Volvo Halts EX40 in the US, Enhances XC40 with Advanced Sensors and Gemini AI

Volvo has announced the cancellation of its entry-level electric EX40 in the US, while simultaneously refreshing the hybrid XC40. Set to hit dealerships early next year, the revamped XC40 boasts updated exterior styling, a completely overhauled interior featuring Google’s Gemini AI assistant, a larger infotainment screen, and a new suite of safety technologies.

The EX40 will be replaced by the slightly larger EX50, which will utilize Volvo’s more affordable SPA3 platform. This new EV is expected to arrive in US dealerships by mid-2027, with a starting price likely in the high-$40,000 range.

The XC40 hybrid serves as a transitional option for those seeking better fuel efficiency without fully committing to an electric vehicle. This is particularly important for Volvo, which has recently stepped back from its goal of exclusively selling EVs by 2030. However, details regarding the XC40’s powertrain, engine options, electric motor, range, or battery capacity remain under wraps, leaving us to see how it will fare in the competitive hybrid market.

Visually, the XC40 features a refreshed take on Volvo’s iconic “Thor’s Hammer” LED headlights, along with an updated front grille, bumper, hood, and front wings. The rear has also been redesigned with new lighting, a new bumper, and an upgraded tailgate. Additionally, buyers can choose from three diamond-cut wheel options in 18-, 19-, and 20-inch sizes.

The interior enhancements are where Volvo really shines. The infotainment screen has been upgraded to a larger, 11.2-inch size with higher resolution. It will run on Volvo’s latest user interface, designed for quicker navigation with fewer taps. Google’s Gemini AI acts as the voice assistant, capable of planning routes, locating specific destinations, and managing messages. The XC40 also features an improved wireless phone charger and smart storage solutions.

Safety is a top priority for Volvo, and the XC40 steps up with a new software and sensor platform aimed at real-time collision avoidance, automated emergency steering, and automatic emergency braking. The sensor upgrades include new front and corner radars, a new front camera, rear corner radars, 12 new ultrasonic sensors, and new parking cameras. This enhanced sensor suite introduces new safety features, such as door opening alerts to warn occupants of passing cyclists, lane change assist, and smoother lane-keeping support for long drives, along with an optional 3D/360-degree camera for easier low-speed maneuvering and parking.

The ultimate aim is to create a better XC40—one that is safer and more capable, which should lead to improved sales and a longer lifespan for Volvo’s compact SUV.

“By enhancing the XC40’s design, technology, and safety features, we’ve created the best version of the XC40 yet,” said Akhil Krishnan, Interim Lead for the 30 and 40 Series at Volvo Cars. “This already popular model is now set to continue being one of our best-selling cars for years to come.”