January 24, 2026 – According to a recent report from CarBuzz, Volvo’s management has reiterated that the “full electrification” strategy remains at the heart of the company’s vision, with its electric vehicle (EV) business already delivering significant financial returns.
When discussing profitability, Volvo CEO Hakan Samuelsson emphasized that the brand is now more profitable thanks to its EV lineup. He explained that electric models are not only generating profits independently but also driving up overall sales volumes. Without EVs, Volvo would see a decline in both sales and revenue, leading to lower profits. Although Samuelsson acknowledged that EVs currently have lower profit margins compared to internal combustion engine (ICE) vehicles, he stressed that their profitability justifies continued expansion of the electric portfolio.
At the same time, Volvo is not turning its back on demand for ICE vehicles. Samuelsson revealed that the automaker is developing a “next-generation” plug-in hybrid (PHEV) system with a design philosophy closer to that of range-extended EVs.
Michael Fleiss, Volvo’s Chief Strategy and Product Officer, elaborated that the new PHEV technology won’t be a pure range-extender setup. Instead, the combustion engine will directly power the wheels when efficiency demands it, while also having the ability to operate in series mode as a generator when necessary. Fleiss confirmed that the system will offer an electric-only range of approximately 160 kilometers (99 miles).
Industry analysts believe this new powertrain could debut in future versions of existing models like the XC60 or be introduced in entirely new vehicles. Additionally, a new PHEV model is set to enter the U.S. market soon, with production taking place at Volvo’s South Carolina plant.
