Volvo’s ambitious electric vehicle expansion has encountered a serious manufacturing obstacle, potentially leaving North American dealerships short of one of the company’s most anticipated new SUVs.
Industry reporting published in October 2026 suggests the Swedish automaker is producing approximately 200 EX60 electric crossovers per week, far below a reported target of 2,000. The difficulties involve advanced manufacturing technologies intended to make the vehicle lighter, more efficient and less expensive to build.
The consequences are already reaching dealerships. Volvo is reportedly prioritizing European deliveries, while substantial shipments to the United States could be delayed until the second half of 2027. Canadian buyers face additional uncertainty despite the EX60 already recording limited domestic sales.
For an automaker counting on its newest electric SUV to strengthen its global position, the production slowdown threatens an important launch at a time when competition and financial pressures are intensifying.
Volvo’s Production Rate Is Reportedly 90% Below Its Target
Volvo’s EX60 manufacturing operation is running substantially below expectations, according to reporting by Automotive News in October 2026. A person familiar with the situation told the publication that production at the company’s Torslanda factory in Sweden was approximately 200 vehicles per week, compared with a planned rate of 2,000. That represents just 10% of the reported target. The figures have attracted attention because the EX60 was intended to become a major volume product rather than a low-production luxury model.
However, an important distinction remains. Volvo has not publicly verified the specific 200-unit weekly figure, and the company does not routinely disclose production totals for individual models. It has acknowledged that increasing EX60 output is taking longer than initially expected. The reported shortfall should therefore be understood as an industry-sourced assessment rather than an audited manufacturing result. Even with that qualification, the difference between planned and reported output helps explain why dealerships are receiving fewer vehicles than originally anticipated and why customer delivery expectations are being revised.
An Ambitious April Launch Created Expectations of Rapid Growth
The EX60 entered production on April 22, 2026, at Volvo’s Torslanda manufacturing plant near Gothenburg, Sweden. The company had unveiled the midsize electric SUV in January and quickly reported encouraging demand. By early March, more than 3,000 orders had already been placed in Sweden, while several other European markets were recording interest above internal forecasts. Volvo consequently announced plans to increase production for 2026, including an ambition to keep the factory operating for an additional week during the summer.
The commercial expectations were substantial. Reuters reported in April that Volvo was preparing to manufacture as many as 40,000 EX60 vehicles during 2026. That ambition reflected the importance of developing an electric equivalent to the XC60, which had become the brand’s best-selling vehicle of all time. Initial customer deliveries began in Europe in July, suggesting the launch had progressed beyond announcements and prototype demonstrations. Yet building a limited number of finished vehicles and establishing stable high-volume production are different achievements. The challenge now is converting early demand into dependable manufacturing output.
New Megacasting Technology Has Made Factory Operations More Complex
One major source of difficulty involves megacasting, an advanced manufacturing method being introduced with the EX60. Traditional vehicle construction typically requires numerous stamped metal components to be assembled and joined together. Megacasting replaces many smaller structural pieces with a single large aluminum casting. Volvo says the technique can reduce vehicle weight, simplify manufacturing and improve energy efficiency. The EX60 is the company’s first vehicle to incorporate this approach, making it a major technological milestone for its Swedish manufacturing operations.
Introducing megacasting required extensive upgrades at Torslanda. Volvo previously announced investments of approximately 10 billion Swedish kronor in the factory, including new casting capabilities, battery assembly facilities and improvements to the paint shop and final assembly operations. These changes are intended to support future electric vehicles as well as the EX60. However, incorporating unfamiliar processes into an operating automotive factory presents challenges during the early production period. Equipment, component integration and assembly procedures must function consistently before the facility can sustain higher volumes. The reported delays demonstrate the difference between promising engineering concepts and reliably producing thousands of vehicles every week.
Battery Integration and Electric Motors Are Adding to the Bottleneck
The EX60 also uses cell-to-body technology, which integrates its battery system into the vehicle’s structure rather than treating the battery as a completely separate assembly. Volvo designed the approach to reduce unnecessary weight and improve packaging efficiency. The vehicle also incorporates new electric motors developed by the manufacturer. Together, these technologies form part of Volvo’s SPA3 electric vehicle architecture, intended to support a new generation of electric cars with improved range, charging performance and manufacturing efficiency.
