The best selling model now is the XC70. ”Faced with incoming customers, this is the signal that every Volvo store salesperson is striving to convey. The C-position in the exhibition hall has already made space for it, and it clearly indicates Volvo's future development focus. Speaking of which, 2025 will not be peaceful. For Volvo, China is a crucial year for large-scale product updates; This is the first year for Hakan Samuelsson to resume his work overseas. It seems that everything is laying the groundwork for future development. Unfortunately, the changes in the global car market never show goodwill due to the will of a single company. When too many unexpected changes occurred and the annual financial report was presented to Volvo early on, whether it was a 99% year-on-year decline in operating profit to 300 million Swedish kronor or or the weak consumption in the entire market, it not only reminded Volvo that the dramatic changes in the automotive industry were beyond imagination, but also sounded the alarm for this nearly century old Nordic company once again. Transformation is not a performance, but a battle that requires 100% investment and cannot be lost. Backed by the resources of the Chinese market and Geely Automobile, Volvo will not decline due to paranoia like its "neighbor" Saab. However, no matter how the world changes, Volvo's future can only be written by itself, and no matter how many foreign players there are, they will only be assists.

Entering 2026, when signs of a sluggish car market immediately emerge, I believe Volvo is well aware of its situation. Especially when Chinese brands with high premiums such as Xiaomi and Huawei are becoming increasingly crazy, Volvo, which claims to be a luxury brand, does not have time to try and make mistakes again. From 2012 to 2022, Hanken Samuelson, who served as CEO, pulled Volvo back from the brink of death, reviving the fading glory of the brand once again. Today, in the full year since returning to Volvo, the work he has to do will not be easier than it was back then. The two evolving trends in China and overseas markets, as well as the aggressive behavior of Chinese companies, are assigning new challenges to them. If Volvo wants to regain its reputation and win the market again, this is not a gamble that can rise with good luck. What is needed is Volvo's global cooperation. In China, based on the current product matrix, the all-new XC70 is Volvo's only seedling.

01 New XC70, entrusted in the face of danger

The most impressive product launch from Volvo in the past year is the all-new XC70, which has a strong Chinese flavor. This is not to say that other products do not meet consumers' tastes, it is just that Volvo's new solution has finally been seen from this car. A different answer from the past Nordic way of thinking. In the months after its launch, no matter how many voices from the outside world try to link it with its domestic sibling models, sales are simply saying: Volvo got it right. Of course, from a certain perspective, this performance also made Volvo in 2026 secretly sweat.

As the Spring Festival draws to a close, Volvo proudly showcased its classic program - Safety Collision Test, and this time the target is the XC70. The results of the triple collision test of a 6.5-ton curling car at minus 20 degrees Celsius were still as expected, and the XC70 upheld Volvo's excellent tradition: the body was intact and the airbags were deployed normally. In this era where Chinese cars have already undergone a qualitative change, facing the industry background where body safety has become a standard for new cars, some people will jump out and question whether Volvo's operations are outdated. Compared to the XC60 "Die Die Le" test hosted by Volvo executives five years ago, its promotional tone has not fundamentally changed. Indeed, in today's era where the public yearns for intelligent cars, the old school Volvo always seems too traditional. Even compared to BBA, Volvo's attitude towards marketing is the most cautious. But today, no matter what Volvo is doing, how can its bottom layer be to maintain the so-called brand dignity? Starting from the XC70, Volvo urgently needs to find a new way out for itself in China, and even face competition from Chinese brands in the global market. In recent years, all signs have pointed out that Volvo in 2026 will definitely focus on electrification development. But the reason why I feel that Volvo has no way out at this moment. Not only because of the most impactful factor of worrying corporate profits, but also because of the overall posture presented by the industry. In the new product system, Volvo has been tirelessly researching electrification products for the past two years, hoping that the existing fuel matrix can have a corresponding successor. Just like the relationship between XC90 and EX90.

