships with limited inventory as the company prioritizes deliveries to Europe.
Volvo EX60 Production Falls Short of Targets
The EX60 is one of Volvo’s most important electric vehicle launches, bringing an all-electric alternative to the XC60, the company’s best-selling model both annually and of all time. Revealed in January, the electric crossover is positioned to compete with models such as the BMW iX3 and Mercedes-Benz GLC Electric.
Production began in April 2026, with Volvo CEO Håkan Samuelsson emphasizing the importance of a controlled manufacturing ramp-up. “We are now focused on a steady ramp-up of high-quality EX60 production, making sure this game-changing car will be a profitable growth driver in the coming years,” he said at the time.
Volvo opened reservation bookings in the United States in May, and the first batches of orders have now started arriving. However, a report from Automotive News has raised concerns among dealers about the vehicle’s availability in 2027.
Volvo had aimed to produce 2,000 EX60s per week, but manufacturing problems have reportedly reduced output to just one-tenth of that target. The shortfall threatens the company’s goal of selling 7,000 EX60s in the U.S., a substantial portion of its annual electric vehicle sales.
Megacasting Technology Creates Manufacturing Challenges
The production difficulties reportedly stem from megacasting, a manufacturing process used for the first time in a Volvo vehicle with the EX60. The electric crossover is also the company’s first model built around a cell-to-body platform.
Although the technologies represent major innovations for Volvo, introducing them has complicated the production ramp-up. GlobalData estimates indicate that just 500 EX60s were sold in July, followed by only 250 in August.
Volvo spokesperson Jacquelyn Johnson acknowledged the challenges associated with introducing the new manufacturing methods. She said megacasting, cell-to-body construction and other innovations involve industry-first, state-of-the-art concepts without established blueprints to follow, meaning the ramp-up is taking longer than initially planned.
The difficulties come as Volvo seeks to increase its electric vehicle sales and establish the EX60 as a significant contributor to the company’s future growth.
U.S. Deliveries Face Delays as Volvo Prioritizes Europe
Volvo is working to reach full production capacity as quickly as possible, but limited supply is creating challenges for the company’s sales plans. The shortage also means fewer vehicles are available to dealers, reducing their ability to meet customer demand.
The situation is further complicated by Volvo’s decision to prioritize deliveries to European markets. As a result, U.S. allocations are expected to remain limited, leaving some dealerships with little inventory or no EX60s in stock.
Production and supply conditions have been estimated to normalize by the second half of the year. Until then, the limited availability could push potential EX60 buyers toward competing electric vehicles, giving rival automakers an opportunity to attract customers who had been considering Volvo’s new SUV.
Volvo’s production delays therefore present a challenge beyond manufacturing alone. The company must also contend with the potential sales impact of having too few vehicles available during the EX60’s early rollout.
Volvo EX60 Range and U.S. Pricing
Despite its production difficulties, the EX60 offers a claimed driving range of up to 400 miles. Its starting price also keeps it relatively close to the gasoline-powered XC60, making the electric model a significant addition to Volvo’s lineup.
The base P6 rear-wheel-drive model starts at $58,400. The all-wheel-drive P10 is priced at $60,750, while the Ultra trim starts at $66,400.
The EX60’s range, pricing and position within Volvo’s lineup give the company a model aimed at expanding its electric vehicle business. However, production constraints and limited U.S. allocations could slow its progress as Volvo works to increase output and meet demand.