According to industry reporting, difficulties connecting the high-voltage battery system to the vehicle body and challenges involving electric motor manufacturing have contributed to the slow production ramp-up. Volvo has confirmed that implementing new technologies is taking longer than planned, but has not independently confirmed every technical detail attributed to unnamed sources. The company has also emphasized that the delays are not connected to vehicle quality, safety or performance. That distinction matters because a manufacturing bottleneck is not automatically evidence of a defective vehicle. The available reporting concerns Volvo’s ability to build enough EX60s, not a confirmed safety-related failure in customer vehicles.
Europe Is Receiving Priority as North American Deliveries Fall Behind
Volvo’s decision to prioritize Europe reflects important differences between its regional markets. The company began delivering EX60s to European customers in July 2026, with Swedish buyers among the first recipients. European demand had been encouraging since the vehicle’s introduction, particularly in Sweden and Germany. Volvo’s third-quarter sales figures reinforced that regional strength: deliveries of fully electric vehicles in Europe and the rest-of-world reporting region increased 51% compared with the same quarter in 2025.
North America presents a more challenging environment. Volvo’s reported sales across the Americas declined 14% during the third quarter, while fully electric deliveries in that region fell 47%. Those figures provide commercial context for prioritizing European customers when production capacity is scarce. The company can direct limited vehicles toward markets showing stronger electric vehicle demand, although individual allocation decisions have not been disclosed in full. For American and Canadian dealers, the consequence is a smaller initial supply of EX60s. A customer willing to place an order may still face a lengthy wait if their preferred configuration is not included in an early shipment.
U.S. Dealerships May Wait Until Late 2027 for Substantial Inventory
The production slowdown has significantly altered expectations for the EX60’s American launch. Volvo officially opened U.S. orders on May 18, 2026, announcing a starting price of US$58,400 before destination charges. Dealers had previously described an expectation of approximately 7,000 American EX60 sales during 2026. Instead, Automotive News reported that only a limited number of vehicles had reached the market and that the company had notified retailers of revised delivery arrangements.
A memorandum sent to dealers in late September acknowledged the manufacturing challenges. Volvo spokesperson Jacquelyn Johnson subsequently confirmed that availability would remain limited in the near term, while indicating that a significant number of allocated vehicles were expected to reach dealers in early 2027. Industry reporting nevertheless suggests that regular, substantial shipment volumes may not materialize until the second half of that year. These statements are not necessarily contradictory: some vehicles can arrive early in 2027 without dealerships receiving enough inventory to meet broader demand. The reported changes represent a delayed volume ramp-up rather than a cancellation of the vehicle’s American introduction.
Canada’s EX60 Launch Has Begun, but Supply Remains Limited
Canada occupies a particularly interesting position because the EX60 has already recorded sales in the country. Volvo Car Canada opened online orders and deposits in April 2026, originally indicating that deliveries of the P10 all-wheel-drive variant would begin late in the year. However, the company’s official third-quarter sales report recorded 50 EX60 vehicles sold in Canada between July and September. That figure confirms the Canadian launch was not entirely postponed, even though the broader manufacturing situation remains difficult.
Those 50 sales are small compared with the volumes recorded by Volvo’s established Canadian products. The XC60 generated 1,269 sales during the same quarter, while the XC90 accounted for another 1,020. Volvo operates through 37 automobile retailers across Canada, giving it an established sales and service network for the new SUV. The challenge is supplying that network consistently. Although reporting indicates North American allocation constraints, Volvo has not publicly established one uniform revised delivery date for every Canadian order. Availability may depend on the specific vehicle configuration, existing dealer allocations and future shipments from Sweden.
Canadian Pricing Starts at C$77,500, Before Additional Costs
Volvo introduced the Canadian EX60 P10 AWD Plus with a starting manufacturer’s suggested retail price of C$77,500. The more extensively equipped P10 AWD Ultra was announced at C$84,000. Both prices exclude freight, pre-delivery inspection, applicable fees and taxes. The Plus includes features such as heated seats, advanced driver assistance systems, integrated Google services and a premium audio system. The Ultra adds equipment including upgraded interior materials, ventilated front seats and a Bowers & Wilkins sound system.
These figures place the EX60 firmly in Canada’s premium electric SUV market. They also have implications for government incentives. Under Canada’s 2026 Electric Vehicle Affordability Program, qualifying imported vehicles generally must have a final transaction value of C$50,000 or less to receive a federal purchase incentive. Canadian-manufactured vehicles are exempt from that price ceiling, but the EX60 is produced in Sweden. Its announced Canadian pricing therefore exceeds the program’s threshold. For buyers comparing electric SUVs, the relevant calculation includes the purchase price, taxes, financing expenses and available incentives rather than the manufacturer’s advertised starting price alone.
