Volvo is ditching sedans and most wagons in this shrinking market

Volvo ditches sedans in the U.S.

Volvo is cutting most of its sedans from the U.S. market. That includes longtime favorites like the S60 and S90, which will no longer be available.

This isn’t a total retreat, but it’s a major shift. Volvo says demand just isn’t there anymore, and it’s time to let them go. With tariffs pushing costs higher, keeping these cars around didn’t make financial sense.

Wagons are rolling out of sight

Remember when wagons were Volvo’s bread and butter? Those days are nearly over. The V90 is on its way out, and the only survivor will be the V60 Cross Country.

It’s more of a rugged crossover now than a classic long-roof wagon. The market has shifted, and so has Volvo’s focus. Once known for boxy, safe wagons, Volvo is now leaning into SUVs with big wheels and higher seating. Nostalgic fans might be disappointed, but the writing’s on the wall.

Tariffs hit harder than expected

One big reason behind these changes? Tariffs. Import taxes on cars built in China have made it tough for Volvo to keep prices competitive.

Volvo is owned by the Chinese parent company Geely, so many of its cars are assembled overseas. Bringing them to the U.S. now adds thousands to the price. The ES90, for example, couldn’t be sold here profitably at all.

Volvo pulls plug on ES90 EV

The ES90 electric sedan was supposed to be a big deal, fast, sleek, and super powerful with 670 horsepower. But U.S. drivers won’t get to see it.

Volvo canceled plans to bring the ES90 here, citing pricing problems and shrinking interest in large electric sedans. Despite all the hype, they couldn’t make the numbers work. That stings for EV fans who were hoping for another option.

SUVs steal the spotlight now

Volvo is officially going all-in on SUVs in America. It’s not giving up on cars completely, but it’s making clear where the money is.

Buyers want bigger rides, more space, and higher driving positions. That means crossovers and SUVs are in, and sedans are out. The XC lineup (XC40, XC60, XC90) is now the backbone of Volvo’s U.S. business. These vehicles hit the sweet spot for families, commuters, and weekend warriors.

S60 fades quietly from showrooms

Volvo stopped producing the S60 last year, but few people noticed. It was a smooth, stylish sedan, but not enough to stay alive.

Even though the S60 was updated in recent years, interest just wasn’t strong enough. Volvo decided not to keep making a car people weren’t buying. It’s a quiet end for a model that once led the brand’s push into the U.S. luxury market.

S90 exits earlier than planned

Volvo was supposed to keep the S90 sedan around until late 2025. Instead, they cut it early and moved on.

The S90 was big, elegant, and high-tech, but it never broke through in sales. Once tariffs hit and margins shrank, Volvo pulled the plug. Even long-term plans aren’t safe when the market turns this fast. It’s a reminder that no car is safe from being cut if it stops making money.

V90 waves its last goodbye

The global phase-out of the V90 is nearly complete. That leaves just one wagon, the V60 Cross Country, for U.S. buyers.

The V90 was elegant and practical, but it never really caught fire in American showrooms. Big wagons just don’t pull the crowd they once did. The V60 sticks around, but even that’s only in a lifted, SUV-like form. Volvo seems done with traditional wagons, at least here.

Meet the new all-crossover Volvo

With sedans and wagons gone, Volvo’s lineup here is all about crossovers. The XC40, XC60, and XC90 carry the torch forward.

These vehicles come in gas, hybrid, and fully electric versions. They fit the modern driver’s needs, roomy, efficient, and family-friendly. Volvo is betting big that American buyers will stick with these shapes.

American-built models dodge tariffs

To fight back against high import taxes, Volvo started building some models in the U.S. The XC60 is now made right here.

That helps keep prices in check and avoids extra shipping costs. It’s also a smart way to stay competitive as global trade rules shift. American production gives Volvo a foothold that doesn’t rely on overseas factories. It’s not about patriotism, it’s about practicality.

U.S. sales numbers take a hit

Volvo’s second-quarter U.S. sales dropped 18% compared to last year. That’s a steep decline for a premium automaker.

The first half of the year also came in about 10% below 2024 numbers. Fewer buyers mean tougher decisions. Cutting slow-selling cars is one way to steady the ship. Volvo’s trimming the fat and focusing on what moves quickly. That’s why sedans and wagons are getting the boot.

Electric XC40 hits pause button

The XC40 Recharge, also known as the EX40, had its production temporarily paused. Volvo hasn’t said exactly why.

It could be demand, supply chain issues, or a simple strategy. The company only said sales would resume “shortly.” That’s vague, but telling. Even established EVs face bumps in the road. It’s part of a bigger shake-up where nothing is guaranteed.

Other automakers feel the heat too

Volvo isn’t the only brand changing course. Nissan recently canceled two electric sedans planned for U.S. release.

The reason? Low demand and high costs, just like Volvo. It’s clear the market for sedans, even electric ones, is shrinking fast. Buyers are turning to crossovers, and automakers are following. These aren’t just style choices, they’re business decisions.

V60 Cross Country stays alive

The V60 Cross Country is now the last true wagon Volvo sells in the U.S., if you can even call it that.

It’s raised, rugged, and wears plastic cladding like an SUV. It’s a wagon in spirit, but built for crossover fans. Volvo kept it because it straddles both worlds: traditional styling with modern capability. If you’re nostalgic for classic Volvo wagons, this is your final option.

Volvo hits the brakes in 2025

CEO Martin Lundstedt says 2025 will be a “wait and see” year for Volvo in America. The company is being cautious.

They’re scaling back production and watching consumer trends closely. It’s not a retreat, it’s a reset. The whole auto industry is shifting, and Volvo is trying to stay nimble. With demand down and tariffs in place, the brand isn’t gambling on riskier models.

Curious what Volvo’s cooking up next? Check out how they’re bringing back the XC70, with a hybrid twist.

Volvo reassures U.S. customers

Despite pulling so many models, Volvo promises it’s not leaving the U.S. market. They want to make that 100% clear.

The brand still sees America as a key region for growth. Cutting sedans and wagons doesn’t mean giving up; it means adapting. Volvo is pivoting toward what buyers want most, and for now, that’s SUVs. The company is making adjustments, not exits.

Wondering what else is changing? See why Volvo just recalled some EVs and hybrids over a serious brake issue.

Miss your favorite Volvo sedan? Share which one in the comments.

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This slideshow was made with AI assistance and human editing.