Sweden-based automobile giant, Volvo Cars has announced a delay in the production of its new Volvo EX90 model due to the need for additional software development and testing.
The company stated that the fully electric SUV will not be produced until the first half of 2024, a delay of approximately six months from the previous plan. The announcement of the delay caused the company’s shares to fall by 5%.
According to a statement by Volvo, “The company now expects to start production of the fully electric SUV in the first half of 2024.”
The Volvo EX90 model was unveiled by the company in late 2020, with plans to release it in early 2024.
According to Reuters, the start of production has been pushed back, and the company declined to comment on when it now expects the model to be available in showrooms.
A spokesperson for Volvo Cars said that the production of the model was previously scheduled to begin by the end of 2023.
The delay in production is attributed to the company’s desire to improve the software development and testing process, indicating a commitment to ensuring high quality and safety standards for their electric SUV model.
Volvo Cars is majority-owned by China’s Geely Holding Group, which acquired the company from Ford Motor Company in 2010. Despite being a Swedish brand, Volvo Cars’ production facilities are located across the globe, including in Sweden, China, and the United States.
In recent years, Volvo Cars has received numerous awards for its safety features and advanced technology, including recognition for its autonomous driving capabilities. The company has also taken steps to reduce its carbon footprint, such as using recycled materials in its vehicles and pledging to become carbon-neutral by 2040.