The EX60 Offers Up to 531 Kilometres of Canadian-Certified Range
The EX60’s driving range remains one of its most important selling points. In July 2026, Volvo Car Canada announced that Natural Resources Canada had certified an estimated range of up to 531 kilometres for the 2027 EX60 P10 AWD when equipped with 20-inch or 21-inch all-season tires. Choosing 22-inch wheels reduces the published estimate to 502 kilometres. The P10 AWD also features a 95-kilowatt-hour battery and an 800-volt electrical system designed to support rapid charging.
Volvo estimates that the P10 AWD can recharge from 10% to 80% in approximately 18 minutes when connected to a suitable 400-kilowatt DC fast charger under appropriate conditions. The company also says its native North American Charging Standard port provides adapter-free access to compatible Tesla Superchargers across Canada and the United States. Real-world performance remains dependent on temperature, charging equipment, driving style and battery conditions. A Canadian family planning winter highway trips should therefore distinguish official test-cycle estimates from the range achievable in cold weather. The engineering specifications may be attractive, but they cannot resolve the immediate problem of limited vehicle availability.
Volvo’s Latest Sales Figures Reveal a Wider Business Challenge
The EX60 production difficulty arrives during a challenging period for Volvo’s global operations. On October 2, the company reported third-quarter worldwide sales of 141,609 vehicles, a decline of 10.7% compared with the same period in 2025. Conditions were particularly difficult in China, where sales dropped 40.6%. The Americas declined 14%, while Europe and the rest-of-world reporting region managed a 2% increase. Despite the overall downturn, Volvo’s global fully electric vehicle sales rose approximately 29%, illustrating the considerable differences between regions and product categories.
Canadian results showed similar pressures. Volvo Car Canada sold 3,645 vehicles during the third quarter, down 13.2% year over year. Of those, 1,067 were fully electric or plug-in hybrid vehicles, a decline of 28.6% from the corresponding quarter in 2025. Fully electric vehicles alone accounted for 388 Canadian sales. These figures explain why a successful EX60 rollout matters commercially. The company needs products capable of attracting buyers in competitive markets, but demand is only one part of the equation. Delayed production can prevent an otherwise appealing vehicle from contributing meaningfully to sales and revenue.
Dealers Must Keep Customers Interested While They Wait
The supply difficulties create a practical challenge for Volvo dealerships. A new model normally provides opportunities for showroom visits, test drives and conversations with customers considering a replacement vehicle. When availability is uncertain, those discussions become more complicated. Canadian retailers can still offer established products such as the XC60 and XC90, which remained the brand’s strongest-selling models domestically during the third quarter. However, a customer specifically seeking a fully electric midsize Volvo may not regard a gasoline or plug-in hybrid alternative as an equivalent purchase.
Competition adds urgency. The EX60 enters a segment that includes electric SUVs from Tesla, BMW, Mercedes-Benz and other manufacturers, giving shoppers alternatives if their preferred Volvo configuration is unavailable. The vehicle’s published range, technology and comfort features may encourage some buyers to wait, but others will prioritize predictable delivery dates. Customers placing deposits should obtain written confirmation of the applicable order terms, whether the deposit is refundable and how estimated delivery dates will be communicated. A vehicle being available to configure or order online does not necessarily mean an identical model is ready for immediate delivery at a nearby dealership.
The Next Production Updates Will Determine Whether Volvo Can Recover
Volvo’s immediate priority is turning its upgraded Swedish manufacturing operation into a dependable source of finished vehicles. The company has already acknowledged that the EX60 ramp-up is taking longer than planned, while maintaining that the difficulties do not reflect a confirmed problem with safety or performance. The financial environment is also becoming less forgiving. On October 2, Volvo withdrew its previous full-year 2026 sales-volume and cash-flow outlook, citing weaker market conditions in China and a slower American recovery than anticipated.
Several indicators will reveal whether the EX60 situation is improving. Higher verified production volumes, consistent European deliveries, growing North American allocations and stronger model-specific sales would all provide evidence of progress. Volvo’s scheduled October 23 financial results may also offer further context about manufacturing investments and the company’s near-term priorities. For Canadian consumers, the most meaningful improvement will be dependable delivery estimates backed by vehicles actually reaching dealerships. The EX60 remains an important technological step for Volvo, but its commercial success will depend on making advanced manufacturing processes work at the scale originally envisioned. Until then, strong specifications and customer interest cannot fully compensate for limited supply.
