A short term risk to long term sustainable mobility incurs a steep cost of entry. Wayne Gerdes – CleanMPG – July 5, 2017 Just two days ago Volvo announced its June U.S. sales totals with 7,303 vehicles sold, down a rather steep 15.0 percent from the 8,588 sold in June of 2016. YTD sales are only marginally better with sales of 34,105 vehicles, down 7.0 percent below the 36,654 sold through the same period of 2016. In an early morning release, the luxury car brand announced its intention that every new model it launches from 2019 forward will be electrified. More specifically, “Every Volvo it launches from 2019 will have an electric motor, marking the historic end of cars that only have an internal combustion engine (ICE) and placing electrification at the core of its future business.” While the electrification is noteworthy, it is more of a 48V mild-hybrid/plug-in hybrid announcement. Between 2019 and 2021, Volvo did say they will launch 5 pure electric models. Three of which will be Volvo models and two of which will be high performance electrified cars from Polestar, Volvo Cars' performance car arm. These five cars will be supplemented by a range of gasoline drivetrains here in the U.S. and both gasoline and diesel PHEVs and 48V mild hybrid options on all models. Meaning internal combustion engine only designs will slowly be phased out and replaced by the electrified options. From the same release, Volvo stated they will reach climate neutral manufacturing operations by 2025. While Volvo states that consumer demand for electrified cars is rising and they want to be at the forefront, their PHEV is a $100k+ unit. Maybe they will find the core group to pay the high costs of Volvo ownership in the future. My bet is their push will be backed down a bit to match market realty’s. Meaning there will be more PHEVs in the mix then pure BEVs. At least here in the states for the foreseeable future. The base "Momentum" trim starts at $45,750. 2017 7-passenger Volvo XC90 “Inscription” trim includes ventilated soft perforated Nappa Leather and Linear Walnut Wood Inlays, 20" Alloys, Inscription Grille, a 12.3” Digital Instrument Display and starts at $57,350. The 2017 7-passenger Volvo XC90 T8 “Excellence” trim is a PHEV w/ a Bowers & Wilkins Premium Sound System, Beverage Cooler/Refrigerator, Front and Rear Seats w/High-spec Ventilation and Massage Function seating with a starting price beginning at a jaw dropping $104,900. US. Spec XC90 Drivetrain Details The T5 uses a direct injected and turbo charged 250 hp and 258 lb-ft. of torque 2.0L I4 w/ a 0 to 60 time of 7.9 sec. for the AWD variant. The AWD only T6 uses direct injected, turbo charged, and supercharged 316 hp and 295 lb.-ft. of torque 2.0L I4 (T6) w/ a 0 to 60 time of 6.6 sec. The AWD only T8 uses the direct injected, turbo charged, and supercharged 313 hp and 295 lb.-ft. of torque 2.0L I4 (T8) combined with a 14-mile range PHEV configuration including an 87 hp electric motor for a combined output of 400 hp and 470 lb-ft. of torque w/ a 0 to 60 time of 5.3 sec. The lowest cost PHEV can be picked up in the R-Design trim w/ the T8 drivetrain ($67,800) vs. T5 ($51,500) or T6 ($56,250) in the same trim. 14-miles of AER for $16.3k or $11.5k depending on drivetrain? That is a ridiculous upcharge! A whopping 14-miles of all-electric range in this day and age? Did someone transport us back to 2011? The XC-90 with the ultra-expensive T8 drivetrain delivers an EPA-rated 53 MPGe. That is just a lousy efficiency result. Anyone see a problem with Volvo’s idea of electrification on both the efficiency and pricing front? The U.S. $7,500 Tax Credit and small state incentives are not going to save them in this regard.