Now, when we carefully calculate, we will find that, like our predecessors, the consecutive appearance of EX30, ES90, and EX60 basically corresponds to XC40, XC60, and S90 in product positioning. That is to say, Volvo has not stopped exploring the path of electrification at all. Unfortunately, the EX90, which has been rumored to be entering China, has been delayed for almost three years; The award-winning EX30 has no room for survival in China, and compared to its sibling models Smart Elf 1 and Extreme Krypton X, it is difficult to gain consumer recognition; As for the recently released EX60, given the intense competition in China, it feels like its fate has been secretly arranged. Recently, as the flagship product of the brand, Volvo ES90 chose to bypass China and land in Malaysia, targeting Mercedes Benz EQE and BMW i5 directly. So, what does this move mean? In the midst of traditional luxury brand pure electric products hitting the wall in China, Volvo is actually very aware of how picky Chinese electric vehicle users are. In the short term, if we want to change this trend, even BBA cannot do it. Why would we take this risk ourselves? Starting from this month, just like the previous official announcement, Thomas Ingenlath's name will reappear on Volvo's executive list and serve as the brand's chief designer, reporting directly to the board of directors. “Design is the soul of Volvo”， Yes, the product innovation starting from the second generation XC90 is a legitimate name for Ingrath to put Volvo back on track.

Until today, although it cannot be said that the recall of him is the result of Volvo's reflection on its existing pure electric models, in the eyes of the outside world, perhaps his return can make Volvo's future product planning more appealing, rather than being as indecisive as it is now.

In 2025, when Chinese cars are crazily exporting their power to the global market, those Western car giants have not felt such strong pressure for a long time. From Europe to the Americas, wherever Chinese new energy vehicles enter, even the strongest automobile companies will always feel a sense of powerlessness when dividing the old and new eras. As a European company, Volvo has never been alone. Late last year, when Ford CEO Jim Farley announced the discontinuation of the F-150 Lightning, he pressed a tentative button for his own electrification progress. And the data is also showing that since 2023, Ford's electric vehicle business has accumulated losses of $13 billion (about 91.7 billion yuan). I believe this is just the real beginning of the pain of industry transformation that these giants are experiencing. Is this just Ford's voice that we cannot invest funds in unprofitable projects? From Ford to General Motors, and then to Stellantis and Volkswagen in Europe, which one can be said to have an advantage in the journey of electrification? Similarly, when it comes to Volvo, it is not an exaggeration to worry about the uncertainty of future development.

Currently, in recent issues of the Ministry of Industry and Information Technology's new car application catalog, electric vehicles including EX90 and ES90 are prominently listed, seemingly providing a preview for Volvo's upcoming product rhythm. But given the current competitive landscape in the Chinese market, how dare Volvo pin its hopes for electrification victory on such a product? By 2025, in the price range of 300000 to 500000 yuan, Chinese consumers have long shifted their focus from traditional luxury to mid to high end Chinese brands led by Wanjie, Ideal, and NIO. In terms of market growth and brand awareness, the latter's strong presence always overwhelms everyone. If you add players like Extreme Krypton and Tengshi who occasionally give the market a punch, the market will be so lively. When we throw out the viewpoint that 'the significance of XC70 to Volvo is comparable to that of a sea needle', considering that Volvo can still achieve around 150000 vehicles in China and more than 700000 vehicles worldwide every year, some people may think that this seems a bit excessive. However, since the launch of this car, when Volvo (China) has given XC70 more resources and energy from top to bottom than the sum of other products, perhaps Volvo itself has a very clear answer. Instead of relying on EX90, ES90, or even EX60 to assist, it's better to tell the Chinese story that XC70 carries in its own way. In the inhumane and internal development of the Chinese car market, 'no way out' sounds tragic, but there are too many examples on the path of industrial evolution. At the moment when fear becomes fuel, either standing triumphantly or lying down and being carried away, this determination is the path that those in the game will inevitably choose.

In the face of unsatisfactory global performance, we acknowledge that Volvo is beyond its control due to factors such as tariffs, weak demand, price pressure, and the cancellation of electric vehicle subsidies in the United States. Hanken Samuelson's 18 billion kronor cost cutting plan announced last year, which included cutting 3000 jobs globally, was also a last resort. But as long as reality is in front of us, since Samuelson has affirmed the performance of XC70 in the Chinese region, Volvo should know what kind of decision is the path it should take when choosing how to pursue electrification transformation. Just like how Yuan Xiaolin dared to take the XC70 on the ice to accept the challenge, the answer is right in front of him, and all the doubts from the outside world are just noise.