Volvo Cars Recalls 40,000 Electric SUVs Due to Battery Fire Risk

• The recall covers EX30 Single-Motor Extended Range and Twin-Motor Performance models, with owners advised to limit charging to 70% and park away from buildings until batteries are replaced
• Battery replacement costs could reach $195 million excluding logistics and repair expenses, according to Reuters analysis, though Volvo disputes this as 'speculative'
• Industry analysts warn the issue is particularly damaging for Volvo since safety is central to its brand identity, with the EX30 being critical to its electric vehicle strategy and competition with Chinese manufacturers

Summary

Volvo Cars Recall: Key Details

Volvo Cars is recalling 40,323 EX30 electric SUVs due to battery fire risk from potential overheating of high-voltage battery packs. The recall affects Single-Motor Extended Range and Twin-Motor Performance models and represents a significant challenge for the Swedish automaker, owned by China's Geely.

Financial Impact

The recall could cost Volvo approximately $195 million for replacement battery packs alone, excluding logistics and repair costs, according to Reuters analysis. This comes as Volvo pursues a $1.9 billion deal and deeper integration with parent company Geely.

Safety Measures

Since December, Volvo has instructed EX30 owners in over a dozen countries—including the US, Australia, and Brazil—to park away from buildings and limit charging to 70% to eliminate fire risk. The company will replace affected battery modules free of charge.

Supplier Information

The defective batteries were manufactured by Shandong Geely Sunwoda Power Battery Co., a Geely-backed joint venture. Volvo confirmed the supplier has fixed the problem and will supply replacement cells.

Market Implications

The recall poses significant reputational risk for Volvo, whose brand identity centers on safety. Industry analysts emphasize the EX30 is crucial to Volvo's strategy to compete with cheaper Chinese EV brands. Andy Palmer, industry veteran, noted Volvo "can't afford a safety issue because that strikes at the heart of their brand."

Customer dissatisfaction is evident, with some owners seeking returns due to safety concerns and reduced range from the 70% charging cap. The incident echoes GM's 2020 Chevy Bolt recall of 140,000 vehicles for similar battery fire risks.