2025.5 Volvo XC90 brings SUV design and technology into the modern age

Volvo just unveiled the EX90 electric three-row SUV, but the current XC90 with gas and plug-in hybrid powertrains isn't going anywhere.

The new XC90 was unveiled Wednesday and will go on sale in the U.S. later this year for a base price of $59,745, including a $1,295 destination charge. This is a substantial discount to the EX90's starting sales price of $81,290, but the electric SUV, which will also go on sale later this year, may qualify for the tax credit.

The updated XC90 will be available as a 2025.5 model in the U.S., with some initial overlap with the current version, which has been on sale since 2015. The updates are substantial and include exterior and interior changes, as well as chassis upgrades.

The platform is Volvo's SPA design, which debuted 10 years ago with the current XC90, and Volvo has updated it with a new integral link rear suspension setup that the automaker says will help with stability and traction while towing. Sound insulation has also been added for a quieter, more comfortable ride.

For the U.S. market, powertrains include two 48V mild hybrid options (B5 and B6) and one plug-in hybrid option (T8). All-wheel drive and an 8-speed automatic transmission are standard on all models.

The B5 adds a 247 hp 2.0-liter turbo four and the B6 adds a 295 hp supercharger to the engine; the T8 combines a 2.0-liter turbo four and electric motor at the rear axle, with the gas engine producing 310 hp at peak and the electric motor producing 145 hp. The T8 has also equipped with an 18.8 kwh battery, which Volvo estimates, based on EPA test cycles, will allow for a range of 32 miles.

Exterior styling remains largely unchanged, which is not a bad thing considering the current XC90's good looks. The biggest change is at the front, where new matrix LED headlights feature a slimmer design and new daytime running lights with a Thor's hammer motif. The grille also has a new design that mimics a textile pattern.

On the interior, the dashboard has been changed and now features a larger 11.2-inch touchscreen for the infotainment system with Volvo's latest software, which is already available on the EX30 and EX90 electric SUVs. The system has Google built in and also supports Apple CarPlay and over-the-air software updates.

The XC90 also features some of the sustainable materials introduced in the EX90, including Nordico trim, a leather-like material made from recycled plastic bottles. The SUV can be equipped with Harman Kardon premium audio or a Bowers & Wilkins system with 19 speakers and four surround sound listening modes on it.

For the U.S. market, only six- and seven-passenger configurations will be available.

Volvo had previously pledged to sell only EVs by 2030, but on Wednesday it backed off that plan and also said it aims to have both EVs and plug-in hybrids account for 90-100% of sales by 2030. This follows similar announcements by automakers such as Cadillac, Hyundai, Mercedes-Benz, and Porsche, all of which have recently scaled back their EV ambitions in response to slower-than-expected growth in battery-only powered vehicles